GUSEC Seed

Upto ₹50 Lakh in Seed Support for Startups

NIDHI SSS (Seed Support System) at GUSEC
Supported by NSTEDB, DST

Applications for GUSEC Seed are now closed.

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GUSEC Seed

The GUSEC Seed is a seed fund for startups at GUSEC, established through the Seed Support System (SSS) scheme of the National Initiative for Developing and Harnessing Innovations (NIDHI). NIDHI-SSS is a flagship seed funding scheme of the National Science and Technology Entrepreneurship Development Board (NSTEDB), an autonomous board of the Department of Science and Technology, Government of India. Through GUSEC Seed, startups incubated at GUSEC have an opportunity get seed funding support of up to ₹50,00,000 through an investment against equity, debt or a mix of both.

Eligibility

The startup should be a registered company (Private Limited or LLP) in India. Funding would be released to startups with a minimum of three months of incubation at GUSEC, however, non-incubated startups are welcome to apply. Application for GUSEC Seed will also be considered as an application to GUSEC Incubation.

The shareholding by Indian promoters in the incubatee start up should be at least 51%. Persons holding Overseas Citizens of India (OCI), Persons of Indian Origin (PIO) would be considered as Indian citizens for the purpose of this scheme.

Preference for seed support will be given to the following startups:

  • Technology-oriented startups
  • Early-stage startups with traction
  • Product Startups
  • Intellectual Property / knowledge-rich startups
  • Startups raising larger rounds, with GUSEC contributing a part of the requirement of the fundraising round

The startup has to be an Indian startup. This support is not meant for Indian Subsidiaries of MNCs/foreign companies. The startup should also fall under the definition of a startup as issued by DPIIT, Govt of India. Startups having a DPIIT-recognised startup certificate will be preferred.

No unutilized grant through GUSEC or any other incubator should be earmarked in the name of the startup at the time of release of funding under this Fund.

Exclusive incubation at GUSEC is mandatory for startups to avail support under GUSEC Seed. Non-incubated startups are welcome to apply to GUSEC Seed, however first tranche will be disbursed to startups after first 3 months of incubation at GUSEC. Application for GUSEC Seed will also be considered as an application to GUSEC Incubation.

Startups should also be fully compliant with all the various mandatory Incubation compliances at GUSEC, such as:

  • Complete compliance with the Startup Progress Review (SPR) calls
  • Renewal of Incubation (Form-D) requirements
  • Community Development Contribution (CDC) policy

Timeline

Application Window

January 16, 2021 to January 31, 2021

First-level Scrutiny

During the first week of February, 2021

Second-level Scrutiny

During mid-February, 2021

Selection and due diligence

By end of February, 2021

Soft Confirmation

March, 2021

Standing Funding Terms

The following are the standard and typical funding terms of the seed support under GUSEC Seed. Specific terms, such as equity, debt, and the financial instruments to be used, tenure of funding, the quantum of funding, etc. will vary from startup-to-startup.

  • Quantum: Startups would generally be able to leverage investments up to ₹50,00,000 under GUSEC Seed
  • Instrument: Funding would be made available against equity or debt, or a mix of both, to the startup
  • Progress Reporting: Half-yearly presentation on progress made to the SSMC for a minimum of 12 months after conclusion of utilisation of funds
  • Financial Reporting: 
    • Quarterly Financial Reporting, as required by GUSEC
    • Annual Financial Reporting, with Audit Reports, as required by GUSEC
    • Submission of Utilisation Certificate (UC) upon successful utilization of funds disbursed
  • MIS Reporting: Startups may also need to report via MIS / other online modes as required by GUSEC from time-to-time

Questions?

Please direct any questions you may have to our Seed team at the following coordinates:

Email: [email protected]

We typically respond to queries within 48 working hours. Our typical working hours for addressing general queries are from 11AM and 6PM, Mondays through Fridays.

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