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TELANGANAASPIRING LEADER

STATES’ STARTUP RANKING 2019

TELANGANA | ASPIRING LEADER2

Table of

Contents

1. Overview of State Startup Ecosystem ...................05

2. Snapshot of State Performance ..............................08

3. Pillar Wise Assessment ...............................................09

3.1. Institutional Support ..............................................................09

3.2. Simplifying Regulations .....................................................12

3.3. Easing Public Procurement ............................................14

3.4. Incubation Support ................................................................15

3.5. Seed Funding Support ........................................................17

3.6. Venture Funding Support ................................................18

3.7. Awareness and Outreach ...............................................19

5TELANGANA | ASPIRING LEADER

OVERVIEW OF STATE STARTUP ECOSYSTEM

The Government of Telangana has been playing the role of a catalyst in creating an enabling environment for innovators and startups to flourish and grow. The state had launched its startup policy by way of an Innovation Policy in 2016 with an aim to promote innovation and entrepreneurship, leveraging upon its natural demographic assets as well as its base of skilled technology and research professionals. The state has a unique model in the country for developing a robust startup ecosystem and has a mission to foster an innovation driven economy.Telangana is one of the most preferred business destinations for Electronics, Information Technology (IT) and Pharma in India, ranking second in terms of IT exports. The original IT boom was centered around Hyderabad, with large companies such as Microsoft, Oracle, Tata Consultancy Services etc. establishing their offices here, attracted by the combination of a skilled work force and great infrastructure. In addition, there is a cluster of world-class research centers in the city, such as Central Pharma Research Institute, the Defence Research Development Organisation laboratories and numerous world-class pharmaceutical labs.The state is continually striving to maintain this position and establish itself as the most preferred technology investment destination in the country, by creating a strong entrepreneurial ecosystem in the state. To progress along these lines, the government has established and supported numerous eco-system enablers for startups and entrepreneurs such as IMAGE Tower, T-WORKS, T-HUB, RICH, T-Fiber and TASK.

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THE INNOVATION POLICY OF THE STATE IS BASED AROUND FIVE BROAD PILLARS:

Developing physical

infrastructure & programmes management

capabilities

Creating sustainable

funding models

Encourage startups in the

Rural and Social Enterprise space

Development of human capital, by creating the

right environment

Proactive engagement

with industry to continuously

promote innovation


SOME OF THE KEY ASPECTS OF THE STARTUP ECOSYSTEM IN TELANGANA ARE:

Develop one million sq.ft. of dedicated workspace for startups in the next five years

T-Hub also known as Technology Hub is a unique initiative between the state, three of India’s leading academic institutes (The International Institute of Information Technology, Hyderabad, The Indian School of Business, Hyderabad and The National Academy of Legal Studies and Research, Hyderabad) and key private sector leaders. The facility, currently, has a total area of 70,000 sq.ft and would expand to 3,00,000 sq.ft. It would house 900+ startups and it would be completed within the next five years with an end-to-end ecosystem that would provide funding, network and mentorship to entrepreneurs.

Partner with 20+ global accelerators/ incubators to build facilities in a Public-Private Partnership (PPP) mode

THE GOVERNMENT MENTOR PROGRAMMES (GMP) is an initiative started by the state’s Innovation Cell to bridge the gap between the state and startups. The objective of the pogrammes is to assist entrepreneurs considering government as a potential client to establish connects and seek mentorship from relevant government officials.

The Technology Entrepreneurship Programmes (TEP) is offered by the Indian School of Business in partnership with the Telangana Academy for Skill and Knowledge. It is a semi-virtual training programmes for third and fourth year engineering students, providing guidance in creating technology enabled products & services in order to improve entrepreneurship skills. This programmes has seen a total enrolment of 2157 students from January 2016 till date. The primary goals of TEP are to:o Foster entrepreneurial mindset in engineering studentso Link entrepreneurial and innovative behaviour in the field of education and career pathwayso Mentor and support students to launch their own ventureso Provide an enabling environment for engineering students to create investable technology-

based startups

LOKAL APP: This feature shares stories of the innovators and describes their innovation in detail. Through the videos, innovators talk about how an idea was conceded to innovate, challenges faced by them, support leveraged to assist them during the journey and what they aim to achieve in the future.

INNOVATION YATRA 2020: Telangana Innovation Yatra (TIY), a four-day journey that aimed to make participants explore the real-time frugal innovations and expand their knowledge beyond the horizons of traditional ideation

In 2018, the state and Data Security Council of India partnered to set-up a Cyber Security Center of Excellence (CoE). The Coe based on a PPP model would accelerate and strengthen the ecosystem by focusing on strategic areas including, innovation, entrepreneurship and capability building.

Build TWO INCUBATORS in Tier II locations of the state


ACCELERATOR PROGRAMMES: T-Hub and Facebook intend to partner and have a deep collaboration in the area of Augmented Reality (AR)/ Virtual Reality (VR) Technology. The top five to six startups selected through this acceleration programmes would work with Facebook, T-Hub teams and mentors, to collaborate and prioritise the solution. All interventions would happen at T-Hub Hyderabad. T-Hub website provides details about the programmes.

IN ADDITION TO THE ABOVE, SOME OTHER KEY INITIATIVES UNDERTAKEN BY THE STATE INCLUDE:

TEACHER TRAINING PROGRAMMES

RURAL INNOVATOR SERIES

STUDENT INNOVATOR SERIES

INTINTA INNOVATOR

T-200 FEATURE SERIES


SNAPSHOT OF STATE PERFORMANCE 02

Relative Performance of the State

Performance of the Best State in the pillar

The following representation details status of Telangana’s implementation on each of the 7 pillars of assessment. Data presented below is the percentile score.

Telangana has been evaluated on 7 distinct pillars which largely contribute to the growth of the startup ecosystem in Telangana. The representation as expressed above depicts the relative performance of Telangana in each of the seven pillars in comparison to the performance of the best state in that pillar.

As shown above, the range of impact generated through ‘Institutional Support’, ‘Easing Public Procurement’ as well as ‘Simplifying Regulations’ require enhancement. Although significant efforts have been made to enhance the startup ecosystem, the initiatives undertaken towards ‘Seed Funding Support, ‘Venture Funding Support’ and ‘Incubation Support’ call for improvements since results have been negligible in these pillars.

Detailed analyses of this snapshot can be viewed in the subsequent section, with extensive insight into the initiatives taken by the State to uplift its startup ecosystem.

Venture Funding Support

0%

Incubation Support

0%

Seed Funding Support

0%

Institutional Support

15%

Awareness and Outreach

1%

Simplifying Regulations

37%

Easing Public Procurement

34%


PILLAR-WISE ASSESSMENT

• The startup policy of the state is well structured, highlighting the sector agnostic approach i.e. the incentives offered are not restricted to specific sectors. Telangana State Innovation Cell (TSIC) (www.teamtsic.org) is the official website for all information relating to startups in the state and also has an online registration facility. The state’s startup policy has incentives defined within it. The policy details are available on the state’s portal.

• The state has an online mechanism to connect mentors to startups. This includes a list of mentors registered on the state startup portal, along with their contact details. The Information Technology, Electronics and Communication (ITE&C) Department, Government of Telangana is the nodal department and the Principal Secretary is the nodal officer.

• Few of the key initiatives of the of state support system for startups are T-Hub. The women focused Incubation Center called WE-Hub. It provides women-led startups with state-of-the-art infrastructure, strong virtual mentoring programmes, services for conducting events and other incubation services.

KEY FACTS

1. INSTITUTIONAL SUPPORTInstitutional support envisages provisions and execution of the state’s startup policy including information on the nodal team within the state, online implementation system, registration of mentors and their listing on the state startup portal. The states are evaluated based on the laid provisions along with parameters of availing benefits through state intellectual property rights portal, establishing partnerships with institutions, providing special incentives for women led startups and entrepreneurship.

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KEY STRENGTHS

DEDICATED TEAM FOR GUIDING STARTUPS

• The state has a dedicated nodal department with a nodal officer, who are critical to foster state level innovation-driven entrepreneurial practices. The nodal department is responsible for resolving grievances, preparing guidelines, setting up mechanisms for stakeholder interaction, supporting and handholding startups.

• Key council members are:

− Chief Innovation Officer, Telangana State Innovation Cell (TSIC)

− Chief Executive Officer, T-HUB

− Chief Executive Officer, WE-HUB

− Director General, Research and Innovation Circle (Research and Innovation Circle of Hyderabad (RICH)

− Chief Execution Officer, Telangana Academy for Skill and Knowledge

− Chief Executive Officer, T-Works

− OSD, Emerging Technologies, ITE&C Department

STRONG INTELLECTUAL PROPERTY (IP) SUPPORT

• The state has a robust IP support system in place to provide assistance to startups in terms of provision of subsidies for filing patents/trademarks.

• The state has designated T-Hub as an anchor to provide shared services, such as, legal, accounting, intellectual property, design etc.

• The state’s startup policy provides various provisions to extend IP rights and essential support to startups. Following benefits related to IP support are provided in the policy:

− Reimbursement of cost of filling and prosecution of patent application to the incubate startup companies subject to a limit of INR 2 lakh per Indian patent awarded

− Reimbursement of up to INR 10 lakh for foreign awarded patents on a single subject matter. The reimbursement is done in two stages, i.e., 50% after the patent is filed and the balance after the patent is granted

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www.teamtsic.org


ENCOURAGING WOMEN ENTREPRENEURSHIP

• As per the state’s startup policy, the startups where more than 50% of the promoters are women, are eligible to get a monthly sustenance allowance of INR 12,000.

• The Global Entrepreneurship Summit (GES) held in November 2017 in Hyderabad with the theme, “Women First prosperity for all” further strengthened the state’s focus on women entrepreneurs.

• The state is committed to empower women entrepreneurs, through the women focused Incubation Center called “WE-Hub”, from various sectors to launch startups and has provided support through funding, mentoring, strategy and for growth. The objectives of WE-Hub are to:

− Provide access to support from government

− Incubation support to women entrepreneurs

− Talent/skill development to catalyse the growth of skilled workforce

COHESIVE PARTNERSHIPS TO FOSTER GROWTH OF STARTUP ECOSYSTEM

• The state has more than 25 effective partnerships with corporates. The services provided by the state partners include incubation programmes, mentoring, market access programmes, corporate connect, recruitment support, challenges/hackathons virtual membership and other initiatives.

• The state has forged partnerships with various corporates, such as, OTIS, Stanley, Black & Decker, Facebook, and other partners. The list of partners and details of partnerships are available on the state’s startup portal.

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The benefits provided by WE-Hub are

Below is the list of partners bifurcated under each initiative, the details of each are mentioned on the portal:

Peer community: Community of women founders for promoting peer-to-peer learning and collaboration.

Global market access: Platform for growth stage startups with opportunities to access product fitment and readiness to new markets across the globe.

Mentorship: Over 50 experts from various domains and expertise.

Industry connect: Access and curated connects between global companies and high potential WE-Hub selected startups.

Access to workshops: Access to specifically designed workshop focusing on different aspects of business.

Customised incubation programmes: Selected startups to undergo eight months curated and customised incubation programmes with targeted interventions.

Investor connect: WE-Hub brings together top Indian Private Equity (PE)/ Venture Capital (VC)/seed/angel funds and promising entrepreneurs in any industry.

Government liasioning: Information about various initiatives and opportunities and helps women founders to make use of various opportunities.

Access to events: Selected startups get access to all WE-Hub related events and explore networking opportunities.

The first of its kind and only state run platform for women entrepreneurs

Research and Innovation Circle of Hyderabad

Incubation programmes which is largest of its kind in the country and the international programmes serve as a gateway for startups to look beyond borders


WAY FORWARD

The state needs to give importance to this pillar in order to further strengthen the startup ecosystem. The state could prioritise actions required in three categories: short, medium and long term. Action required in each of these categories are summarised below: -

SHORT TERM ACTIVITIES (1-3 MONTHS)Activities in this category can be achieved with minimum efforts. Through dedicated efforts, results can be achieved within one to three months. Activities suggested under this category are as follows:

Improved and robust startup policy • The ‘startup’ definition may be included in the startup policy of the state to create transparency for the ongoing development of the

startup ecosystem in the state.

• The process for registration of startups may be included in the policy. This would ensure transparency and enable the startups to register online with ease.

MEDIUM TERM ACTIVITIES (4-6 MONTHS)The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. Activities suggested under this category are as follows:

Establish an online implementation system• The startups could have the option to track their application online. The status of the application would support in knowing the progress

and submit any additional required documents with ease.

• The state is also suggested to update its online dashboard for startups more regularly. The number of startups registered, and the number of incubators supported could be comprehensive and specific to month-to-date or year-to-date.

• Once the startup is registered successfully, they could be issued a registration certificate with a Unique Registration Number (URN) to the startup.

• A startup helpdesk on the portal with the ability to resolve queries via phone, e-mail and an online query resolution system is highly recommended

• Details of partnerships along with contact details could be available on the portal. Also, offerings by partners may be made available on the portal to assist state-based startups in developing awareness about the eminence of startups.

Connect Startups to a Mentor Network• The state is recommended to have an online mechanism to connect mentors to startups .

• The portal may also include a list of mentors registered on the portal along with their contact details.

• The portal could create a login based system allowing startups and mentors to correspond, schedule meetings and receive recommendations

Support from various departments• The other departments in the state government may design policies along with relevant orders and schemes to support startup culture

in the state.

• The other departments of the state may promptly notify the important and recurring events from their departments on the portal so as to encourage maximum participation and leverage the collaborated efforts towards the entire ecosystem.


2. SIMPLIFYING REGULATIONSSimplification of regulations considers mandatory requisites for state level approvals and clearances for registering and operating a business or startup online. In order to make compliance for startups friendly and flexible, simplifications are required in the regulatory regime. It encapsulates regulatory issues faced by registered startups which have been identified through an interactive online mechanism subject to approving action by regulatory agencies. The states are evaluated based on the support provided to startups by introducing a list of rules, regulations or Acts in the state, including amendments in the Acts and regulations with requisite details to create a conducive environment for the state’s startups.

INTERACTIVE BUSINESS COMPLIANCE AND INFORMATION MECHANISM FOR REGULATORY ISSUES

• The state has an interactive mechanism in place to address the regulatory issues faced by startups.

• “Emerging Technologies Wing” initiated by the state in the year 2017 is accountable to look after the new/disruptive startups wherein regulatory issues encountered by the startups are resolved.

• The LinkedIn URL (https://www.linkedin.com/company/et-itec-gots/about/) is the online mechanism that has been implemented by the state for redressal of regulatory issues faced by new/disruptive startups. It is managed by the “Emerging Technologies Wing of ITEC & C Department”.

FAVORABLE REGULATORY ENVIRONMENT FOR STARTUPS

• Some of the amendments/Acts in supporting the startup initiative are:

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In order to promote startup ventures with the prime objective to create more employment opportunities, many initiatives to simplify regulatory provisions, including an online interactive mechanism for all state approvals and clearances have been conceptualised.

KEY FACTS

KEY STRENGTHS

INNOVATION POLICY 2016Innovation Policy 2016 to help the startups by creating an environment that is truly conducive to innovation, experimentation, risk-taking, and to entrepreneurship across all levels of society.

BLOCKCHAIN POLICY 2019 Blockchain Policy 2019 is helping startups by making , the capital of Telangana, Hyderabad as one of the top ten blockchain cities in the world.

TS DRONE POLICY 2019TS Drone Policy is introduce to leverage the emerging technologies. The state’s vision is to build a vibrant drone ecosystem accelerating the economic growth in the state of Telangana. This policy is based on the four main pillar• Developing Talent Pool

• Supporting Infrastructure

• Promoting Research and Innovation

• Enabling Collaboration and Building Community

https://www.linkedin.com/company/et-itec-gots/about/

https://www.linkedin.com/company/et-itec-gots/about/


WAY FORWARD


MEDIUM TERM ACTIVITIES (4 –6 MONTHS)The activities suggested in this category are important and will take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. Activities suggested under this category are as follows:

Invite or identify regulatory issues and amendment in rules and regulations • A separate tab titled “Regulatory Issues” could be made available on the state’s startup portal.

• The state is also suggested to provide government order/notification detailing the mechanism to invite & identify regulatory issues faced by startups.


3. EASING PUBLIC PROCUREMENTEase in public procurement simplifies criteria to ensure participation of startups in government tenders. The states are evaluated based on the support provided to startups in resolving issues related to state public procurement as norms of Earnest Money Deposit (EMD), prior experience, and prior turnover which prove to be barriers for participating startups. Easing of such norms enable startups and entrepreneurs to avail exemptions and share an equal platform with established organisations.

The state has made requisite relaxation for EMD or bid security in order to encourage startups to participate in public procurement. The state through a resolution in April 2018 has removed the criteria of “submission of EMD”.

KEY FACTS

PROACTIVE MECHANISM TO ENCOURAGE STARTUPS TO PARTICIPATE IN PUBLIC PROCUREMENT

• The state has provided full exemption to startups from submitting EMD.

• The state has also provided 15% relaxation to the startups submitting financial quotations pertaining to procurement, subject to meeting quality and technical specifications.

KEY STRENGTHS

WAY FORWARD


SHORT TERM ACTIVITIES (1-3 MONTHS)Activities in this category can be achieved with minimum efforts. Through dedicated efforts, results can be achieved within one to three months. Activities suggested under this category are as follows:

Government order/notification for relaxation for ‘prior experience’ and ‘prior turnover’• The state could provide 100% relaxation to startups in criteria of ‘prior experience’ and ‘prior turnover’ in public procurement. This would

help startups in delivering quality output and cost-effective solutions.

• The state may release the government order/notification to increase awareness of public procurement guidelines amongst the startup fraternity.

MEDIUM TERM ACTIVITIES (4 –6 MONTHS)The activities suggested in this category are important and would take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. Activities suggested under this category are:

Number of startups awarded work orders• The state is encouraged to consider increasing the volume of work orders awarded to startups in order to encourage entrepreneurial

development in the state.

• The state may also consider organising annual events where startups would demonstrate their capabilities directly to the government and subsequently take part in public procurement activities.

Grievance redressal mechanism for startupsA developed mechanism is suggested for resolving grievances of startups specifically related to public procurement. A dedicated online portal could be developed and there could also be an offline mechanism in the nodal department for resolving issues related to procurement.


4. INCUBATION SUPPORTIncubation support is an integral element of the startup ecosystem that supports entrepreneurs to grow their businesses and assists new startups to succeed. In order to promote startups, the state governments collaborate with organisations, corporates or industry associates to establish incubators, to support startups in the form of capital expenditure or operational expenditure. The evaluation is based on setting up of incubators supported by the state governments to release funds to the startups, thereby creating a unique mechanism to provide subsidised incubation and operate acceleration programmes in partnership with the industry.

The state has the Technology Incubation Center (T-hub) at International Institute of Information Technology (IIIT) Hyderabad. It supports and promotes technological innovations occurring in the Hyderabad startup ecosystem. A state-of-the-art building with 70,000 sq. ft. height, called ‘Catalyst’ brings together partnerships from different verticals to help startups shorten the sprint towards their goal. One of the most popular programmes run by catalyst is Lab32.

KEY FACTS

ROBUST INCUBATION SUPPORT

• T-Hub aims to promote entrepreneurship in the state. Catalyst operates on a PPP model between the Government of Telangana, IIIT-H, Indian School of Business (ISB), National Academy of Legal Studies and Research (NALSAR) and key private sector leaders. It also hosts regular talks, networking events, workshops, mentoring sessions and more for the benefit of all its members.

− Taking cue from the success of T-Hub, the state aims to develop world-class physical infrastructure that would provide conducive environment for ideas to originate, scale-up and see business fruition.

− T-Hub’s state-of-the-art startup programmes are designed to foster a culture of innovation and entrepreneurship through access to cutting-edge technology and a network of corporates, mentors, investors and service providers.

ASSISTING STARTUPS THROUGH INSTITUTIONAL AND INTERNATIONAL PARTNERSHIPS

• T-Hub would support technology-related startups across multiple sectors and its mission is to create one of the most vibrant entrepreneurial communities in the world which would encourage and fuel more startup success stories in India. T-Hub’s major responsibilities would be to :

− Attract the best startups and entrepreneurial organisations globally

− Work with an extensive network of partners to help entrepreneurs launch and scale innovative companies

− Equip startups with entrepreneurship skills required to succeed, using methodologies that transcend traditional learning

− Function as the nodal agency to lead or support entrepreneurship efforts of the government as per the need. Tasks include but not limited to helping educational institutions in setting up their incubators, conducting statewide events, participating in international roadshows to attract new-age companies to the state.

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KEY STRENGTHS

The state administers the following forms of support through T-Hub:

MENTORSHIP

CORPORATE CONNECTS AND NETWORKING OPPORTUNITIES

WORKSHOPS AND SEMINARS

INVESTOR CONNECTS


WAY FORWARD

The state needs to give importance to this pillar in order to further strengthen the startup ecosystem. The state could prioritise actions required in three categories: short, medium and long term. Action required in each of these categories are summarised below:

MEDIUM TERM ACTIVITIES (4-6 MONTHS)The activities suggested in this category are important and would take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. Activities suggested under this category are as follows:

Setting up of new and upgrading existing incubators• The state could also support incubators by providing financial grant for capital expenditure by covering the initial cost. Additionally, the

state may explore alternative models of incubation support, such as, provision of rent-free space (on lease) for setting up incubators.

Increasing seats allocation for Incubation• The state has only one seat allotted for incubation; therefore, it may explore the opportunity and back it up by a certificate from

incubators specifying the number of seats allocated to start ups.

Promote subsidised incubation• The state may explore the opportunity to partner with private incubators in supporting the reimbursement of the cost of incubation.

• State is encouraged to support more startups through provision of subsidised incubation.

Encourage acceleration programmes• The state could consider developing more institutions to organise acceleration programmes in association with industry. In addition,

the state could encourage enrollment of startups in acceleration programmes to provide startups with the opportunity to connect with investors, engage in skill development and obtain knowledge support.


The state has launched an early stage investing vehicle named the Telangana Innovation Fund (T-Fund) in collaboration with leading global investors and T-Hub, with an initial target of INR 2000 crore. Additionally, a T-SEED fund, to fund startups in the seed stage and a first of its kind initiative, a “Phoenix fund’ in collaboration with the private sector has also been created by the state to encourage startups.

KEY FACTS

SPECIAL SCHEMES OFFERING SEED FUNDING SUPPORT TO STARTUPS

• The scheme provides T-SEED fund to innovators in the seed stage. This fund with an initial corpus of INR 250 crore is aimed at encouraging new startups who need early stage funding to work on their research discoveries, college project ideas etc.

• The fund also aims to ease the costs incurred at an initial stage such as company registration, patent filing, quality certifications, travel etc. It also provides the support to innovators by offering mentor services, incubation facilities, sustenance allowance, and product development support to startups.

KEY STRENGTHS

WAY FORWARD

The state needs to give importance to this pillar in order to strengthen the startup ecosystem. The state could prioritise actions required in three categories: short, medium and long term. Action required in each of these categories are summarised below:-

SHORT TERM ACTIVITIES (1-3 MONTHS)The activities suggested in this category are important and would take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. Activities suggested under this category are as follows:

Outline seed funding guidelines • As the seed funding would be provided to startups, there could be a mechanism to follow up on the progress made by the enterprise

(except for the startups that will be commercialised). This may be in the form of timely feedback mechanisms and follow up reports. This would enable the government in outlining the success stories.

• There could be a well defined seed funding guidelines which may clearly state eligibility criteria, extent of seed funding and application procedure. The guidelines document could be supported by a list of registered startups.

Online facility to avail seed funding The state could have a provision for online facility to avail seed funding. There could be an online application system for startups to avail seed funding, a mechanism for online tracking of application status and approvals to startups could be communicated online, which would aim to simplify the seed funding disbursement process.

Enlisted seed funding beneficiaries• The state is encouraged to increase the seed funding support in order to to boost the ecosystem of startups and help them establish

businesses.

• The state may consider conducting dedicated annual events for provision of seed funding to early stage startups. The state could consider other models for seed funding such as subsidising interest payments on loans obtained from commercial banks.

5. SEED FUNDING SUPPORTSeed funding can be in the form of a direct grant, subsidised loan, product development and marketing financial assistance, monthly sustenance allowance or even equity seed funding. With seed funding, the evaluation is based on the states’ endeavor to help a business grow and generate its own capital by establishing a guideline document. The states need to ensure that startups scale with the right velocity in order to achieve leading positions, through state investment and startup’s entrepreneurial knowledge.


6. VENTURE FUNDING SUPPORTVenture capital funding support is provided to the startups from state supported funds. The states are evaluated based on the establishment of the Fund of Funds (FoF) with approved operating guidelines and signing a memorandum of understanding (MoU) with the fund manager along with a concrete budget allocation. Venture funding provides strong growth potential to startups wherein the fund is used for the all-round development of startups and to levitate the startup ecosystem of the states.

Venture funding is a crucial element required for growth of early stage startups and the same needs to be developed in order to sustain the growth of the startup ecosystem of the state. The state encourages angel investor networks to forge strategic partnerships in the state.

KEY FACTS

WAY FORWARD


MEDIUM TERM ACTIVITIES (4-6 MONTHS)The activities suggested in this category are important and would take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. Activities suggested under this category are as follows:

Report Startups funded from Venture Funds• The state may consider submitting the list of startups with the amount of funding they have received and an undertaking by the

beneficiaries for receiving the venture fund.

• The state fund is recommended to focus on scalable, innovative business models, across sectors and backed by credible teams with characteristics like proven product or service offering, innovation, initial revenue growth etc.

• The state may maintain an online dashboard containing details of venture funds sponsored or supported by it.


7. AWARENESS AND OUTREACHIt is the endeavor of state governments to raise awareness about the Indian startup ecosystem and increase its outreach throughout the state. The states are evaluated based on awareness of startups created through workshops, national and international events including bootcamps and hackathons/ grand challenges. In order to promote startups, the state encourages participatory and inclusive processes for linking startups with angel investors and high net worth individuals. Maximum participation is encouraged for exchange of valuable knowledge amongst startups, and pitching sessions for angel investments with widespread propagation.

The state encourages participation of startups in national/international events through sponsorship. Adequate financial assistance is provided to the eligible startups for participating in reputed events and conferences. The startups interested in availing sponsorship are required to mail a formal request/proposal to [email protected] startup council evaluates the request and the decision of the startup Council is considered to be final and binding.The ‘Startup India Yatra’ has been conducted across various districts of the state. The winners are awarded with not only incubation offers but cash rewards to encourage participation and have maximum outreach. The state has also conducted multiple angel investment workshops to create awareness about the progressive startup ecosystem in the state.

KEY FACTS

ORGANIZING BOOTCAMPS

• As of September 2018, the ‘Startup India Yatra’ has been executed in nine states covering 99 districts. So far, 685 incubation offers, and cash prizes worth INR 42.6 lakh have been awarded to the winners of Yatra. Telangana has been the only state which offered incubation to all the 200+ finalists during their grand finale.

• The state had conducted two bootcamps where participants attended an ideation workshop and pitched their ideas.

WELL COVERED HACKATHON AND GRAND CHALLENGES

• The state has organised three hackathons. Hackathons conducted by the state identifies innovative technological solutions and supports entrepreneurs in building these solutions as viable products or service offerings.

• Over the period of consideration, there have been more than 975+ beneficiaries of this initiative.

MULTI- SECTORAL ANGEL INVESTMENT WORKSHOPS

• The state has conducted multiple angel investment workshops. The list of workshops conducted is as follows:

− RICH Cancer Challenge

− Investor Interaction

− UberExchange Angel Workshop

− Facebook Angel Workshop

− Lab32 – Incubation Programmes Angel Workshop

− Yes Fintech Accelerator Angel Workshop

− Investor Connect Angel Workshop

− VC Speaker Series

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NATIONAL OR INTERNATIONAL EVENTS

• The state encourages participation of startups in national/ international events through sponsorship and provides adequate financial assistance to eligible startups for participating in reputed national/international events and conferences.

• The state reimburses 30% of the actual costs including international travel, subject to a maximum incentive amount of INR 5 lakh per year.

Some of the events conducted by the state are:

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DLD TEL AVIV INNOVATION FESTIVAL

To encourage the top-notch technical talent and multi-national centers for industry leaders such as Amazon, Google, Yahoo, Facebook, EMC, Microsoft, GM, Amdocs, SAP, Applied Materials, Facebook, Orange, Cisco Israel etc. Tel Aviv is the best location to network with the entire hi-tech hub.

EMPRETEC

In this immersive session, 20+ women entrepreneurs received personal entrepreneurial capacity-building training and were equipped with thought frameworks to guide them in their businesses.

HEADSTART

Startup Saturday is a flagship initiative of Headstart and is into its 12th year now. It has been conducted across 20+ cities in India. It helps attendees understand the industry and hear from entrepreneurs who are working on field, solving real life problems and building sustainable businesses. In the past, startups like Ola Cabs, Mobikwik, Freecharge, have presented at Startup Saturday in their very early stages.

CLOSED NETWORK EVENT WITH BRITISH DEPUTY HIGH COMMISSION

WE-Hub in association with the British Deputy High Commission, Hyderabad hosted an event on the Telangana Entrepreneurial Ecosystem, and WE-Hub incubated start-ups showcased their startups and products during an engaging session.

INK TALKS

INK is a platform celebrating innovation and operating at the intersection of science, technology, community and culture. It works across communities, age groups and disciplines to create conversation and infuses an innovative mindset.

MAKER FAIRE

WE-Hub helped design the startup engagement with over five women-owned startups showcasing a unique startup interaction to connect with the world’s most innovative hubs.

IITH-ACTION FOR INDIA: WORKSHOP ON ‘INNOVATION, STARTUPS AND SOCIAL IMPACT’

With this initiative, IIT Hyderabad and AFI, intend to identify high-potential social enterprises and provide a supportive system to help them in their scaling journeys with an aim of uplifting effect on the lives of people at the bottom of the pyramid.

BIO ASIA

Bio Asia 2019 was themed on Life Sciences 4.0 where global industry experts shared their thoughts on global trends and ramifications for all industry stakeholders. The conference was to ‘DISRUPT THE DISRUPTION!’. This highlights the urgency to take appropriate action to move forward (creative thinking, redesigning business models, etc.)


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USIBC PITCH CONFERENCE

WE-Hub was a knowledge and implementation partner for the Women’s Pitch Competition, which was conducted to encourage women entrepreneurs in the Indian startup ecosystem.

WRI-STAMP CHALLENGE

Journee, a startup incubated at WE-Hub was one of the three winners of the Station Access and Mobility Programmes (STAMP) challenge. Journee’s platform aims to be a backbone to the transport agencies through smart ticketing, analysis of data, and smart commuting.

UNDP IDEATION WORKSHOP

The workshop brought together “non- traditional” partners. Apart from UNDP Officials, WE-Hub hosted representatives from Academic Institutions, Enterprise enablers, NGOs, Government Departments and International Bodies present in the state, to ideate and discuss well-rounded solutions. The purpose is to engage youth participation across India to develop implementable solutions that are themed around the outcomes of the ideation workshop.

WAY FORWARD


MEDIUM TERM ACTIVITIES (4 –6 MONTHS)The activities suggested in this category are important and would take relatively more time for implementation. Through dedicated efforts, results can be achieved within four to six months. Activities suggested under this category are:

Improvement in organisation of bootcamps • The state could organise more bootcamps in schools and colleges on regular intervals wherein industry experts may be invited from

the startup ecosystem to conduct the bootcamps and disseminate vitalities of startups.

• The state also needs to ensure that such events are backed by supporting documents specifying the date, event name, venue, startup participants and brief description of the event.

Improvement in organisation of angel investment workshops• The state is encouraged to conduct angel investment workshops or networking events for connecting startups with angel investors/

High Networth Individuals (HNIs)/ angel network. This could be backed by event reports and list of attendees.


Notes

CONTACT US

www.startupindia.gov.in

[email protected]

1800-115-565

telanganatelangana state innovation cell (tsic) () is the official website for all information...

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