The centre will get a grant-in-aid of 1.7 crore from Meity that will allow it to play the role of an angel investor for the technology startups. IIM-V will operate the centre as a Section 8 company with a mandate to nurture and support technology startup companies.
The five key thrust areas of the tech startups should be agriculture and water resources, health and nutrition, education and skill development, financial inclusion and smart cities and smart transportation.
TOI, IIM-V director Professor M Chandrasekhar said the grant of 1.7 crore can be invested in five technology startup companies. “Each company selected for incubation would get the financial support in the form of a soft loan for a maximum period of three years. The company will have to return at least half of the funds invested into the respective start-up at the end of three years. The remaining 50% funds can be converted into equity. The Section 8 company floated by the IIM-V to set up the centre has already got the approval of the IIM-V board,” said Prof Chandrasekhar.
Prof Chandrasekhar further added that the IIM-V incubating a particular start-up and having a representation on the company’s board will boost investor confidence. “IIM-V, being the host institute, will extend its full support to the start-ups at the centre, including mentoring, entrepreneurial training, providing market linkages, market research, expertise and facilities. It would help foster innovation at IIM-V, paving way for more indigenous products. The students of institutions will also get hands-on experience and can help the start-up in developing business models,” said Prof Chandrasekhar.
Prasad Dahapute, one of the IIM-V board members, will be the chairman of the Section 8 company, while the IIM-V director will be the chief executive officer. Chairman of entrepreneurship development cell and a faculty of the IIM-V, Mohammad Shameem Jawed will be the chief operational officer.
TIDE Centre at IIM-V
• It will be operated as a Section 8 (non-profit) Company
• Section 8 Company is established for promoting science, arts, education, research, etc.
• The TIDE Centre will receive Rs 1.7 crore grant
• The grant will be invested in five technology start-ups
• The start-ups should be working on agriculture and water resources, health and nutrition, education and skill development, financial inclusion and smart cities and smart transportation
• IIM-V will mentor and extend its expertise and market links to the start-ups
• Each selected start-up will get a soft loan for a maximum of three years
• The company will have to return at least 50% of the investment
• Rest of the 50% funds can be converted into equity to the TIDE Centre
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