- The state Government shall promote the startup culture using INFUSE model (INcubators – FUnd of Funds – Startup Entrepreneurs). The Financial support from the government shall be provided to Incubators, Startups & Venture Capitalist funding the startups
- The Government of Uttar Pradesh shall establish an initial Corpus (Seed fund) of INR 100 Crores in phases to promote Incubators and mobilize startups in the state of Uttar Pradesh. The additional funding by the Government shall be done based on the requirement & scalability as decided by the empowered committee.
- The fund shall be in the form of fund of funds. In this model, the fund shall not be invested directly into start-up companies, rather, it shall participate in SEBI-approved Venture Capital funds/ SEBI-approved Angel fund or angel fund listed with authorized institution of State or Central Govt.
- The state government shall match 25% of the money invested by the VC subject to the condition that the funding shall be done only to the startups based in Uttar Pradesh. The fund would be professionally managed like a PE/Venture fund with industry leaders in the committee along with support from private players and GoUP.
- At Idea/Prototype stage: Startups shall be provided sustenance allowance of INR 15,000 per month for a period of 1 year whose project is recommended by Nodal agency & approved by the committee.
- At Pilot stage: Upon securing of min funding of 25% from a known and registered angel/venture funds/ reputed incubators by startup, a marketing/ commercialization assistance of 25% of actual cost or INR 10 Lakhs whichever is lower, shall be provided to startups in 3 phases to launch its product /services in the market subject to the bi-annual review of the progress
- Financial assistance at Prototype & Pilot stage
- Marketing/ commercialization assistance of
25% of actual cost or INR 10 Lakhs