Money or financial resource is the life-blood of any business organization. Early stage entrepreneurs often find it difficult to acquire fund to start their business ventures. This is where BIC Startups comes into the picture. The startup teams who have a promising plan will get seed fund from the incubation center.
What is a Seed Money?
As its name suggests, seed money is the very initial stage fund that is provided to entrepreneurs. The purpose of the seed money is to enable the entrepreneur to explore their business idea, develop a business plan, create the first prototype of their products and test it in the market. Depending upon the type of businesses, seed fund will help to finance initial activities of launching a business venture.
When does the startup become eligible for seed fund?
The startup becomes eligible to receive the seed fund after being chosen on the demo day. The lucky startups will receive up to two lakh rupees on installment basis based upon the set milestones. As the milestone is achieved, the startup will receive another installment to work on another milestone.
Seed Fund will not be sufficient to launch my Startup Venture. What shall I do?
We do understand that the seed fund will not be sufficient to launch full scale business of any sorts. This is very natural. In that case, BIC Startups will provide support to the ventures in acquiring bank loan as well as connect the ventures with investors who may be interested to invest in their businesses.
Do we have to refund seed-fund?
The purpose of the seed-fund is to support the entrepreneurs to get started. Therefore, once the business is launched the seed-money has to be refunded to the incubation center. The seed-money is also known as a revolving fund which means that it will be utilized to finance another round of the incubates and their ventures. However, you will only refund the principal amount. BIC Startups will not charge any interest on the seed money.