SWEKEN IT HUB INCUBATION CENTER & ACCELARATOR FOR STARTUPS
Need of Start-up Hub at Vizag
As per the market research, current start-ups volume is increasing, almost 800+ start-ups looking for facilities, also government is well aware, that required infrastructure and support needed for start-ups. The increasing in demand of the start-ups is creating the need for incubation center. Currently as per the research done. On the grounds of fact that Start-up needs a basic grooming, monitoring and mentoring at different levels or stages apart from co-working spaces.
With different core capabilities to run the incubator, Sweken came forward to fill the gap and boost the start-ups, accelerate the growth. Current AP IT policy, Govt came with “Measures for start-up ecosystem development” looking incubators for like us and ready to support for the same. We would like to start the incubation/Accelerator centre of 200 seater capacity (50 Start-ups), in or in the vicinity Visakhapatnam.
How SWEKEN Helps Start-ups
SWEKEN has gained enough experience in running its own business as well as like to become an incubator that helps incubates to connect with entrepreneurs, investors, mentors, trainers, students and faculty.
The team that manages the incubator holds industry experienced persons in different verticals, as they are the ones who will drive the incubator, while start-ups will drive their individual businesses. SWEKEN has good connects to identify a set of advisors – preferably a mix of industry veterans, faculty and investors, which always guides the incubation managers on strategic issues.
Most of the incubators provide space, trainings also may provide opportunity for demo prototypes for investors, but SWEKEN provides a closure and extra hand holding Technical Expertise for their ideas and support all the stages of incubation that boosts their progress to become an entrepreneur, along with other standard needs of incubation.
SWEKEN Incubation centre help entrepreneurs to solve some of the problems commonly associated with running a start-up. SWEKEN provides a unique strategic way of developing start-ups into entrepreneurs.
|STARTUPS STAGES||STAGE LEVEL SERVICES|
|STAGE 1 – IDEA||INDIVIUDAL/GROUP MENTORING|
|STAGE 2 – DESIGN||TRAINING/TECHNICAL EXPERTS SUPPORT|
|STAGE 3 – PROTOTYPE||TECHNICAL EXPERTS SUPPORT/MINIMAL FINANCE|
|STAGE 4 – MARKETING/DEMO/TRAIL||MARKETING/TARGETED CLIENTS MEET|
|STAGE 5 – PRODUCTION||TECHNICAL EXPERT SUPPORT/ ANGEL INVESTOR,BANKS/MARKETING/GOVT SCHEMES/CA/CS SERVICES|
|STAGE 6 – ENTREPRENEUR||TARGET CUSTOMERS/MARKETING/ACCOUNTING|
This is carried out by providing them a few basic services listed below:
- Highly Technical Mentoring assistance (Latest Technologies with Hands on Experienced/Skilled Resources)
- Workspace (Physical & Cloud)
- Marketing assistance ( Branding through Physical & Digital Media for global visibility)
- High-speed internet access
- Accounting / Financial management Tools &Services
- Comprehensive business training programs
- Clients/Investors Visits & Grooming
- Banks/ Govt./Private Funding schemes
A major objective of an incubator is to assist a start-up growth. Incubators solve issues of the start-ups.
Start-ups usually looks from an incubator for access to cheap office space, internet, electricity (the tangible benefits of an incubator) or the spirit to work along with fellow entrepreneurs, chance to meet investors, get access to quality manpower and experienced advisors (the intangible benefits of an incubator). Incubators also connect the entrepreneurs, investors, mentors, trainers, students and faculty.
An incubation centre provides basic infrastructure/resources during setup and operations. Few of them are listed below:
b. Connectivity – internet/telephone/electricity
c. Data centre
d. Services – maintenance, security
e. Furnishing – chair, table, cubicles
f. IT Infra and Support – software, LAN, leased lines, Wi-Fi, printer, scanner, copier, Access control system
g. Others – board rooms, meeting rooms, coffee machines, restaurants etc.
All this comes at a cost, and the incubation centre management needs to generate to resources for the same – in terms of capital, manpower and time
Incubation centre also provides industry linkages, this maybe contact with local entrepreneurs, lawyers, CAs, industry associations like CII, FICCI, etc. or media (TV, print etc.), and other parts of the eco-system like investors.
Incubators makes programs and draws out a calendar of activities which is very important because it keeps Incubation centres always charged. For example, conducting training programs, mentor meets, talks from experts, job fairs, product showcases, technology demonstrations, etc. from time to time helps the community to grow and brings in a great network effect.
Benefits / Discounts for Incubates:
1. Incubate companies involved in Product Development or R&D shall be provided rental discount of 40% in 1st year, 25% in 2nd year & 15% in 3rd year.
2. Incubate companies NOT involved in Product Development or R&D shall be provided rental discount of 20% in 1st year, 15% in 2nd year & 10% in 3rd year.
3. Incubate companies led by SC/ST entrepreneurs involved in Product Development or R&D shall be provided rental discount of 50% in 1st year, 35% in 2nd year & 25% in 3rd year.
4. Incubate companies led by SC/ST entrepreneurs NOT involved in Product Development or R&D shall be provided rental discount of 40% in 1st year, 25% in 2nd year & 15% in 3rd year.
5. Following Additional Discount over and above the existing discounts shall be provided: –
6. For Women Led Entrepreneurs (In case of Non individual enterprises at least 51% of the shareholding and controlling shake should be held by women entrepreneur) :- Additional Discount of 5%.
7. For Divyang-Jan Led Entrepreneurs (In case of Non individual enterprises at least 51% of the shareholding and controlling shake should be held by Divyang-Jan Led Entrepreneur) :- Additional Discount of 5%.
How AP IT Policy – 2021-2024 helps Incubators
ITE&C Department – IT Promotion– Andhra Pradesh Information Technology (IT) 2021-2024Policy – Orders – Issued
INFORMATION TECHNOLOGY, ELECTRONICS and COMMUNICATIONS(PROMOTIONS) DEPARTMENT
G.O.MS.No. 6 Dated: 16-07-2021.
Read the following
1. G.O. Ms. No. 13, ITE&C Department, dated:20.07.2018
2. E-file vide ITC01-IT0PROM(ITPR)/47/2020-PROMOTIONS-IT Policy from ITE&C(Promotion Wing) Department, Government of Andhra Pradesh
Incubation centres, satellite centres, Center of Excellence (CoEs), and laboratories forpromoting emerging technologies
The department shall work towards promoting adoption of niche and emergingtechnologies such as cloud, Blockchain, IoT, cyber security, data analytics etc. in theState, for improved e-Governance, citizen centric service delivery, and attract IT industryworking on latest technologies. Centers of Excellence and prototyping laboratories willbe created to focus on co-creating futuristic ideas into business propositions incollaboration with the private sector, partner incubators/ accelerators for IT startups,incloud computing, AI/ ML, AVGC, and technology platforms for e-Commerce. Satellite centres (plug and play office space for housing satellite offices of IT firms) shall be collocated in the skill colleges or any other suitable locations as decided by the Government.
v. Development of co-working space and IT Towers
The department will strive to create shared plug and play working space, meant for ITindustry, in a transparent Public Private Partnership (PPP) modewherever possible or onits own, and provide a basic set of common amenities expected in a professional workenvironment where enterprises can lease office space on flexible terms.
vi. Aggregation of office space
The department will create a platform to aggregate the plug and play and warm shell IToffice space available in the State so as to make it easier for IT/ IT Enabled Services firmsto find suitable office space for commencing operations.
7. Business process reforms
iv. Infrastructure for IT industry
a. ITE&C department shall strive to offer infrastructure such as land and plug and playoffice space to industry as per the norms of the land allotment agency.
b. The extent of land allotment/ plug and play space to IT industry and their cost andrentals respectively shall be as approved by CCITEI as per the existing guidelines.
c. The land allotment agency shall adhere to such approvals of CCITEI with respect toIT office spaces/ IT parks developed by the Government or its agencies.
8. Fiscal incentives for attracting IT industry
i. Employment creation incentive
a)A one-time incentive of 10 percent of annual salary capped as below:
1) INR 1,00,000 per local employment position for high-end IT jobs created in the State.
2) INR 75,000 per local employment position for mid-level IT jobs created in the State.
3) INR 50,000 per local employment position for entry-level jobs created in the State.
b)Women/ SC/ ST/ BC enterprises shall be eligible for a one-time incentive of 15percent of annual salary capped as below:
1) INR 1,50,000 per local employment position for high-end IT jobs created in the State.
2) INR 1,12,500 per local employment position for mid-level IT jobs created in the State.
3) INR 75,000 per local employment position for entry-level IT jobs created in the State.
c) The criteria for availing the eligible employment incentives in three tranches will bedefined in the operating guidelines.
ii. ‘Work from Home’ incentives
‘Work from Home’ is fast emerging as a trend in the IT sector, with some companieswilling to allow their employees to work remotely for an indefinite period. In this aspect,Andhra Pradesh has the advantage as majority of IT workforce hails from the State.
Hence, the Government is offering the following incentives to encourage IT firms toallow their employees to work from a location in Andhra Pradesh:
A one-time incentive of up to INR 20,000 per employment position to coverexpenses related to remote working hardware, software, bandwidth costs etc. for ITfirms in Andhra Pradesh with remotely working employees within the State. Toqualify for this subsidy, minimum employment criteria would be applicable asStated in the guidelines.
iii. Boost to gig economy
The COVID-19 pandemic has caused disruption in employment opportunities globally, inthe form of job cuts, furloughs, and reduced new hiring. In this context, workingprofessionals and fresh graduates are increasingly turning to a freelance/ gig based workmodel that offers flexibility in working hours and financial stability. The Government isproviding a boost to a gig economy through the following incentives:
a) ITE&C department will create an exchange/ platform for Andhra Pradesh basedfreelance workers, for such workers to register.
b) Reimbursement of 50 percent of cost of buying IT hardware such as laptop, internetdongle, furniture, up to INR 20,000 per gig worker, subject to proof of executing gigsworth at least INR 3 lakhs from Andhra Pradesh in the financial year.
iv. Quality Certification
50 percent reimbursement on quality certification charges up to INR 5 lakhs per firm will beprovided to IT firms.
v. Measures for startup ecosystem development
The following measures are envisaged for assisting startups:
a)Training programs for entrepreneurs with business ideas, to address knowledge gapsin understanding target market, business plan, tax laws, insurance, financial planning,promoting business, sales, service etc. would be imparted
b)Access to market reports and surveys for early stage startups would be provided.
c)Government shall launch a flagship startup promotion scheme for early stage startups,‘Accelerate Startups in Andhra Pradesh (ASAP)’, offering plug and play office space,access to a network of investors, mentors and the State’s trained talent pool. Theseprovisions and other common shared services shall be offered to startups onreasonable charges.
d)A fund of funds of INR 100 Cr. shall be co-created in partnership with a consortium ofVenture Capitals and Private Equity firms and universities, for funding startups in theState.
e)Incubation centers shall be set up in areas notified by the Government from time to time.
f)The department will strive to conduct hackathons and workshops for startups based inthe State, in collaboration with Universities and colleges, to ensure continuousinnovation, and to encourage the development of innovative solutions for Governmentto Citizen (G2C), and Government to Business (G2B) services and other Governmentuse cases.
g) The startups which work on the application of emerging digital technologies such asAR/ VR, AI/ ML, IoT, Data Science, Robotics, 5th generation (5G) cellular network,Serverless Computing, Natural Language Processing, Blockchain etc., and thosewhich address the primary sectors will be provided priority in allotment of plug andplay space, access to talent pool, incubation centers, Centers of Excellence,prototyping labs etc.
vii. Transport subsidy
A transport subsidy of INR 500/- per employment position per month shall be providedfor a period of 2 years, capped to a maximum of INR 10 lakhs per firm.
viii. Incentives to training institutes
Training institutes registered in the State and having a physical premises in the State shall be offered a one-time incentive of INR 10,000/- per local full-time direct employment position facilitated in the State.
i. Andhra Pradesh Electronics and Information Technology Agency (APEITA) will be then odal agency for implementing the Policy.
ii. Further, CCITEI shall be responsible for the following aspects of implementing the Policy:
a) Incentive approvals and administration
b) Land, and plug and play space allotment including land extent