The state government will support entrepreneurs with grants of INR 3 Lakh to help with product development and the training
Bihar’s industrial minister Syed Shahnawaz Hussain also launched the startup portal for new entrepreneurs who are looking to avail the benefits that the platform offers.
If a startup is able to attract angel investors, Hussain said that such startups will get two percent of the investment as a success cost from the state government.
To promote entrepreneurship to encourage entrepreneurship Bihar the state’s industrial minister Syed Shahnawaz Hussain has launched the Bihar Startup Policy on the 29th July.
As part of the Bihar Startup policy The state government provides an interest-free seed funding fund that is INR 10,010 Lakh to start-ups for the duration of 10 years. The state government will also provide INR 3 Lakh to help with product development and training if the startup is part of Accelerator programs.
Alongside in addition to the Bihar Startup Policy, Hussain has also launched a portal for startups to young entrepreneurs who are keen to benefit from the services provided by the platform.
If a startup is able to get angel investors, Hussain said that such startups will also receive 2percent of the total investment in the form of a success fee from the government of the state.
If the startup succeeds in securing money from angel investors, but is in need of additional funds and government support, they should seek assistance as there is the possibility of a matching loan, which is arranged under the Startup Fund Trust of Bihar’s Industries department. He said.
To further encourage women’s entrepreneurship in Bihar the Bihar government will also provide five percent allowance to women entrepreneurs compared to male counterparts. In addition to 5% women will receive an additional 5% of investment in every initiative run by the startup policy. This includes the grant in the amount of INR 10.5 Lakh seed fund and an investment amount that is INR 3.15 Lakh for product development if they take part in Accelerator programs.
In the same way similarly, scheduling caste (SC) and schedule tribe (ST) founders of startups will also be provided with additional 15% benefits in the startup policy, including an award that is INR 11.5 Lakh seed fund as well as an investment in the amount of INR 3.45 Lakh for participating in accelerator programs, according to the minister.
Additionally also, the Bihar government is expected to invite applications for startup seed funding starting in the coming month Sanjeev Kumar who is the chief of the Bihar’s Udyog Vibhag Department of Industry was informed.
The minister also mentioned that in order to encourage more startups to participate within Bihar’s economic system, Bihar’s administration of the state will offer workspaces for startups to work in. To take advantage of these facilities mentioned in Bihar Startup Policy Bihar Startup Policy, the minister has requested startups to sign up on the recently launched Startup Portal of Bihar.
In recent months, various states, including Madhya Pradesh, Arunachal Pradesh, Haryana as well as Delhi are announced state-specific startup policies that aim to improve the startups’ ecosystem.
In addition that, The Centre has also provided incentives to companies operating in India by launching a variety of initiatives like Startup India Seed Fund, Startup India Initiative and Startup Leadership Program among others.
As of now, the nation’s unicorn club has the work of 105 companies across diverse industries, and the most recent inclusion of 5ire, a layer-1 network of blockchains. 5ire earned the unicorn title after it raised $100 million with post-money values in the range of $1.5 Bn.