SINE support for BIRAC funded grantees

Level 1 – While applying for the grant

SINE will provide the grant applicant the Letter of Intent (LOI) on request, provided the applicant signs a
separate letter of undertaking stating that they will incubate at SINE after they have been approved the
grant.

(Please note any costs related to the incubation/institute support will have to be factored in the budget
while applying for the BIRAC support. This includes rent, lab access, consumables etc.)

Level 2 - After grant approval

Pre-incubation
1. The innovator will be pre-incubated at the Business Incubator (BI) for a maximum period of 18
months. The applicant will ensure to complete the said project related milestones as stipulated by
BIRAC. A copy of the project closure report as submitted to BIRAC will also have to be given to
SINE.

2. For the pre-incubation, the applicant/incubatee will submit the following documents to SINE:
• Copy of grant proposal (BIG/IIPME/SPARSH etc.) that was finally submitted and was
accepted
• Copies of the emails correspondence with BIRAC
• Copy of the approval/sanction letter for the said grant
• No Objection Certificate (NOC) letter from IRCC/institute for the use of Intellectual
Property(IP) (if applicable)
• Other supporting documents, such as, NOC from all the other partners, if any, previously
involved with the project, and/or are not presently involved, have to be taken. The NOC will
state that they have no objection in the present applicant and/or team working on the
project/idea and that they will not have any claim on the IP, both present and future.

3. The charges payable by grantee to the incubator during pre-incubation are:

• INR 20,000/- per month for the furnished office space, if provided (based on the availability
of space)
• INR 10,000/- per month in case the applicant-innovator/company has made own
arrangements for working on the project. A desk space as per availability at any of the BI
premises will be provided, if required.

Usage charges, if any, of Institute’s labs and any other facilities, as stipulated by the
institute/concerned department/centre of IIT Bombay and/or as per terms mutually agreed upon by the
concerned parties i.e the applicant and the institute entity. These will be payable directly to the
institute/concerned department/centre.

4. All the grantees have access to the shared facilities such as, meeting rooms, conference rooms, pantry,
etc., available at SINE.
5. The grantee may also avail of the intangible benefits like
- Introduction to SINE and IITB business network such as investors, mentors, industry
professionals.
 - Access to retainer/consultant services such as CA, legal experts, HR services as and when
made available to all incubatee companies.
- Participation in workshops, talks, seminars, events as co-ordinated or organised by SINE.

Regular Incubation
1. During or at the end of the pre-incubation/completion of project/when company gets incorporated as a
Private Limited Company (Pvt. Ltd.), whichever is earlier, SINE will review the progress on the
milestones before conversion to regular incubation. Post the completion of project, the maximum
duration for this process is 3 months beyond which the applicant may have to go through a separate
review process.

2. SINE facilitates the grantees having innovative technologies by admitting them in BI and providing
them with incubation, technical and networking supports & services under regular incubation. The
duration of the regular incubation is for maximum of 36 months post the pre-incubation term of the
project.

3. For the regular incubation, the incubatee will submit the following documents:

• Letter from IRCC/IITB for the commercial use of institute IP, if any
• Certificate of incorporation, Memorandum of Association and Articles of Association on
incorporation
• Founder’s agreement from the founding team.
• Any other document that may be required at that point of time

4. When the proposed company is taken under regular incubation, it will pay to BI the consideration as
detailed below:
• The company will pay the subsidized monthly rent prevailing at that time as applicable to the
physical space in the BI premises concerned.
• Equity holding and Revenue sharing in the Company will be 6% to be split into equity and
revenue share, as 5+1, 4+2 or 3+3, respectively, if company is physically incubated at SINE.
In case of virtually incubated companies the consideration is 3% to be split into equity and
revenue share, as 1.5+1.5 or 2+1, respectively.
• The above consideration models are applicable only if the conversion process happens before
six months beyond which, additional consideration of 1% will become applicable.
• SINE may stipulate additional consideration for any enhanced support that may be required in
case of any healthcare, life sciences or medical devices company.
• In the event institute IP is involved, the consideration terms will have to be negotiated with
IRCC/IITB, separately, by applicant/innovator/company.
• In the event the company gets acquired, the company promoter(s) will ensure continuity of
the payment against the revenue share, failing which the Company and promoter(s) will pay
to SINE/IITB a onetime lump-sum settlement to be decided mutually.
• In the event, the applicant/company chooses not to be incubated, 50% of the stipulated
consideration will have to be pledged in favour of the BI.

5. As long as the BIRAC grantee/ innovator/Company remain in the incubator, the stay will be subject
to SINE’s policy and procedures.

6. BIRAC grantee/ innovator/Company shall be liable to leave the BI, if it fails to comply with any of
the above terms.