I’m working on launching a travel-related app with a small team. We wanted to apply for the startup India seed fund scheme but wanted to understand the process from people who have been through it. We have a prototype that is close to launch and can really use funding for marketing as it is a B2C business and initial cost of customer acquisition can be high.
Any advice on how to choose incubators?
Are there any terms to be aware of or reasons to not apply to startup India scheme?
Company was incorporated in parents names as we quit our jobs only recently. Would that be a problem?
For those who have taken the funding, how much do incubators dictate the spend of money and how much time goes into both application and regular updates? Is it worth it?
@rushu There are very few incubators, if at all, that make sense, unless you are a first time entrepreneur and you have no connects at all in the industry to learn faster.
Most incubators in India are good for
- Seats
- Washroom
- AC
- Water cooler
- Cloud credits
Rest is upto you to figure out.
Yes 3 is a problem, and a very big one.
Good incubators will not dictate your funding or what to do once you get the money.
@dietcake I’m specifically looking for some funding for marketing. Yes, first time entrepreneur and I do know few people in the industry but raising funding from VCs requires good product metrics and I was wondering if the 20 lakhs from startup seed fund would help me with marketing and reaching those initial numbers to go to VCs
Just like college incubators of top colleges are best , try to find your niche incubator
2.There are no terms of you're applying first time. Go for nidhiprayas and then incubator fund. Incubators can be different.
No. Just make sure you're a legal part of it you can change the ownership later.
No one dictates the use of money but you cannot use it for paying loans , getting salary and travel. One week is more than enough for applications and they require monthly updates.
@rushu As part of startup funding there is a strict due deligence process that happens. Company being under parents name can be challenging. Have you tried pitching in the VC ecosystem or have had any contact with any one in the ecosystem on a personal level? They might be your best bet right now.
@ribs26 Thanks for the suggestion. For VCs, I was told that some initial traction would be more convincing (initial feedback from one VC also indicated that they need more validation of idea and go to market strategy). Startup seed fund explicitly says for prototype and initial marketing. So I thought that if we have a good team and idea, we might be able to raise some funds.
