The Bihar startup policy seed fund coworking space was introduced on July 29 by the state’s industry minister, Syed Shahnawaz Hussain, to promote entrepreneurship in the state. The state government of Bihar provides entrepreneurs with interest-free seed money of Rs 10 lakh for a term of 10 years as part of its startup policy. If a startup participates in an accelerator programme, it will additionally grant Rs 3 Lakh for product development and training.
In addition to the Bihar Startup Policy, Hussain also introduced a startup portal for young business owners who are interested in utilising the platform’s advantages. Hussain stated that businesses that are successful in attracting angel investment will also earn an additional 2 per cent of the total investment from the state government as a success fee.
Hussain stated, “There is a mechanism for a matching loan established up under the Business Fund Trust of Bihar’s industries department if a startup is successful in raising money from an angel investor but still needs more funding.”
In order to encourage women to start businesses in Bihar, the state government would provide them with an additional 5 per cent in benefits compared to their male counterparts. A grant of INR 10.5 Lakh seed money and an investment of Rs 3.15 Lakh for product development, if they enrol in an accelerator programme, are just two examples of the 5 per cent additional funding that women will receive under the startup policy.
Similar to this, the minister announced that startup founders from Schedule Caste (SC) and Schedule Tribe (ST) will be given an additional 15 per cent of provisions under the startup policy, including a grant of Rs 11.5 Lakh seed fund and an investment sum of Rs 3.45 Lakh for taking part in accelerator programmes.
Sanjeev Kumar, technical director of Bihar’s Udyog Vibhag Department of Industries, also announced that the state will start accepting applications for startup seed funding from the following month.