A Complete Guide On Tamil Nadu Startup Seed Fund

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Capital flow is an essential part of every business to grow. In the case of an early-stage startup, easy access to funds is much more critical for an entrepreneur than the established one. 

Such early-stage startup funds are called seed funds. Most often, startups fail to make a minimum viable product (MVP) due to a lack of seed funds; in that case, it is unlikely that those startups will ever access angel investment or venture capital to grow further.

So, considering the drive towards innovation and entrepreneurship of the young minds of the Tamil Nadu state, the Tamil Nadu state government has set up Tamil Nadu Startup Seed Grant Fund, popularly known as TANSEED.

It was set up under StartupTN, an agency of the Government of Tamil Nadu. It aims to nurture a benevolent entrepreneurial ecosystem in the State.
So, the government has recently announced the launch of the 4th edition of TANSEED 4.0. To enable the aspiring entrepreneurs of Tamil Nadu to look for ways to raise seed funds.

In this article, we will learn the complete details about TANSEED 4.0, eligibility criteria, benefits of TANSEED, things covered under the TANSEED grant, and help you with your application process.

NOTE:
If interested, make sure you apply online for TANSEED 4.0 before August 21, 2022.

What Is the Tamil Nadu Startup Seed Grant Fund?

The Tamil Nadu Startup Seed Fund (TANSEED) is a state-run program that offers financial support to Tamil Nadu-based startups. Since its launch, the TANSEED program has provided funding to several startups, helping them get their businesses off the ground.

The fund is open to all kinds of startups, whether in the early or late stages of development. And there's no stipulation on the sector or industry you're working in—so long as your startup is based in Tamil Nadu, you're eligible for funding.

In addition to the financial support, startups that receive funding from TANSEED also benefit from access to several resources and services, including mentorship and networking opportunities.

To date, three successful TANSEED editions have taken place in the state. Currently, you can apply for funding in the fourth edition of Tamil Nadu Seed Fund, i.e., TANSEED 4.0

What is TANSEED 4.0?

TANSEED 4.0 is the latest version of the successful Tamil Nadu Startup Seed Fund, and it's excellent news for entrepreneurs in the state. If you're a Tamil Nadu startup founder, this guide is for you to understand the TANSEED 4.0 registration procedure.

TANSEED 4.0 provides Rs.10 lakhs as a seed fund grant to all the eligible startups in the early stages. 

If you are an entrepreneur in Tamil Nadu looking for ways to access seed funds for your business venture, Tamil Nadu Startup and Innovation Mission (TANSIM) invites entrepreneurs to register for TANSEED 4.0.

If your application is found eligible, you will receive the grand seed fund of Rs.10 lakhs as financial support. 
The eligible startups are shortlisted based on rigorous evaluation procedure as prescribed in the MSME(A) G.O.(Ms) No.49 guidelines.

Evaluation Procedure For Applying Startups:

Once all the application for TANSEED 4.0 is received, top startups are shortlisted by the panel.

Each shortlisted startup goes through boot camps, training, and mock pitching sessions.
Once it's done, you need to present your final pitch to a jury constituted by the government. If you are among the finalists, you will be eligible for the TANSEED 4.0 grant seed fund of Rs.10 lakhs. 

The Tamil Nadu government is on a mission to provide financial assistance to 100 startups under TANSEED 4.0. 

TANSEED Expert Committee Members:

1.    Mission Director of TANSIM
2.    Domain Experts
3.    Fudning Experts (VC partners, Angel Investors)
4.    Nominee from Finance Department
5.    Incubator Head
6.    Successful Entrepreneur(s)

Who Is Eligible for TANSEED 4.0?

If you're a startup based in Tamil Nadu and wondering whether you're eligible for TANSEED 4.0.

TANSEED 4.0 is open to all startups in the Tamil Nadu state. You can be just starting, or you've been in business for a few years; you are still eligible to apply for TANSEED funding.

If you're unsure how to register your business, here are the essential eligibility criteria you must check before applying.

Evaluation Procedure For Applying Startups:

Once all the application for TANSEED 4.0 is received, top startups are shortlisted by the panel.

Each shortlisted startup goes through boot camps, training, and mock pitching sessions.
Once it's done, you need to present your final pitch to a jury constituted by the government. If you are among the finalists, you will be eligible for the TANSEED 4.0 grant seed fund of Rs.10 lakhs. 

The Tamil Nadu government is on a mission to provide financial assistance to 100 startups under TANSEED 4.0. 

TANSEED Expert Committee Members:

1.    Mission Director of TANSIM
2.    Domain Experts
3.    Fudning Experts (VC partners, Angel Investors)
4.    Nominee from Finance Department
5.    Incubator Head
6.    Successful Entrepreneur(s)

Who Is Eligible for TANSEED 4.0?

If you're a startup based in Tamil Nadu and wondering whether you're eligible for TANSEED 4.0.

TANSEED 4.0 is open to all startups in the Tamil Nadu state. You can be just starting, or you've been in business for a few years; you are still eligible to apply for TANSEED funding.

If you're unsure how to register your business, here are the essential eligibility criteria you must check before applying.

ELIGIBILITY CRITERIA:

1.    Startup should be registered with TANSIM and the Startup India program (DPIIT). 
2.    Startup should have its headquarters located in Tamil Nadu or be willing to relocate the registered office to Tamil Nadu. 
3.    Startup should be registered with the Ministry of Corporate Affairs as one of the following business structures:
●    Private Limited Company (As per Companies Act of 2013)
●    Limited Liability Partnership (Under Limited Liability Partnership Act 2008).
●    Partnership firm (under Partnership Act 1932)
4.    As per the IT returns of the company, the average profit for three years should be less than Rs.5 lakh. The profit can be less than that if it's a newly registered entity
5.    Applying startup should have a high potential of employment generation, social impact, or wealth creation and should be working towards innovation, development and improvement of products or processes. 
6.    The startup should not be formed by splitting up the existing or restructured business. It should neither be a subsidiary, joint venture, nor associated with another company. 
7.    The startup should not have any dues to be paid to any of the government agencies or clear all the current dues. 
8.    Any government agency in India should not have blacklisted the applicant startup. 
9.    A startup should not be a subsidiary arm of an MNC or another foreign company registered in India. The applicant startup should be an Indian Startup.
10.  If you are an Overseas Indian Citizen (OIC), a Person of Indian Origin, you are eligible to be an applicant under this scheme. Your shareholding in the startup should be at least 51% of the total valuation. 
11. Startup applicants should not be service businesses working in trade and commerce. 
12.The TANSEED fund will be provided for developing the prototype or a product that is market-ready / of small-level pilot production only and shall not be for regular research, which any University or College can foster.
13.StartupTN reserves all rights in adding additional conditions / modifying existing conditions on a case-to-case basis.

Areas covered under the Grant: 

The Startups would be supported primarily on the following: 
●    To develop a prototype or working model to demonstrate the proposed technology solution and also cover the cost of equipment rental. 
●    Hiring technical mentors to aid and assist in prototype creation. 
●    Manpower for product development. (Not more than 30% of Grant) 
●    Test Marketing Testing, certification, and trials. 
●    Any other expenses deemed fit by the TANSEED Expert Committee.

TANSEED 4.0: Application Procedure

So you want to apply for TANSEED 4.0? Here is the step-by-step procedure:
The registration for TANSEED 4.0 can be completed in four parts.

Step 1: 
Visit the TANSEED 4.0 link

Step 2: Details of Startup (Part -1)

Enter all the information about the company, such as, 

1.    Name of Organisation (MCA registered business name)
2.    Type of Entity (choose the business structure) - To avail of the TANSEED fund, you must register either as a Private Limited Company, a Limited Liability Partnership, or a registered Partnership firm.
3.    Date of business incorporation
4.    Business Incorporation Number: CIN/Registration Certificate Number
5.    Sector of business operation
6.    Business website URL
7.    Regitration Address of the Organisation
8.    Information about whether your Startup is currently in incubation or already incubated at any startup incubation centre
9.    DPIIT registration number if you have already registered with Startup India.
10.  StartupTN Registration Number (If you don't have a StartupTN Registration Number, you may get it via registering at www.startuptn.in the portal.)

Step 3: Fill in all the Founder's Details (Part -2)

1.    Founder's Name
2.    Role of the founder in Startup
3.    Brief background and experience of the founder
4.    Email ID
5.    Phone Number
6.    LinkedIn Profiel Link
7.    Does your Startup have a Woman Co-Founder/CXO?* 
8.    What's your current team size?
9.    Team Member details

Step 4: Core Business Details about the Startup (Part -3)

1.    How long have you been working on your Startup?
2.    Provide a short description or elevator pitch of your Startup.
3.    Describe the problem you are solving
4.    What is unique about your solution?
5.    In what way are you impacting society, and how will you measure it? 
6.    Please provide the value proposition for your product/service based on the customer segment.
7.    Competitors, and what is your competitive advantage?
8.    What is the market size of the opportunity
9.    Briefly explain your revenue model.
10.  Revenue of last Financial Year
11.  Total Revenue of the previous 3 Financial Years for the Startup
12.  Average Net Profit of Last Three Financial Year (as per ITR Filled)
13.  The initial investment put into your project
14.  Technologies Used
15.  Details about Patents
16.  The investment you are looking for in the next 12 months and how the fund will be used
17.  Key milestones your company has already achieved so far
18.  Any grant support under any Central or State government scheme.
19.  Total funds raised so far
20.  Details about previous TANSEED applications and the progress made since then.

Step 5: Pitch Deck & Self Declaration (Part -4)

1.   Upload the pitch deck
2.   Link to Video presentation
3.   Accept Terms & conditions and submit it

Once your application is processed, you'll be invited to an interview with the TANSEED team. This is the final step in the application process, and the committee will assess your business plan and your team's ability to execute it.

Conclusion
You have read about the Tamil Nadu Startup Seed Grant Fund, or TANSEED 4.0, and how it can help you finance your startup dreams. You have also learned about the different ways you can register for the program.
Now it's time to take the next step. Go online and submit your application! The sooner you apply, the sooner you can begin receiving funding for your startup. So what are you waiting for? 
Last date for registration: 22nd July 2022 to 21st August 2022.
 

 


Author : Dharani

Date     : 05-Aug-2022


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