A business incubator is a shared facility that seeks to offer its clients with the nurturing environment, value-adding intervention needed to develop and grow their business. Business incubators offer a comprehensive set of services and an appropriate environment to support entrepreneurial skills and to assist entrepreneurs in developing their ideas, skills, and knowledge. Business incubation is a dynamic process of business endeavor growth for the purpose of fostering young firms, new products, and technologies.
Business incubators play a vital role in reducing the risk and elevating the competence of entrepreneurs to nurture innovative and competitive enterprises. It supports the development of start-ups by providing them with advisory, administrative and other supportive services. Incubators may also help start-ups with their financing and funding needs by referring them to angel investors, venture capitalists, funding sources, and helping them to reach realistic goals.
Business incubators help deal with many of the challenges that entrepreneurs face in small business growth, including rising costs, unmanageable resources, shortage of capital sources and other startup concerns. Indian Startup has a clearly defined incubation process which helps entrepreneurs realize their goals. The goal of incubation is to make successful companies with the potential to create jobs, commercialize new technologies, and strengthen economies.
The Incubation of an idea at Indian Startup begins with entrepreneurs submitting their business plans for review here. The rest of the process, from submission to incubation at the Centre, is described below.
Once an idea is developed and has business potential, the entrepreneur is given an opportunity to present it to Indian Startup’s Screening Committee. After the screening process of the idea, the entrepreneur is informed of the next steps to be followed if it is selected for incubation. Intimation is sent with an outline of the documents that have to be submitted prior to the commencement of incubation.
The entrepreneur is expected to form a team and register as a legal business entity. The company has to submit its legal documents if any (eg. Articles and Memorandum of Association) before the necessary incubation agreements can be prepared.
Once the documents are received, they are reviewed and the required agreements (shareholders agreement and infrastructure licensing agreement) are arranged. In general, the entrepreneur is likely to enter incubation before the next Screening Committee meeting (that is, within one quarter); in special cases, some extension on this timeline can be provided.
Once the agreements are signed, the company is sent a letter allocating the incubation facility, necessary resources and indicating the start date of incubation. A lead advisor is assigned to help the entrepreneur in all the stages of Incubation process. More details about the facilities and resources can be obtained by sending an email to the Indian Startup team.
During the phase of incubation, there are a number of meetings with the Indian Startup team to evaluate the progress of the startup.
To ensure that they are given satisfactory exposure to the startup ecosystem, which includes potential customers and potential investors, these startups are encouraged to take part in major business showcase events that are conducted by prominent organizations including Indian Startup.
The final part of the incubation process is “graduation”. Graduation from Indian Startup, in this context, means that either the company has a good flow of paying customers or the following round of funding or financial support has taken place.