Every innovator understands the inflection point: you are already past the seed stage, you are already getting money, however, scaling up does not seem like a possibility. It is a critical stage that is commonly referred to as the valley of death, and countless successful startups fail because they do not have financing.
The Government of Gujarat has introduced an immense initiative that is specifically meant to close this gap. The Pre-Series A Funding aspect under the larger Scheme of Assistance to Start Ups/ Innovation is a financial booster to startups that are poised to dive into the next level.
This detailed guide will take you through all the details you need to know, such as eligibility to application, to enable you receive this important assistance.
What is the Gujarat Pre-Series A Funding Scheme?
It is a blanket plan initiated through the Gujarat Industrial Policy and is operational between 7th August 2020 and 6 th August 2025. The essence of its mission is to drive economic growth through creation of employment, competition, as well as implementing next-generation solutions in the market place.
The Pre-Series A option is a mid-level financing, overseen by Gujarat Venture Finance Limited (GVFL) and targets startups that are past an idea stage and require a helping hand to gain a considerable market momentum. It is designed to suit the already seed-supported individuals who found themselves in the precarious post-commercialisation stage.
Key Benefits: Why Your Startup Should Apply
This scheme is more than just a cheque; it’s a strategic partnership for growth.
- Bridge the ‘Valley of Death’: It offers vital financial assistance when you are already operating commercially, but still not attractive to the bigger venture capital partners.
- Sector-Agnostic Support: Whether you’re in tech, engineering, agriculture, healthcare, or any other field, your innovative idea is welcome.
- Government-Backed Credibility: Being selected adds significant credibility to your venture, making it easier to attract future investors.
- Continuity of Support: It’s perfectly suited for startups that have already benefited from initial seed funding, including those under the Student Startup and Innovation Policy (SSIP).
Eligibility Checklist: Is Your Startup a Good Fit?
Before you begin your application, ensure you meet the following criteria:
Who Can Apply?
- Any individual or group with an innovative idea or concept.
- Your startup must be recommended by an approved Nodal Institution.
- Startups from any sector are encouraged to apply.
- Startups already receiving benefits under the Student Startup and Innovation Policy (SSIP) are also eligible.
Who is Not Eligible?
- Entities formed by splitting or restructuring an existing business. This scheme is for genuine, new startups.
- Startups that are already availing benefits under other startup schemes of the Government of Gujarat (with the exception of SSIP).
The Application Process: A Step-by-Step Walkthrough
The application is managed entirely online for your convenience. Here’s how to navigate the process:
Part 1: Portal Registration
- Visit the Portal: Go to the official Startup Gujarat online portal.
- Initiate Registration: Click on the ‘Register’ button, typically located at the top right corner of the homepage.
- Verify Your Email: Enter your email ID and click ‘Next’. Verify the details you’ve entered and click ‘Submit’ to complete your portal registration.
- Complete Your Profile: Once logged in, fill in all the required details in the Common Application Form and finalise your profile by clicking ‘Sign Up’.
Part 2: Scheme Application
- Log In: Return to the portal and click ‘Login’. Enter your registered email ID and password to access your dashboard.
- Access Your Dashboard: Inside your dashboard, ensure all your personal and startup details are complete and up-to-date.
- Apply Now: Locate and click the ‘Apply Now’ icon on your dashboard.
- Select and Apply: From the list of schemes, select “Scheme for Assistance for Start Ups/ Innovation” and carefully fill in all the required application details for the Pre-Series A funding component.
Documents You’ll Need to Prepare
Prepare the following documents in advance so that application process can be smooth:
- Proof of your startup’s registration (e.g., Startup India certificate).
- A formal recommendation letter from a recognised Nodal Institution.
- A comprehensive business proposal document detailing your innovative idea, market analysis, and growth plan.
- Financial documents, including projected revenue, burn rate, and specific funding requirements.
- A declaration stating you are not availing incentives under any other Gujarat government startup schemes (except SSIP).
- Any other documents as specified in the application.
Frequently Asked Questions (FAQs)
Q1: What is the main objective of this scheme?
The ultimate goal is to boost economic growth and employment through specific financial support through innovative startups in the difficult post-seed, pre-growth stage.
Q2: What exactly is ‘Pre-Series A Funding’?
Pre-Series A financing is a funding round that assists startups to fill the gap between seed funding and full Series A round. It helps businesses which have already entered the business world but require funds to establish a position and attain momentum.
Q3: Which startups are eligible for this funding?
Any business which has an innovative idea, which a Nodal Institution suggests and which has never been formed splitting an existing business is eligible. It is open to all sectors.
Q4: Can a startup receive benefits from multiple government schemes?
In this particular scheme, you are not allowed to get the benefits of other schemes under the Gujarat government startup schemes concurrently. The exception occurs only when it comes to the startups that also enjoy the Student Startup and Innovation Policy (SSIP).
Q5: What role do Nodal Institutions play?
Nodal Institutions are important gatekeepers. They evaluate the potential of your startup and the level of innovation and need to give a formal start-up when your application is being considered.
Q6: Who gives the final approval for the funding?
The ultimate authority is given by the State Level Empowered Committee (SLEC) after due diligence and examination of your application is carried out.
Contact Information
If you have further questions, don’t hesitate to reach out to the dedicated team:
Startup Gujarat Cell
Office of Industries Commissionerate
Block No: 1, 3rd Floor, Udhyog Bhavan,
Sector: 11, Gandhinagar – 382010
Gujarat, INDIA.
Phone: 079-23252588 / 1800-233-0616 (Toll-Free)
Email: icstup@gujarat.gov.in
Ready to power through your growth phase? Don’t let the ‘valley of death’ hold you back. Check your eligibility, prepare your documents, and take the first step towards securing the funding your startup deserves.