KIT

STARTUP
INDIA
Starter kit for budding entrepreneurs,
visionaries, and dreamers!

March 2023
About Startup India Kit
The Startup India Kit is a handbook to learn more about the benefits
offered under the Startup India initiative and the process to avail
them. The kit includes details about incentives such as market access
support, regulatory support, public procurement benefit, funding
support, tax benefits, IPR support, amongst others.

The kit also includes information about the Startup India online
platform (www.startupindia.gov.in) which offers probono services,
knowledge modules, details on government schemes, idea bank, active
programs in addition to network of mentors, investors, incubators,
accelerators, corporates, startups and aspiring entrepreneurs.
TABLE OF CONTENT

1 30
Startup India DPIIT -
Benefits Recognition

20 44
Startup India Glossary
Portal

28 47
What is a Startup
Startup? Funding cycle
 Startup
India Benefits
Startup India Recognition
DPIIT-Recognised Startups Are Eligible
For The Following Benefits:

Intellectual Property Rights (IPR)

Relaxation in Public Procurements Norms

Self-Certification under Labour & Environment laws

Fund of Funds for Startups (FFS)

Credit Guarantee Scheme for Startups (CGSS)

Startup India Seed Fund Scheme (SISFS)

Faster Exit for Startups

Angel tax exemption under Section (56)(2)(viib)

Programs & Challanges on Startup India Website

DPIIT-Recognised Startups May Apply To

Inter-Ministerial Board (IMB) For The Following
Benefits:
Section 80-IAC: Income Tax Exemption for 3 out of 10 years

Section 54GB: Capital Gain on Transfer of Residential Property

Section 79: Carry Forward and Set Off of Losses

Sections 156, 191 and 192: Deferment of Tax Liability on ESOPs

1 Startup India Kit

Startup India Hub
Resources

Learning and Step-by-step guide to starting a business in India

Development Programs

Centralised repository of entrepreneurship

Government Schemes related government schemes for the startup and
ecosystem enablers

Single point to access all notified startup policies

State Startup Policies by the respective state governments

Get free applications, cloud credits, legal, and

Probono Services banking support from key ecosystem partners

A quick walkthrough on all things related

Knowledge Bank to startups, including company registration,
investor engagement, legal considerations, etc.

A repository of sample templates for all legal and

Tools And Templates HR documents, investor decks, deeds, contracts,
etc.

Apply for programs and challenges for cash

Exclusive Innovation grants, mentorship, pilot projects and various
Programs other opportunities across the globe

Connect with mentors, investors, incubators and

Networking other enablers on the portal

Brainstorm innovative ideas for the listed

Idea Bank problem statements on the website

2 Startup India Kit

Benefits of
DPIIT-Recognition
Intellectual Property
1 Rights (IPR)

LAW
ENT
PAT

To promote awareness and adoption of IPRs by startups and facilitate

them in protecting and commercialising the IPRs, Startup India
provides access to high-quality intellectual property services and
resources, including:

Startup India Kit 3

Fast-tracking of startup patent Want to protect your
applications innovative idea?
The patent application of Scan  the QR code
startups is fast-tracked for to contact  the IPR
examination and disposal. The facilitators.
process is much faster for DPIIT-
recognised startups.

Panel of facilitators to assist in

IP applications 11,398
Facilitators are responsible for Applicants Received
providing general advisory on Fee Benefits1
different IPRs, and information
on protecting and promoting

902
IPRs in other countries. Central
Government bears the entire
fees of the facilitators for any
number of patents, trademark IPR Facilitators2
or designs, and startups only
bear the cost of the statutory
fees payable.

1. Data as of 31st March, 2023

2. Data as of 31st March, 2023

4 Startup India Kit

Rebate on filing of application

Startups are provided with an 80% the scheme have been amended.
rebate in filing of patents viz-a-viz Following fees structure will be
other companies, bringing down applicable to the empanelled
the cost from INR 8,000 to INR facilitators, for any number of
1,600. This helps them cut down patents, trademarks or designs
on costs in their early years. 50% that may be applied for by a
rebate is also provided in filing Startup. The facilitator shall
of trademarks viz-a-viz other not charge anything from the
companies decreasing the cost Startup or the entrepreneur, and
from INR 10,000 to INR 5,000. this fees shall be paid directly
to the facilitator by the Central
The Scheme was run on a pilot Government through the office
basis initially and was in force of the CGPDTM and disbursed
up to 31-3-2020. The scheme is by the respective IP office.
now being extended further for
a period of three years. However, This structure may be revised from
based on the experience gained time to time by the Department
from the implementation of the for Promotion of Industry and
scheme so far, certain aspects of Internal Trade.

Revised fee structure applicable from 02/11/2022 is as under:

5 Startup India Kit

 Relaxation In Public
2 Procurement Norms

Government of India has authorised its ministries, departments and

public sector undertakings to relax norms in all public procurements.
Startups are entitled to avail exemption on:

Prior Turnover | Prior Experience | Earnest Money Deposit

DPIIT-recognised startups can partnership with Startup India,

now get listed as sellers on the to promote entrepreneurship
Government of India’s largest through innovation. This program
e-procurement portal: is an opportunity for agile and
Government e Marketplace. lean startups to reach out to
the universe of Government
Get recognised and visit https:// buyers by offering products
gem.gov.in/ to avail the benefits! and services that are unique in
“GeM Startup Runway” is a concept, design, process, and
unique concept initiated by functionality through the Startup
Government e Marketplace in Runway corner.

Startup India Kit 6

DPIIT-recognised startups can been hosted on the Startup
also become preferred bidders India website where any DPIIT-
on CPPP portals, which sees recognized startup can submit
over 2,00,000 tenders every their public procurement related
year. Visit eprocure.gov.in and grievance. The submitted
etenders.gov.in to know more application shall be reviewed,
about Government Department and if found valid will be resolved
Procurement. by DPIIT in co-ordination
with relevant Government
A grievance redressal form has Departments.

18,035
DPIIT-recognised
startups registered
on GeM have made
sales worth INR
13,010.13Cr3

To know more about Public

procurement and access the
Grievance form, scan this QR
code

3. Data as of 31st March, 2023

7 Startup India Kit

 Self-Certification Under
3 Labour & Environment
Laws

Startups are allowed to self-certify their compliance under 9 Labour

and 3 Environment Laws for a period of 3 to 5 years from the date
of incorporation.

In respect of 3 Environment laws, units operating under 36 white

category industries (as published on the website of Central Pollution
Control Board) do not require clearance under 3 Environment
related Acts for 3 years.

Startup India Kit 8

To reduce the regulatory burden on startups, thereby allowing
them to focus on their core business and keep compliance costs
low.

29 States
Offer Self-Certification to
startups under 9 Labour Laws4

Scan this QR code to apply

for Labour Law Certificate.

4. Data as of 31st March, 2023

9 Startup India Kit

 Faster Exit For
4 Startups
Ministry of Corporate Affairs has notified Startups as ‘fast track firms’
enabling them to wind up operations within 90 days viz-a-viz 180
days for other companies. Startups with simple debt structures or
those meeting such criteria as may be specified may be wound up
within a period of 90 days from making of an application for winding
up on a fast-track basis.

Startup India Kit 10

Tax Exemption
Startups incorporated on or after 1st April 2016 can apply for income
tax exemption. The Inter-Ministerial Board validates the innovative
nature of the business for granting Income Tax Benefits and is
constituted by representatives from DPIIT, DBT, and DST.

1,169 Startups granted income tax exemption under

Section 80-IAC of the Income Tax Act5

7,933 Cases which have received intimation regarding

tax exemption under Section 56(2)(viib)6

Tax Exemption
5 For 3 Years
The recognised startups that are granted an Inter-Ministerial
Board Certificate are exempted from Income Tax for a period of 3
consecutive years out of 10 years since incorporation.

Startups incorporated on or after 1st April 2016 but before 1st

April 2023 can apply for income tax exemption under Section 80-
IAC of the Income Tax Act.

5. Data as of 31st March, 2023

6. Data as of 31st March, 2023

11 Startup India Kit

 Exemption For The Purpose
6 Of Clause (viib) Of Sub-
Section (2) Of Section 56
Of The Income Tax Act
A DPIIT-recognised startup is eligible for exemption from the
provisions of section 56(2)(viib) of the Income Tax Act.

The Startup has to file a duly signed declaration in Form 2 to

DPIIT {as per notification no G.S.R.127(E)} to claim the exemption
from the provisions of Section 56(2)(viib) of the Income Tax Act.

Scan this QR code to apply for tax exemption benefits.

Startup India Kit 12

New Amendments
Harmonisation Of Startup Definition
Department of Expenditure has harmonised the startup definition
under the Manual for Procurement of Consultancy and other Services,
2017 with the definition of DPIIT notified dated 19th February 2019.
The Manual for Procurement of Consultancy and other Services, 2017
now considers an entity as startup up to a period of 10 years viz-a-viz
5 years and turnover threshold has been revised from INR 25 crore
to INR 100 crore. Furthermore, an entity recognised as startup by
DPIIT shall now be eligible for benefit granted under Procurement
purposes as against the requirement of obtaining eligible business
certificate by the Inter-Ministerial Board.

For more information on the amendment, scan this

QR code.

Patent Fees For Educational

Institutions Reduced By 80 Per Cent
Startups are provided with an 80% rebate in filing of patents viz-a-viz
other companies. The benefit of 80% rebate has now been extended
to educational institutions as well. Educational institutions shall mean
a university established or incorporated by or under Central Act, a
Provincial Act, or a State Act, and includes any other educational
institution as recognised by an authority designated by the Central
Government or the State Government or the Union territories in this
regard.

For more information on the amendment, scan this

QR code.

13 Startup India Kit

Tax Incentives Relief to Startups
Have Been in Carrying
Extended For 1 Forward and
More Year For Setting Off of
Eligible Startups Losses
Startups have emerged as The Finance Bill 2023 has
drivers of growth for our proposed a change that will
economy. Over the past few have a significant impact on the
years, the country has seen a Indian startup ecosystem. The
manifold increase in successful amendment to Section 79 of the
startups. Eligible startups Income Tax Act, 1961, proposes
incorporated before 1st April to extend the period for eligible
2023 had been provided a tax startups to carry forward and
incentive for three consecutive set off losses incurred in the
years out of ten years from first 10 years viz-a-viz 7 years of
the date of incorporation. The their incorporation. This change
Finance Bill 2023 extended the comes as a much-needed
period of incorporation of the respite for startups who often
eligible startup by one more face financial challenges in their
year, that is, up to 31st March initial years of operation.
2024 for providing tax incentive.

For more information For more information

on the amendment, on the amendment,
scan this QR code. scan this QR code.

Startup India Kit 14

Reduction Ease of Reporting
in Maximum Process in Single
Surcharge Master Form
The Reserve Bank of India (RBI)
The Finance Bill 2023 proposed a
has simplified the reporting
reduction in the effective tax rate
process for foreign investment
from 42.7% to 39% for income
in India through the introduction
above Rs. 2 crores under the
of the Single Master Form (SMF)
new regime . This rate is capped
on the Foreign Investment
at 25%, which will encourage
Reporting and Management
investment in startups, promote
System (FIRMS) portal. The
direct investment by high-net
simplified reporting process
worth individuals and venture
will make it easier for startups
capital firms, and boost the use
to attract foreign investment,
of employee stock options by
as the process of bringing in
startups.
foreign investment will become
more streamlined and efficient.
With the increase in flow of
For more information
foreign investment startups
on the amendment,
will have greater access to
scan this QR code.
capital to grow and develop
their businesses. The Single
Master Form will reduce the
administrative burden on
startups, allowing them to focus
on their core business activities
rather than spending time and
resources on compliance and
reporting requirements.

For more information

on the amendment,
scan this QR code.

Startup India Kit 15

 Fund of Funds For
7 Startups (FFS)
To provide equity funding support for development and growth of
innovation driven enterprises, the government has set aside a corpus
fund of INR 10,000 crores managed by SIDBI. The fund is in the nature
of Fund of Funds, which means that the government participates in
the capital of SEBI registered Venture Funds, who invest twice the
amount in startups. The flow of funds is Government > SIDBI >
Venture Capitals > Startups.

INR 7,979.95 Cr 7

Committed to 99 AIFs with a total of INR 14,077

crores invested in 791 Startups

To contact the various AIFs for funding support, scan this

QR code.

7. Data as of 31st March, 2023

16 Startup India Kit

 Now the employment generation is not
confined merely to government services or
factories, with job seekers becoming job
creators. We are proud of the hard work
and innovative ideas of our youth!
SHRI PIYUSH GOYAL,
Hon’ble Minister of Commerce & Industry, Consumer Affairs,
Food & Public Distribution and Textiles, Government of India.
Leader of House in Rajya Sabha

Startup India Kit 17

 Startup India Seed
8 Fund Scheme (SISFS)
Department for Promotion of Industry and Internal Trade (DPIIT),
Ministry of Commerce and Industry is initiating Startup India Seed
Fund Scheme (SISFS) with an outlay of INR 945 Crore. The scheme
was announced by Hon’ble Prime Minister during Startup India
International Summit “Prarambh” on
16th January 2021.

Startup India Seed Fund Scheme (SISFS)

aims to provide financial assistance
to startups for proof of concept,
prototype development, product trials,
market entry and commercialis ation.
This would enable these startups to
graduate to a level where they will be
able to raise investments from angel
investors or venture capitalists or
seek loans from commercial banks or
financial institutions. The target of the
scheme is to disburse the Seed Fund to
3600 startups through 300 incubators
across India.

INR 590.3625 Cr 8

Sanctioned to 155 incubators

To apply for Seed Fund Scheme, scan the QR code.

8. Data as of 31st March, 2023

18 Startup India Kit

 Credit Guarantee Scheme
9 for Startups (CGSS)
The Department for Promotion of Industry and Internal Trade (DPIIT),
Ministry of Commerce and Industry has notified the establishment of
the Credit Guarantee Scheme for Startups (CGSS) for providing credit
guarantees to loans extended by Scheduled Commercial Banks, Non-
Banking Financial Companies and Securities and Exchange Board of
India (SEBI) registered Alternative Investment Funds (AIFs).

CGSS is aimed at providing credit guarantees up to a specified limit

against loans extended by Member Institutions (MIs) to finance eligible
borrowers viz. startups as defined in the gazette notification issued
by DPIIT and amended from time to time. The credit guarantee cover
under the scheme would be transaction based and umbrella based.
The exposure to individual cases would be capped at INR 10 crore
per case or the actual outstanding credit amount, whichever is less.
In respect of transaction-based guarantee cover, the guarantee cover
is obtained by the MIs on single eligible borrower basis. Transaction
based guarantees will promote lending by Banks/ NBFCs to eligible
startups. The extent of transaction-based cover will be 80% of the
amount in default if the original loan sanction amount is up to INR
3 crore, 75% of the amount in default if the original loan sanction
amount is above INR 3 crore, and up to INR 5 crore, and 65% of the
amount in default if the original loan sanction amount is above INR 5
crore (up to INR 10 crore per borrower).

The umbrella-based guarantee cover will provide guarantee to

Venture Debt Funds (VDF) registered under AIF regulations of SEBI
(a growing segment of funding in Indian startup ecosystem), in view
of the nature of funds raised by them and debt funding provided by
them. The extent of umbrella-based cover will be the actual losses
or up to a maximum of 5% of Pooled Investment on which cover is
being taken from the fund in eligible startups, whichever is lower,
subject to a maximum of INR 10 crore per borrower.
9. Data as of 31st March, 2023

19 Startup India Kit

 Startup
India Portal
Startup India provides probono services, knowledge modules,
details on government schemes, idea bank, active programs
for all startups and startup aspirants to help them scale faster,
better, and stronger. Unlock access to a host of opportunities and
benefits through Startup India website (www.startupindia.gov.in)
to navigate your way through the competitive startup world.

Startup India Kit 20

 6,15,776
6,31,507
*

USERS ON THE HUB

3,64,058 83 226 70
Evangelists and Investors Accelerators/ Government
Entrepreneurs Corporates Bodies

819 926 2,49,594

Mentors Incubators Startups

* Data as of 31st March, 2023

21 Startup India Kit

Learning and Start with an idea, end with a business plan!
Development To guide budding entrepreneurs through the
Programs journey of their startup venture, Upgrad offers
a free 4-week program on the key areas of
starting up by 40+ top founders of India. Upon
completion of the course, an acknowledgement
certificate for the learnings in the program is
also provided.

To start your free course today, scan

this QR code.

Government Many Government departments are working

Schemes to promote entrepreneurship in India. Startup
India has collated over 100 schemes which
can be filtered by relevant departments and
ministries for easy access.
To explore the various  Government
schemes, scan this QR code.

State’s Startup Startup India presents to you a list of 30+ State

Policies Government policies10 that offer benefits to
startups. Startups and entrepreneurs across
these states can access the policy documents,
website links, and contact details of the
respective nodal agencies.
Scan this QR code to know more about
these policies

Startup India Kit 22

Probono In our endeavor to make starting up easy, we
Services bring you the best of some relevant services
out there in the market, free of cost. We have
collaborated with leading corporates and
startups and others to bring you these services.
Whether you want to seek legal support, build
an app, use cloud credits or get cloud telephony
services, everything here is free of cost for you.

To explore the various Government

schemes, scan this QR code.

Innovation Startup India has been committed to working

Programs and with various corporate and government
Challenges departments that are scouting innovative
startups. Startup India connects enablers such
as corporate and government departments
with unique and innovative startups in various
sectors ranging from defense, agriculture
to sustainability for mutually beneficial
collaborations. Such challenges provide a
unique opportunity for startups in terms
of market access, opportunity, cash prizes,
incubation/acceleration, mentorship, etc.

To apply for these programs, scan this

QR code.

23 Startup India Kit

Tools and We have a wide range of templates ranging
Templates from lease agreements, employment contracts,
deeds, NDAs, etc. freely available in multiple
Indian languages that will allow the startups
to focus on what is important to the business.
You’ll need less than 2 minutes to customise
this for yourself using our document builder.

Scan this QR code to find access to

these templates

Networking Members of the startup ecosystem such

and Discussion as startups, investors, mentors, incubators,
accelerators, and government bodies can
connect with each other on the online forum of
the Startup India portal. The platform provides
the ecosystem members with the opportunity
to discuss, express and opine on the forum
through discussion threads, blogs, and one-to-
one messaging.

To join the discussion forum, scan the

below QR code.

Startup India Kit 24

International Startup India enables global market access
Bridges and knowledge exchange for Indian startups
through bilateral government collaborations.
Commonly referred to as Startup Bridges,
it enables startups, investors, incubators,
accelerators and aspiring entrepreneurs of
both countries to connect with one another by
providing them with resources to expand and
become globalised startups. Salient features
include:

Knowledge Exchange
Comprehensive guides and toolkits that
assist startups in both countries to evaluate
expansion opportunities and technology
transfers.

Networking Opportunities
Enable connections among startups,
mentors, investors, and incubators in
relevant sectors from both countries.

Hosting Joint Programs

From startup exchanges to innovation
challenges, the portal is a one-stop-shop
to host all ecosystem programs.

Capacity Building Platform

Get access and applications to events,
competitions, and workshops in both
countries followed by partnerships with
co-working spaces and accelerators.
25 Startup India Kit
 Portugal Israel Netherlands Singapore

Sweden United Kingdom Japan S.Korea

Russia Brazil Finland Croatia

Canada UAE Qatar Switzerland

To know more about these bridges,

scan this QR code.

Startup India Startup India Showcase is an online discovery

Showcase platform for the most promising startups of
the country. These innovations span across
various cutting-edge sectors such as Fintech,
Enterprise Tech, Social Impact, HealthTech,
EdTech, among others. 150+ startups have
been onboarded on the Startup India Showcase
platform and received opportunities to be a
part of the Expo 2020 Dubai, India-Sweden
Innovation Day, and InFinity Startup Exhibition,
France.

To download the blockchain enabled

To visit scan
certificate, the this
innovative
QR code. startups
showcased in the platform, scan this
QR code.

Startup India Kit 26

Blockchain- The Department for Promotion of Industry and
based Internal Trade (DPIIT) has launched a Blockchain-
Certificate based Certificate Verification platform to
Verification enable instant access and verification of the
Platform certificates issued to recognised startups
through the Startup India portal. The platform
can be utilised by Government departments,
PSUs, Banks, and Investors to verify the
authenticity of the information submitted by
startups. This platform is the first step towards
introducing emerging technologies within
existing government frameworks to transform
traditional processes.

To generate the Block chain based

certificate, scan the QR code

Idea Bank Looking for an idea for your startup?

To guide the budding entrepreneurs through

their startup journeys, Startup India has
developed an idea bank highlighting some
of the problems across varied sectors. This
idea bank guides the startups to brainstorm
innovative ideas to tackle the various problem
statements listed on the website.
To explore the ideas in the idea bank,
scan this QR code.

27 Startup India Kit

 What is a
Startup?

Startup India Kit 28

An entity shall be considered as a
Startup:

If it is incorporated as a private
limited company (as defined
in the Companies Act, 2013)
or registered as a partnership “Never
dream of
firm (under section 59 of the
Partnership Act, 1932) or a

becoming
limited liability partnership
(under the Limited Liability

something.
Partnership Act, 2008) in India.

Up to ten years from the date of

its incorporation/registration.
If you
If its turnover for any of
the financial years since dream,
dream
incorporation/registration has
not exceeded INR 100 crore.

If it is working towards of doing

something!”
innovation, development or
improvement of products or
processes or services, or if it is
a scalable business model with
a high potential of employment
generation or wealth creation.
SHRI NARENDRA MODI
Provided that any such entity Hon’ble Prime Minister of
formed by splitting up or India
reconstruction of a business
already in existence shall not
be considered a ‘Startup’.

To streamline the process of

recognition of startups, the
guidelines for recognition of To download
Startups have been reformulated the recognition
and supplemented in line with guidelines, scan
notification. this QR code.

29 Startup India Kit

 DPIIT-
Recognition

Startup India Kit 30

Get DPIIT-Recognised!
Startups can apply to get recognised by Department for Promotion
of Industry and Internal Trade (DPIIT) to avail numerous benefits:*

89,000+ Startups recognised by DPIIT

47% Recognised startups have atleast one women

Director

665 Districts with atleast 1 recognised startup

9.2 Lacs Jobs reported by 88,000+ DPIIT-

Recognised Startups

Top 3 States Maharashtra,

Karnataka, Delhi

Top 3 Sectors
IT Services, Healthcare
and Lifesciences,
Education

*Data as of 31st March, 2023

31 Startup India Kit

Get Recognised & Avail Benefits

STEP 01
Visit www.startupindia.gov.in

STEP 02
New User
Click on ‘Register’ and provide
details OR Simply register using
any of your social media accounts

Existing User
Login using your credentials (Go
to step 4)

STEP 03
Provide OTP and other details
like, startup as type of user, name
and stage of the startup, etc.

Congratulations!
Your startup profile is created

Startup India Kit 32

 STEP 04
Go to ‘Get Recognised’ directly
(new users) OR

Dashboard > DPIIT Recognition

(existing users)

STEP 05
On the ‘Recognition Application
Detail’ page, click on ‘View
Details’ under the Registration
Details section

STEP 06
Fill up the ‘Startup Recognition
Form’ and click on ‘Submit’

33 Startup India Kit

What Do You Need?
Incorporation/Registration Certificate

Director details

Patent and trademark details (optional)

PAN Number

A proof of concept (website link/video/pitch deck) for startups

in Validation stage. For Early Traction and Scaling stage, it
is necessary to provide a video or pitch deck in addition to a
company website. Ideation stage startups are not mandated to
submit a proof of concept.

No Requirement Of:
Letter of Recommendations

Sanction Letters

Udyog Aadhar

MSME Certificate

GST Certificate

Startup India Kit 34

At idea
Stage?

1 2 3
Simply apply without any
proof of concept and get
recognised. Update later
when you reach validation/
early traction/scaling stage.
Got funded or
recognised?

Tell us by updating
your proof of funding,
awards, and
recognitions received.
Applied for patent/
trademark?

Strengthen your
application by providing
us your patent, trademark,
copyright, plant variety
details.

Submit your application and it will be processed within 48-72 working hours

35 Startup India Kit

Startup India
Marquee Programs
National Startup Awards (NSA)
The Department for Promotion of Industry and Internal Trade (DPIIT)
had conceived the National Startup Awards to recognize and reward
outstanding Startups. The National Startup Awards recognise
exceptional startups across various categories that provide innovative
solutions which lead to large-scale employment and sustainable
economic development.

The first edition of the National Startup Awards was concluded in

October 2020. 36 startups, 1 incubator, and 1 accelerator were
recognised as winners in their respective categories. They were
felicitated by the Hon’ble Minister for Commerce & Industry,
Consumer Affairs, Food & Public Distribution and Textiles, Shri Piyush
Goyal, on 06th October 2020.

As a successor to the first edition, National Startup Awards 2021 was

launched on 21st December 2020 to reward outstanding startups and
enablers that have demonstrated extraordinary impact on society.
A total of 46 startups, across sectors and special categories, along
with 1 incubator and 1 accelerator were recognised as winners of
National Startup Awards 2021. They were felicitated by the Hon’ble
Minister for Commerce & Industry, Consumer Affairs, Food & Public
Distribution and Textiles, Shri Piyush Goyal, on 15th January 2022.

With two editions successfully concluded, the third edition of the

coveted National Startup Awards was launched on 1st February 2022.
In line with Azadi Ka Amrit Mahotsav, National Startup Awards 2022
acknowledges startups and enablers who have been instrumental

Startup India Kit 36

in revolutionising the development story of India. Startups and
enablers demonstrating exceptional capabilities not just in terms
of financial gains but also for the measurable impact on society are
being recognised by the third edition of National Startup Awards. In
this third edition, 42 startups, 2 incubators, and 1 accelerator were
recognised as winners in their respective categories.

The National Startup Awards is more than just an award. One of the
key objectives of this award is to handhold the winners and finalists
through a series of initiatives to holistically support them as they
navigate towards greater success.

To know more about National Startup Awards,

scan the QR code

37
State Ranking Framework (SRF)
The States’ Startup Ranking is a yearly capacity building exercise
created and released by DPIIT that evaluates all of India’s States and
Union Territories on their efforts to build an ecosystem conducive to
startup growth. The exercise leverages the concept of competitive
federalism to propel states to implement best practices, creating
avenues for knowledge exchange as well as building capacities of
various enablers which are pivotal to the ecosystem.

Launched in 2018, the States’ Startup Ranking Framework aims to

augment the startup ecosystem in the States and Union Territories
across the country by focusing on initiatives and policies undertaken
in respective jurisdictions. All SRF editions have been successful in
defining Reform Areas and Action Points which have proved essential
in providing regulatory, policy and economic support to startups and
stakeholders of the ecosystem. The Framework has also introduced an
effective Feedback Collection Mechanism from beneficiary startups
and incubators present across states and Union Territories to share
their experience in handholding and support that they have received
from respective governments.

To know more about State Ranking Framework,

scan the QR code

38 Startup India Kit

Department of Promotion of Industry and Internal Trade (DPIIT)
declared 16th January National Startup Day” to acknowledge and
support the invaluable contribution of Indian entrepreneurs towards
the growth of the country’s economy and to recognise India’s thriving
entrepreneurial ecosystem.

To commemorate the initiative officially completing 7 years this year,

the wave of entrepreneurship in India and the National Startup Day
on 16th January 2023 – a weeklong celebration ‘Innovation Week’
was organised by DPIIT across the length and breadth of India. The
Innovation Week witnessed participation from across the country,
including emerging cities and states, in different formats – hybrid,
offline and online. Ecosystem experts and enablers from across
the nation joined us in varying capacities and contributed to the
celebration of the special day.

Few of the initiatives taken during the week were: Industry focussed
Webinars, Ministry Roundtable, MAARG Masterclass, ASCEND
Sangam, Women for Startups workshop, partner events across 75
centres in India, and the National Startup Awards 2023.

“I see startups, technology, and innovation

as exciting and effective instruments for
India’s transformation”
SHRI NARENDRA MODI
Hon’ble Prime Minister of India

Startup India Kit 39

MAARG Portal
Startup India is focused on catalysing the startup culture and building
a strong and inclusive ecosystem for innovation and entrepreneurship
in India. In this context, the MAARG portal - Mentorship, Advisory,
Assistance, Resilience and Growth, is launched to facilitate mentorship
for startups across diverse sectors, functions, stages, geographies,
and backgrounds. The MAARG platform aims to provide sector
focused guidance, handholding, and support to startups throughout
their lifecycle. It is a platform that facilitates intelligent matchmaking
between the mentors and their respective mentees. It promotes
an outcome-oriented mechanism that allows timely tracking of the
mentor-mentee engagements.

Startups can now effectively connect with academicians, industry

experts, successful founders, seasoned investors, and other experts
from across the globe, through Artificial Intelligence (AI) based
matchmaking, to get personalised guidance on growth and strategy.
The key features of the portal include customisable mentorship
programs for ecosystem enablers, cohort based programs, mobile-
friendly user interface, recognition and incentives for contributing
mentors, video and audio call options, etc.

As of January 2023, 690+ mentors from across the country and the
globe are registered on the MAARG Portal.

To know more about MAARG, log in to- https://maarg.startupindia.

gov.in/

To know more about MAARG Portal, scan the QR code

40 Startup India Kit

Women For Startups: Startup
India State Workshops for Women
Entrepreneurs
To cater to the unique challenges faced by women entrepreneurs
across the country and ensure curated support to aspiring and existing
women entrepreneurs, Startup India has launched the Women for
Startups: Startup India State Workshops for Women Entrepreneurs.
Under the program, physical workshops are being conducted for
existing and aspiring women entrepreneurs across states and Union
Territory in India. The workshops are primarily focused on capacity
building, knowledge exchange, brand building and highlighting
local women role models.

Additionally, identifying fundraising as a major challenge faced by

women entrepreneurs, the workshops are especially geared towards
building the capacity of women to drive funds for their startups.
Each workshop therefore includes a mock-pitching opportunity for
participants followed by exclusive feedback by ecosystem experts.
Further, the workshops also facilitate creation of state-specific groups
and networks of women entrepreneurs.

For more on the workshops and Startup India’s efforts on women in

the startup ecosystem
https://www.startupindia.gov.in/content/sih/en/women_
entrepreneurs.html

To know more about State Ranking Framework,

scan the QR code

Startup India Kit 41

StartupShala
StartupShala, the Startup India Accelerator Program is a unique
initiative by Startup India. Startup India Accelerator Program,
StartupShala, is a 3-month long accelerator program for early-stage
startups to provide them access to knowledge, network, funds, or
guidance required to scale up.

Each cohort of the program will be focussed on a particular sector, first

one being clean-tech and 20 startups per cohort will be handpicked
by experts through an open call for application. All shortlisted
startups will be certified on successful completion of the program.
We will have 2 sector-focused cohorts each year.

Key Highlights
The highlights of the program to make it stand out:

No equity/stake in the company.

12-15 hours of one-on-one mentorship per startup based on their

domain. Working hands-on with mentorship on the challenges
the startups are facing + 1 need-basis post-program review
session.

UPSCALE - unique shadow program with leaders of today so

that you can become leaders of tomorrow.

Startup India, DPIIT Certificate upon graduation along with a

detailed evaluation report.

8 industry-oriented sessions with curriculum designed

& taught by experienced enterprise entrepreneurs & experts
on wide range of subjects such as product market fit, getting
validation, preparation for fundraising and more. Short brain-
storming exercise in each session as a take-away.

Startup India Kit 42

Develop an essential set of C-suite leadership skills through
targeted programs in cognitive, social and behavioral skills to
enable entrepreneurs to succeed in the current VUCA world.

Partners to help us with probono services & facilities like office

space, lab access, memberships, mentorships, etc.

Mock Pitching Marathon to help you perfect your pitch for the
demo day. Opportunity to pitch and pilot with the best pool
of investors, mentors, corporates and government departments
providing startups with funding opportunity from marquee
investor pool on demo day.

Government connects on need-basis.

Network with the pool of best entrepreneurs in

the country.

43
 Glossary

44 Startup India Kit

 A Accelerator Angel Group Angel
An accelerator An angel group is Angel rounds are
is typically a a network of angel the first round that
3–4-month investors who a company may
program for invest collectively go through. Angel
startups at early in small startups or investors, friends,
traction and entrepreneurs. They and/or family may
scaling stage. It typically invest in invest in an angel
is a process of angel, seed, and round to get a new
intense, rapid, sometimes Series A company off the
and immersive rounds. ground.
education aimed
at accelerating
the growth of
the startup. The
accelerator may
take a set amount
of seed equity
from the startups
in their cohorts
in exchange
for capital and
mentorship.

C Convertible Note Co-working Space

It is a loan where an A co-working space
investor provides is a company that
cash to a startup provides a shared
company, and the working environment
investor gets an for teams working
option to convert typically for different
the debt to equity employees, in the
in the company. same office.

Startup India Kit 45

 I Incubator IPR
An incubator is a The right of a person
workspace created or a company to
to offer early-stage exclusively use its own
startups access to plans, ideas, or other
all resources intangible assets
they need under without the worry of
one roof. They competition, at least
provide office for a specific period of
space, mentoring, time. These rights can
business services, include copyrights,
funding, and patents, trademarks,
networking and trade secrets.
opportunities to These rights may be
the incubatees. enforced by a court.

P Product Crowdfunding
A product crowdfunding round is where a company will provide its
product in exchange to raise capital. This kind of round is also typically
completed on a funding platform.

S Seed Funding
Seed capital is the initial funding used to begin the creation of a
business or a new product. Generally, seed capital is used to develop a
business idea to the point that it can be presented effectively to venture
capital firms that have large amounts of money to invest.

T Technology Transfer Office

A product crowdfunding round is where a company will provide its
product in exchange to raise capital. This kind of round is also typically
completed on a funding platform.

V Venture Capital
Venture Capital firms invest in startups at a later stage. Startups with
a potential to grow, need a certain amount of investment. Wealthy
investors like to invest their capital in such businesses with a long-term
growth perspective. This capital is known as venture capital and the
investors are called venture capitalists.

46 Startup India Kit

 Startup
Funding Cycle

Startup India Kit 47

 Stages And Sources
Pre-Seed
Working on ideas/prototypes.
Fund sources: Family, friends, grant, B-plan
competitions, collateral-free debt.

Seed
Product/service launched in market
Fund Sources: Angel investors, pitching
competitions, collateral-free debt.

Series A
Product/service gaining market traction
Fund Sources: Venture funds,
bank loan.

Series B,C
New consumers and rapidly increasing revenues
Fund Sources: Private Equity firms, Investment
firms, Venture funds

IPO
Established customer base and stable revenues
Fund sources: Stock market, acquisition by larger
corporations

To know more about funding, scan the QR code

48 Startup India Kit

Startup India Kit 49