A major hurdle faced by most of the entrepreneurs is lack of access to funding. This session will focus on how to get access to quality funding and funding avenues available to agri-startups. It will discuss the modalities involved in obtaining funding assistance, more specifically, on understanding what a potential investor looks for in an agribusiness venture.

1. FUNDING OPPORTNITIES FOR STARTUPS
AND TECHNOLOGY COMMERCIALISATION
TECHNOLOGY DEVELOPMENT BOARD
(DEPARTMENT OF SCIENCE & TECHNOLOGY)
GOVT. OF INDIA
VISHWAKARMA BHAWAN
New Delhi – 110016
Dr. P S RAJU
Website :
www.tdb.gov.in
www.tdbindia.org

2. MINISTRY OF SCIENCE AND TECHNOLOGY
Government of India
Shri Vilasrao Deshmukh Shri Ashwani Kumar
Hon'ble Minister for Ministry of Hon'ble Minister of State for Ministry of
Science & Technology, Science & Technology,
Ministry of Earth Sciences and Ministry of Earth Sciences, Ministry of
Ministry of Parliamentary Affairs Planning & Ministry of Parliamentary
Affairs
Department of Department of
Science Scientific & Industrial Department of
& Technology Research Biotechnology
(Dr. S K Brahamchari , Secretary ) (Dr. M.K.Bhan Secretary)
Dr. T. Ramasami,
Secretary) Labs CSIR CEL, NRDC R&D Labs
TDB & NSTEDB
TIFAC
Shri H.K. Mittal
Secretary

3. TECHNOLOGY DEVELOPMENT BOARD
 A statutory body under Department of
Science & Technology, Govt. of India,
established on 1st September 1996 by
the Parliament under TDB Act 1995.
 A unique financial institution which
deals with Financing of Technology
Projects.

4. CHALLENGES IN COMMERCIALIZATION OF
INNOVATIVE TECHNOLOGIES
• Development & commercialization needs to be
done concurrently
• High Risk
• Difficult to appraise the viability
• Difficult to get finance from FIs/ Banks
• Commercialization is relatively costly

5. Challenges in Commercialization
 Long gestation periods; Cut-throat competition,
Commercialization is relatively costly and difficult
Complex Regulatory procedures
 Development & commercialization needs to be done
concurrently
 Difficult to get finance from conventional Financial
institutions/Banks
 High Risk
 Knowledge and R&D Intensive
 Difficult to appraise the viability

6. TDB Mandate
 Technology Financing
i) Accelerating the Development and
Commercialization of Indigenous Technology.
ii) Adapting Imported Technology for Wider Domestic
Application
 Joint Financing with Venture Capital
 Seed Support System for Start-up
 Collaboration with International Technology
Oriented Organization.

7. Source of Funds
 The R&D Cess that is being collected by the
Government of India from the import of
technologies has been put into a fund called
the Technology Development and Application
Fund(TDAF).
 It was managed by IDBI till 1996.
 TDB , since 1996, manages this fund.
 TDB got Rs. 500 crore from R&D Cess.

8. Accessing the Fund
 Loan*- 50% of cost of project
 Equity- 25% of cost of project
 Grant- Only in limited cases with
national priority
* The current rate of interest applicable is 5%
per annum (simple interest). In addition a
royalty is also charged on the products
developed under TDB project.
The repayment is due after completion of the
project and after one year moratorium.

9. Who can be funded
Commercial enterprises ;Start-up companies (excluding
sole entrepreneur/ sole proprietorship concerns).
Source of technology
National Laboratories
In-house R&D unit of a company recognized by DSIR
Individuals holding IPR
Adaptation of imported technology to wider domestic
applications
For Agriculture & Food Processing, IT and Designing & developing
Special Engineering Machinery (above condition relaxed).

10. Support is not available for
Refinancing
Basic Research
Establishment of new R&D centres
Mere creation of technical infrastructure
 Travel, Conferences, Workshops etc. unless
they form part of project approved by TDB
 Writing of books, reports unless they are
essential component of Board approved project
 More than 2 projects at a time to an industrial
concern
 An industrial concern that is sick

11. Life Cycle of an application for funding
 Submission of proposal
 Internal screening
 Evaluation of project
 Signing of loan agreement
 Project monitoring
 Completion of project
 Repayment of TDB loan

12. Flow Chart of Activities
Submission of proposal
Not recommended
Internal Screening
Rejection of
by DST experts(ISC)
proposal
Recommended
Evaluation By eminent
External experts
& site visit(PEC) Not recommended
Recommended
Not recommended
Examination by
sub-committee of
Board
Rejection of
Clearance by Chairperson
TDB Not recommended proposal
Recommended
Clearance by Board
Not recommended
Recommended
Signing Loan Agreement
(Release of 1st installment)
Contd. On next page

13. Flow Chart of Activities
Contd. from previous page
Signing Loan Agreement
(Release of 1st installment)
Project Monitoring
for release of subsequent
installments(PMC)
Project Completion /
Commercial launch
Repayment of loan

14. Partnership with TDB
 Health & Medical
 Road Transport
 Air Transport
 Engineering
 Chemicals
 Energy and Waste Utilization
 Information & Communication
Technologies
 Agriculture

15. TDB FUNDED ENTERPRISES
 Biocon Limited  Samtel Colour Ltd.  Vimta Labs Ltd.
 Shantha Biotechnics  Selco International  Bharat Biotech
Ltd.
 Bharat Biotech  Biovet Pvt. Ltd.
 Eicher Motors Ltd.
 Ranbaxy Limited  Sequent Scientific
 Reva Electric Car
 AV Alloys Limited  Realtime Systems
Co. Ltd
 Picopeta Simputers  indswift Ltd. .
 Radiant Cables
 Ravindranath GE Pvt. Ltd.  Tata Motors Ltd.
Medical (P) Ltd.
 Microtrol Ltd.  CSIR
 Legend Tech Pvt
 OmniActive Health
Ltd
Technologies (P) Ltd.

16. Joint Financing with Venture Capital
TDB has participated in venture capital investments with:
S.No. Fund Fund Size TDB’s contribution
(in Cr) (in Cr)
1. UTI-ITVUS (2000-01) 103.00 25.00
2. APIDC-VCL (Biotech Fund (Co- 100.00 30.00
Investment ) (2004-05)
3. UTI-AIF (2004-05) 300.00 75.00
4. Ventureast TeNet Fund II 60.00 15.00
(2006-07)
5. GVFL (2007-08) 250.00 15.00
6. RVCF (2008-09) 100.00 15.00
Total 683.00 175.00
TOTAL:- Rs.175.00 crores

17. Break-up of TDB Investments
The following table indicates the modes of financial assistance
provided by TDB till 31st March 2010
Instruments Sanctioned Disbursement
by TDB by TDB
Loans 750.30 646.67
Equity 25.71 24.36
Grant 101.01 85.66
Venture Funds 175.00 133.76
Total 1052.02 890.45

18. State-wise presence of TDB Investment
Andhra Pradesh 31%
Karnataka 18%
Maharashtra 13%
Tamil Nadu 7%
Madhya Pradesh 7%
Delhi 6%
West Bengal 5%
Other states <1%
TDB has its presence in 16 states

19. Industry-Academia-Institute Partnerships with TDB
National Labs
19% (21.3%)
Indl. R&D
units 50% Overseas
(49.2%) 4% (5.2%)
Tech. Provd.
TDB Funding
Individuals
14% (10.5%)
Govt. Dept.
7% (10%)
Acad.
Institutions 6%
(3.8%)
Technology providers: 218; Funds committed by TDB:Rs. 996.21crores

20. Pro-Active Roles
It encourages industries and R&D institutions for
product innovation or improvisation of socially
relevant and profitable technologies that suit the
Indian market; technology to be goal-oriented,
socially relevant and profitable.
It identifies the areas that requires strategic
interventions.
The Board encourages new ideas from small
enterprises even at the risk of failures.

21. Seed Support System for Start-up
 TDB initiated the Seed Support System for Start-
up in Incubators (STEP/ TBI) administered by
DST in 2005-06 to provide early stage financial
assistance to the young entrepreneur in bringing
out innovative technology venture ideas to fruition
 The Scheme provides Rs. 100 lakhs (0.2million US
Dollar) grant to the Incubator (STEP/ TBI)
recognized by DST over a period of three years.

22. Objectives of Scheme
The objective of the Seed Support Scheme
(SSS) is to equip the incubators (STEP/TBI’s)
with the early stage financial assistance to be
provided to deserving ideas / technologies.
This would enable the innovative ideas/
technologies to graduate to a level where they
can then be fit for seeking normal lending
through TDB/FI’s route in their way to the
successful commercialization process.
This assistance is positioned to act as a
bridge between development and
commercialization of the technologies.

23. Seed Capital Scheme
• TDB provides grants of
Rs 1 crore to TBI /
STEP managers.
• Grant to be used as
Seed Capital (Loan
and / or Equity)
• Beneficiaries: in house
Tech start up
companies.
• Transparent
Framework
• Flexibilities of Terms

24. Seed Capital Scheme
Policy
 Maximum grant by TDB : Rs one crore to the
Corpus.
 TBIs/ STEPs must have
 for in-house tech start ups,
 physical infra and common facilities for
them,
 Access to knowledge, mentoring,
 Access to Tech services,
 Manpower / expertise to manage,
Fifth Round Call to TBI / STEP managers : Last date July 31, 2011 more…… www.tdb.gov.in

25. Seed Capital Scheme
Policy
 Minm: Rs 1 lakh, Maxm Rs 25 lakhs,
 Assistance as seed capital and not as Term /
WC financing.
 Project Management Committee as the top
Policy and approval body,
 No Lien Project Bank Account.
 Proper legal structure.
Fifth Round Call to TBI / STEP managers : Last date July 31, 2011 more…… www.tdb.gov.in

26. Features of the Scheme
This is meant for early stage funding for
indigenous ideas and technologies requiring up-
scaling and related work.
This will also be open for the tenants of other
Incubators (STEP / TBI)
This is considered as a means of sowing the
seeds of ideas and converting young potential
entrepreneurs as future clients of TDB and not
as a means of assured financial return.

27. Broad Areas To Be Covered
The start-up would be supported primarily on
 Product Development
 Testing and trials
 Test Marketing
 Mentoring
 Professional consultancy (to attract Professors of
institutions to work with small firms)
 Any other area as deemed necessary and
recommended by the selection committee of
STEP/TBI’s.

28. Seed Support for Start-ups in Incubators
TDB has provided financial assistance of Rs. 5.00 crore ( 1 million US
Dollar) to five STEPs / TBIs in first and second round during 2005-06 &
2007-08.
 JSSATE – STEP, Noida
 VIT- TBI, Vellore
 CIIE – IIM, Ahmedabad
 TREC-STEP, Tiruchirappalli
 SINE – IIT, Bombay
 PSG- STEP, Coimbatore
 SJCE- STEP, Mysore
 TBI- KEC, Perundurai, Erode
 SIDBI Innovation and Incubation Centre, IIT Kanpur
 ICRISAT, Pantancheru, Hyderabad
 Support is given over a period of three years .

29. Collaboration with International
Technology Oriented Organizations
TDB has signed MOU with the following organizations to
promote, assist and fund the development of joint technology
corporation/ transfer projects and for supporting SME
growth via technology transfer, industrial research,
technology development & innovation for the purpose of
generating economic benefits .
 MOU with Agence Nationale De Valorisation de la
Recherché (ANVAR), France.
 Centre for the Development of Industrial Technology
(CDTI), Spain.
 Commonwealth Business Council (CBC), U.K.

30. ACHIEVEMENTS OF TDB
 15 years of rich experience in funding commercialization of
new technologies and handholding with enterprises.
 So far, TDB has signed 270 agreements with total outlay of
Rs. 3500 crore and TDB assistance of over Rs. 100 crore.
 Projects are spread over 16 states and almost in all the
industry segments.
 TDB has emerged as a major promoter of first generation
technopreneurs.
 First Generation Technopreneurs need more managerial
support and handholding.

31. National Awards
Every year 11th May is celebrated as ‘National
Technology Day' in India to forge powerful
partnerships of industry with the national
laboratories and to create knowledge networks with
academic institutions to promote research and
development and to gain entry into global markets.

32. National Award to a SSI unit for
successful technology
The Technology Development Board also
provides a cash award of Rs. 2.00 lakh to be
given to a Small Scale Industry (SSI) that has
successfully commercialized a product based
on indigenous technology.

33. THANKS

34. Life Cycle of an application for funding
 Submission of proposal
 Internal screening
 Evaluation of project
 Signing of loan agreement
 Project monitoring
 Completion of project
 Repayment of TDB loan

35. Flow Chart of Activities
Submission of proposal
Not recommended
Internal Screening
Rejection of
by DST experts(ISC)
proposal
Recommended
Evaluation By eminent
External experts
Not recommended
& site visit(PEC)
Recommended
Examination by Not recommended
sub-committee of Board
Rejection of
Clearance by Chairperson Not recommended proposal
TDB
Recommended
Clearance by Board
Not recommended
Recommended
Signing Loan Agreement
(Release of 1st installment)
Contd. On next page

36. Flow Chart of Activities
Contd. from previous page
Signing Loan Agreement
(Release of 1st installment)
Project Monitoring
for release of subsequent
installments(PMC)
Project Completion /
Commercial launch
Repayment of loan