When is the right time to approach Innovative Division for Seed Capital Assistance?
We are generally given seed fund assistance to innovative ventures by way of soft loan or equity share capital at 90% of the project cost or Rs.25 lakhs whichever is lower. These companies have ranged from prototype to pre-launch to launch and even post revenue. We appreciate different businesses are at different stages when they learn about us. But from the point you have a prototype (pre-revenue) through to when you have early revenue, we are happy to learn more about what you do and consider you for investment.
Does Seed Funding only invest in certain areas/sectors?
We are sector agnostic in our approach and focus on backing world-class founders creating valuable, tech businesses for sufficiently large addressable markets. We want you to be solving big problems for big markets. We aren’t afraid to take risks so you shouldn’t be afraid to be ambitious and far reaching.
How much does KSIDC typically invest as Seed Fund assistance?
We will lead your first investment with a cheque of ₹2500 K as Soft Loan for a period of one year at the prevailing RBI bank rate as on the date of sanction of financial assistance. After one year, the Company shall either take necessary steps to convert the soft loan into Equity Capital or repay the soft loan with applicable interest.
Do you invest in companies outside of Kerala?
We believe global fast-growing companies can be born anywhere in the world. Whilst we tend to focus on Kerala Based founders, we are happy to consider founders from other geographies if we can both agree on how we can best deliver value and they can leverage our platform.
Will KSIDC agree to sign an NDA?
It is typical for investors to not sign NDAs. There are plenty of resources on the web on why this is the case. As we want to make sure we can expedite your fund raise from us, we don’t sign NDAs.
Does KSIDC insist on always taking board seats?
The best way for us to be able to help you is to have access to the same level of information and conversations as your other investors. In that spirit, we do not take board seats but generally like to take an Observer role. We expect to stay on as an Observer for the first six months after we invest, and are happy to discuss whether we can continue to add value thereafter.