technology business incubator

TECHNOLOGY BUSINESS INCUBATOR

(TBI)ABRIDGED VERSION

Presented By: Rajni Ranjan

MISSION, OBJECTIVES AND BENEFITS

Increase the successful development of emerging businesses Contribute to the overall vitality, diversity, and growth of the communityProvide environments that will lead to job creation. Create wealth through multiplier effects and new tax generation


ROLE OF TBI

Clusters & Innovation

Parks

Corporates & Investors

Business Support

Organizations

Universities & Business Schools

Govt Organizations

Direct business development assistance

Professional network and relationship support

Educational programs

Facility-based services


GOVERNMENT AGENCIES – SUPPORTING TBI

• National Science and Technology Entrepreneurship Development Board (NSTEDB)

• Department of Science and Technology, Govt. of India

• The incubates can also avail the funding support from Business Incubation scheme supported by Ministry of MSME, Govt of India.


SERVICES• Links to strategic partners

• Access to angel investors or venture capital

• Comprehensive business training programs

• Advisory boards and mentors

• Management team identification

• Help with business etiquette

• Technology commercialization assistance

• Help with regulatory compliance

• Intellectual property management

• Help with business basics

• Networking activities

• Marketing assistance

• Infrastructure Support

• Help with accounting/financial management

• Access to bank loans, loan funds and guarantee programs

• Help with presentation skills

• Links to higher education resources


INDUSTRY SECTORS - SUPPORTED BY INCUBATION PROGRAMS

• Internet

• Advanced materials

• Retail

• Biosciences/life sciences

• Fashion

• Electronics/microelectronics

• Manufacturing

• Healthcare technology

• Technology

• Creative industries

• Construction

• Computer software

• eBusiness and eCommerce

• Wireless technology

• Aerospace

• Energy

• Wood/forestry

• Telecommunications

• Environment/clean technologies

• Computer hardware

• Media

• Medical devices

• Nanotechnology


KEY CONSIDERATIONS• Prepare and adopt a Business

Plan that addresses financials, ownership, governance, management, and operations.

• There must be a strong support network within the community including government, education, local business, and complementary service agencies.

• Business incubators are service programs, not buildings.

• There needs to be a focus on generating results as opposed to activity.

• Adequate financing must be in place to ensure the manager doesn‟t have to become a full time professional fundraiser.

• There must be a spirit of collaboration with complementary service agencies versus an attitude of protectionism and competition.


KEY CONSIDERATIONSManagement must be entrepreneurial in nature and committed to service.

Do not be overly restrictive regarding the targeted tenant mix. Cross pollination of ideas is good.

Keep tenant costs down. Focus on important things, not glitter.

Be realistic in what can be achieved.

• Graduation policies for technology oriented companies must reflect patience. It takes a minimum of 4 years from concept to commercialization.

• Ensure applicants fit into the incubator’s culture.

• It’s necessary to have a few “anchor” tenants to ensure a steady stream of revenue.

• Do not rely on private sector financial contribution as a regular on-going cost off-set.


TYPICAL SELECTION PROCESS

Application Incubation Recommendation Screening

Incubation OfferOn-boardingIncubation Execution

Incubatee Graduation

Post Graduation Engagement


PROCESS - SETTING UP A START-UP INCUBATOR.

TAKE-OFFDEVELOP

BUSINESS CASE

REVENUE

BECHMARK

BUSINESS NEED

OBJECTIVE


TYPICAL FUNDING SOURCE


STAGE OF DEVELOPMENTStage - I

• Focus on building a minimum viable product

• Achieve initial commercial traction,

Stage - II

• Reach certain level of maturity- limited company is incorporated

• Venture may choose to exit the incubator or remain

• Venture is full fledged business but continues to benefit from the support services provided by the incubator.

Stage - IV

• Venture will exit the incubator once an investment is made

• Or utilise incubator support services while working to become fully independent.


KEY POINTS FOR INCUBATOR SET-UPFeasibility study - will help determine whether the proposed project has a solid market, a sound financial base and strong community support – all critical factors in an incubator’s success.

Model - model business incubation programs commit to industry best practices such as structuring for financial sustainability, recruiting and appropriately compensating management with company-growing skills, building an effective board of directors, and placing the greatest emphasis on client assistance.


REVENUE SOURCE• Incubator Client Rent• Anchor tenant rents• Service fees• Grants • Donations• Donations in kind• Percentage on revenue from Incubates• Commercialization of technology• Technology Transfer


PERFORMANCE INDICATORS• Number of tenant clients

• Evaluation of services by incubator clients

• Growth in the number of applicants

• Number of companies that successfully graduate

• Percentage of incubator clients that successfully graduate as measured against the target established by the Board

• Number of jobs created on an annual basis within the incubator

• Percentage of incubator graduates that stay in the community

• Incremental tax revenues generated by technology incubator clients and graduates

• Level of community support for technology businesses

• Number of patents applied for and received by incubator clients

• Revenue of companies being served

• Capital raised by companies being served

• Grants received by companies being servedSource: Internet Data


CONTACTFor any Query contact –Rajni Ranjan

CEO – Teneo Global

Phone: +91-9818072971