Incubation Centres

Submitted To: Prof Bhaskar Banerjee

Submitted By:Barkha Sirohi

Pranjali GaikwadRutuja Fuke

Definition• In the business world, an incubator is an enterprise that

is set up to provide • Office space• Equipment• Sometimes mentoring assistance and capital

to new businesses that are just getting started.

• Goals:• Economic development tool • Accelerate the growth and success of entrepreneurial

companies• Business support resources and services

Facilities and services• Incubator space: offices or workshops, sometimes labs,

available on a flexible, affordable + temporary basis

• Common services: secretarial support, telephone answering, common reception, mailing facilities, LAN and other office equipment, meeting rooms and cafeteria/canteen facilities

• Business counselling, namely ‘hands-on’ assistance with regard to business planning, training in management skills, access to accounting, legal-, marketing- + financial expertise, + ad hoc advice

• Access to finance + specialist advice: some operate own seed + venture capital funds; access to specialist advice provided if an incubator does not have the skills + know-how itself

Factors influencing the role of a business incubator

Local support Promoters

from different sources

Referring to local

strengths + weaknesses

Type of services already

available to businesses

locally

Type of R&D being

undertaken

What qualities should an aspiring incubate have?

After having established that your business idea is worth

investing time, money and expertise, members of the incubation

centre want you to ably demonstrate the following qualities:

A good team with balanced skills and strengths

Strong technical understanding about the product you are developing

Understanding of the market size your product or service can cater to.

Basic understanding of business and economy

Clear idea as to where your business stands on the SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis scale

Types of Incubators

Local Economic

Development

Incubators

Academic and

Scientific Incubators

Corporate Incubators

Private Investors’ Incubators

Goals Non-profit Non-profit For profit For profit

Main Activity

Generalists High-tech High-tech High-tech

Objectives • Job creation• Re-industrialisation• Economic development• Development of SMEs and clusters

• Development of entrepreneurial spirit• Civic responsibility• New sources of finance

• Monitoring - access to new technologies, business models, and new markets• Profits

• Profits by selling stock from a portfolio of companies allowing to risks to be spread

Target • Small commercial craft or service companies• In some cases, high-tech companies

• Projects internal to institution prior to company creation

• External projects

• Internal and external projects, generally related to the activity of the company

• Technological start-ups, generally ICT and/or biotechnology related

Local Economic

Development Incubators

Academic and

Scientific Incubators

Corporate Incubators

Private Investors’ Incubators

Offerings

• Hosting and shared services• Administrative assistance• Consulting

Eventually:• Coaching – training – networking• Access to financing

• Concept testing• Technical advice and supportIntellectual property advice• Seed capital• Basic management advice

Eventually:• Access to business angels, venture capitalists, and corporate investors, industrial networks• Strategic advice, Coaching, Hosting

• Financial resources•Prototype  & market testing• Access to commercial markets

Eventually:• Long-term strategic partnership• Access to multiple competencies

• Management and strategy advice• Supply of one or several types of financing and search of complementary financing• Personal networks

Eventually:• Hosting and administrative assistance• Legal services, public relations, recruiting, etc...

Local Economic

Development

Incubators

Academic and

Scientific Incubators

Corporate Incubators

Private Investors’ Incubators

Key Problems • Durability – lack of stability of resources

• Quality of services provided dependent manager

• Governance, risk of conflicts about the objectives, time spent in negotiating with different partners

• Legitimate inside the institution

• Legal status, governance, independence, and operational flexibility

• Income sources

• Management quality; lack of business coaching expertise

• Access to external resources and network

• Strategic position of the incubator for the corporate structure

• Management independence and ability to mobilize internal resources

• Durability of the mission of the incubator

• Conflicts about the objectives between the owners and the corporation

• Sourcing of quality projects

• Level and conditions of the incubator payment in comparison with provided services

• Valorisation of the incubator's participation at the entry and the liquidation

• Durability of the incubator

Local Economic

Development

Incubators

Academic and

Scientific Incubators

Corporate Incubators

Private Investors’ Incubators

Trends •Regular development

•Increasing territorial coverage

•Rapid development under the aegis of public programs

•Testing of the concept in numerous companies•Likely to develop

• High levels of consolidation and restructuring of the sector

• Still looking for a successful model

Stages and Sources of Funds• Seed Funding – Owner’s Capital

• Incubators – organizations speeding growth and success

• Angel Investors – high net worth individuals

• VC – less risks, more investments, support and partnership

• Bank/FIs - finance at growth stage

• PE – investors and funds for private companies

• Public Issue - for developed organizations

Process of Incubation

P• Proposal: To make proposal application

R• Review: By governing body, External body

I• Incubated: Company is incubated

G• Graduation: Co. graduated once they are able to raise

investment from angel investor/VC

Incubation Centres that we can access

Formula Group

Formula Incubation provides new start up companies and SMEs entering the Indian market a hassle-free experience by putting their businesses on the fast track

Cost benefit of Formula Group• A large, well-furnished reception area run by professional

staff • At no capital investment, you get a fully furnished and

equipped office tailor made to your needs• The Formula Café• Onsite IT support • Trained, professional housekeeping , office support  team,

Security team • Power costs, Water, Pest control Included in Package• Other management issues handled by Formula Group

Lunching Ventures in Gujrat• Fully-serviced offices on S.G. Highway• 23 office premises, more than 10,000 sq. ft. in office spaces• Big offices capable of seating 100 people at a time• Conference and training rooms• Office equipment and communication facilities like phones,

fax, photocopy and other services staffed by experienced personnel

• The best local experts and consultants in finance, taxation, logistics, legal and other matters

• Quick and easy access to industrial areas , clubs, entertainment areas and Golf course

• Project running to set up a Japanese Café within premises• Other offices in our chain in Delhi, Gurgaon, Chennai,

Bangalore, Pune, Mumbai, and Japan to support your business expansion plans

Virtual Office• Virtual offices for home-based businesses having remote

operations• A proper business presence with huge cost-savings • A prestigious business address sufficient to back your brand

your business and office stationery • A professional reception desk to answer phone calls made to

your business • Hold business meetings at Formula Incubation office 30 days

a year• Mail receiving, forwarding, and mail sending services to

establish your business is operating from the given location• Services of the Formula business support team for all needs

ranging from photocopying to getting a lawyer

Formula Corporate Services• RELOCATION SERVICES

• IMMIGRATION SERVICES

• CAR RENTAL SERVICES

• TRAVEL SERVICES

• RECRUITMENT SERVICES

• INTERPRETOR/ TRANSLATOR SERVICES

• CULTURE SERVICES

• Startup Oasis is a Jaipur based incubation centre that is developing an ecosystem in Rajasthan to inspire and support students, aspiring entrepreneurs and start-ups to solve persistent problems, develop breakthrough innovations and create world class enterprises

• RIICO and CIIE felt the need to tap into the pool of traditional Rajasthani entrepreneurship and use the joint expertise of RIICO and CIIE to channelize the entrepreneurial energies to foster creativity and innovations in order to solve some of the most obstinate problems of the state and the country

Startup Oasis - Facilities• Startup Oasis offers you several benefits• Top of the line office space with unlimited internet and other

ultra modern amenities• Get guidance from experienced mentors and technology

evangelists• Access to world class incubation support resources from CIIE

at IIM, Ahmedabad• Upcoming in-house cafeteria with 24 hours, unlimited tea and

coffee• Get the benefit of working with like-minded and creative

teams working in creative• Participate in various innovation and entrepreneurship

promotion events and programs being held at the facility and get exposed to the latest cutting edge ideas and thoughts.

• iCreate is a educational institute situated in Ahmedabad, Gujrat

• It provides a full time grooming program for people who want to start up there own business right after schooling

• Subsequent to the Grooming Program, in the next 6-8 weeks, aspirants are expected to pick an idea that has a strong value proposition around which a viable and defendable business can be built

• Then work out enough details to submit an incubation proposal along with a skeleton business plan. Such proposals are then evaluated by an independent panel for incubation at iCreate

• The incubation offering includes

Physical facilities

Funding up to Rs. 15 Lacs

Mentoring Networking

• The model is based on a debt - equity - revenue based commission structure. The model is built on solid proven experience of the founders and the initiative is backed by an exceptional Advisory Board drawn from across industry and academia from India and abroad

iCreate• The first batch had participants from India, US, UK, and

Singapore with experience of 2 to 20 years resulted in six incubation proposals of which four have been selected for incubation at iCreate

• Two incubated projects are existing companies (one scale-up) and the other two are start-ups

• The projects range from social entrepreneurship, ICT, medical devices, and gaming

• The second batch of grooming had participants from India and Finland with experience ranging between 2 to 6 years resulted in 7 incubation proposals of which five have been selected for incubation

• NirmaLabs is a high-tech incubator located at Nirma University campus in Ahmedabad, India

• A not-for-profit Section 25 company, NirmaLabs was set up by Nirma Education and Research Foundation (NERF).

• NirmaLabs is a brain child of Dr. Madhu Mehta (a father of telecom revolution in India)

• The Department of Science and Technology, Government of India, lists NirmaLabs as a Technology Business Incubator.

• At NirmaLabs, Ahmedabad

• Each incubated project gets seed funding up to Rs. 20 lakhs and each team member gets sustenance of Rs. 8000/- per month. 

Identify an idea,

understand hi-tech

markets and

emerging

technologies

gain insights of high-growth

businesses

form a team and

create a business

plan

develop value

proposition

during incubati

on

interact with

mentors and

venture capitalis

ts

Ideas and

Opportunities

Idea: White Board Wiper• A wiper for white boards can be made to wipe the

information written on it in one go by dragging the wiper horizontally through out the white board

• The wiper can be made such that it fits to existing white boards in colleges and schools (not a need, only to make life better/simple) and is also available with new ones

• Rejected: customer might not pay extra for wiper feature while buying a new white board as well as it depends on the interest of the someone else to attach it to already bought products. It also is not a need just a way to make life better

Opportunity: Electronic equipment rental shop/sell/movers packers

• Most of the times, furniture and electronic equipment like fridge and TV are available on rent but small electronics like iron, hot plate, electric cooking vessels, gas, etc are not available on rent for people who change cities for short term courses or trainings, etc. So this shop will serve the purpose. Also most of the time buying these items is of no use in future so people can rent them and return.

• Rejected: limited to areas where people come for some duration to study, training, etc. Also some competitors might get created

Idea: Only Delivery• Not all Restaurants deliver food beyond 2-3 kms. In places

like Gandhinagar, Dominos does not deliver food to NIFT and DAIICT which are major customers for it. So people have to visit the location to have the food

• Thus Only Delivery will deliver what ever dish ordered from a restaurant with some additional charges. Not just food but also groceries will be delivered from stores like Reliance fresh and D mart which are pretty far from the institutes and students need to spend time and money to get things from there Home Delivery of food and grocery around 5-7 kms of area with some additional charges

• Accepted: low start-up cost as well can be extended in future providing app to make orders

Idea: Web portal for NIFT• It gets difficult for the student to get connected to the

alumni and clear their doubts regarding the industry and their job opportunities. Also the alumni cannot reach students easily if there are any job offers or events that must be attended, etc

• Web portal will help students interact with their alumni easily and clear doubts or refer to discussion which must have happened for the similar doubts earlier. Also files can be shared by anyone on the portal

• Rejected: Depends on the interest of the institution also the institute needs to bear the cost of licence

Idea: Daily needs shop 24*7• A general cum convenience store that will be open 24 * .

Most of the stores in Gandhinagar close by 11pm and in case of an emergency no store is available.

• Rejected: few customers will drop in, in the extended open hours as there is no nightlife in Gandhinagar. Lights go off by 10:30-11pm

References• (n.d.). Retrieved August 8, 2015, from iCreate:

http://www.icreate.org.in/incubation

• (n.d.). Retrieved August 8, 2015, from Startup Oasis: http://www.startupoasis.in/people.php

• (n.d.). Retrieved August 8, 2015, from http://www.nirmauni.ac.in/ITNU/idea_Lab

• Gupta, K. L. (2015). Innovation & Entrepreneurship Development. New Delhi: MI-ETTIEE 2015.