Tech Innovation Grants

₹77,080 Crores allocated by the Government of India for startups and manufacturing in 2025. Yet most founders are still chasing VC money. I work with startups daily, and it surprises me how many don't even know these schemes exist. Here's what's available right now The Big Picture: → Deep Tech & Startup Fund: ₹30,000 Cr → MSME Budget Outlay: ₹23,168 Cr → Startup India Fund of Funds: ₹10,000 Cr → PLI Electronics & IT: ₹9,000 Cr → PLI Auto Components: ₹2,819 Cr → PLI Textiles: ₹1,148 Cr → Startup India Seed Fund: ₹945 Cr This is just the major allocations - there's more buried in smaller schemes. Let me break down what you can actually access based on your stage [1] For Early Stage Startups: 👉🏼 Startup India Seed Fund: Up to ₹50L per startup 👉🏼 SAMRIDH Scheme: Up to ₹40L grants 👉🏼 Atal Innovation Mission: Up to ₹15L for prototypes Most founders think these are too small. But remember, this is non-dilutive capital that can get you to revenue stage. [2] For Revenue Stage Companies: 👉🏼 CGTMSE: Up to ₹2 Cr collateral-free loans 👉🏼 Stand-Up India: ₹10L to ₹1 Cr for SC/ST/Women entrepreneurs 👉🏼 Multiplier Grants: Up to ₹10 Cr for R&D projects This is where it gets interesting. Revenue-stage companies have the best shot at accessing larger amounts. [3] For Manufacturing: 👉🏼 PLI schemes across 14+ sectors 👉🏼 Significant incentives for domestic production 👉🏼 Focus on electronics, auto, textiles If you're in manufacturing, you're literally sitting on a goldmine of incentives. The challenge? Most founders don't know how to navigate the application process. Here's where to start: - Startup India Portal [https://lnkd.in/gBdAH52D] - myScheme Portal [myscheme.gov.in] - SIDBI Portal [sidbi.in] - AIM Portal [aim.gov.in] - MeitY Startup Hub [msh.meity.gov.in] What you actually need: ✓ DPIIT registration for startups ✓ Proper documentation ✓ Clear business plan ✓ Compliance records ✓ Incubator partnerships (for some schemes) I've seen founders spend months preparing pitch decks for VCs, but won't spend a week getting their documentation ready for government schemes. The reality is Government funding is often cheaper, comes with less dilution, and has better terms than VC money. But it requires patience and proper documentation. #startupfunding #manufacturing #debtfunding

₹50 LAKHS GRANT FOR STARTUPS - YET 99% ENTREPRENEURS MISS IT As someone who has built businesses both from scratch and with institutional support, I can tell you one thing: knowing how to raise funds is just as important as having a strong idea. Right now, the Indian government is offering up to ₹50 lakhs to early-stage startups under the Startup India Seed Fund Scheme (SISFS). This is not a loan. This is not equity. This is a pure grant. Yet, most startup founders I meet are either unaware of this or believe it’s too complicated to apply for. Here’s what every serious founder needs to know: 🔹 You don’t need a market-ready product. You can apply even if you're at the idea or MVP stage. 🔹 You must be an Indian citizen with a startup registered in India, under 10 years old, and working on a tech-first or innovation-first model. 🔹 You must not have received prior government funding under any other central scheme. 🔹 To apply, your startup needs DPIIT recognition (which is free and easy to get at startupindia.gov.in) 🔹 Once recognised, go to https://lnkd.in/g66vuPaf, choose three incubators, upload your pitch deck and necessary documents, and submit your application. As an entrepreneur, I’ve often seen amazing ideas collapse due to a lack of funds and access. What I’ve also seen is that those who invest time in understanding government systems and startup policies go a lot further than those who wait for VCs to knock on their door. If you're working on an idea that solves a real problem, don’t let the lack of capital hold you back. 🔹 Pitch clearly. 🔹 Show why your idea is innovative. 🔹 Prove that your team can build it. 🔹 Keep your documents and vision sorted. India has never been more startup-friendly than it is today. But this window will only benefit those who are proactive and informed. If you’re building, I strongly recommend exploring this scheme. Every founder should know this. Every startup should at least try. A good pitch can open a ₹50 lakh door. Sometimes, that’s all you need to go from idea to execution. Watch this space for more such insights. And if you're someone working on a strong idea, now is the time to build. #startupindia #founders #entrepreneurship #startupfunding #SISFS #governmentgrants #businessstrategy

My colleague, Susan Mernit, has a terrific blog post describing how she used not one, but two GPT to develop a grant proposal in a human-centered, ethical way. The grant proposal was a large and complex RFP and she used the focused AI tools to help prepare and edit the grant, along with a team from the organization submitting the grant. The first GPT was named The Brilliant Organization Brain and uses information based on the organization's work, such as impact statements, program descriptions, and mission and vision. She uses it to analyze data, reports, and proposals through the lens of the organization's programs, impact, budget, and mission. The second GPT was called "Funder Focus," and was dedicated to this RFP and reflects the foundation's mission, vision, and goals in awarding and administering this grant program. It knows the grant rules and requirements and can analyze materials and assess strengths and weaknesses. She uploaded the application, announcement, FAQ, and information about five early grantees for this GPT. Creating these custom tools involved fine-tuning pre-existing GPT models with relevant data and defining clear objectives and a GPT-4 pro account. The development costs were minimal compared to the potential benefits, as the tools could be reused for future grant proposals. Her pieces described in detail how to iteratively worked with the two GPTs to draft, edit, and revise the grant proposal. She also describes the process for integrating human feedback from the team into the drafts, and using the GPTs to help revise and focus the description. She also describes in detail a "Human in the loop," process - how she fact-checked or audited for hallucinations, etc. Susan's work flow is one of two approaches for using these tools, dubbed "Centaur and Cyborg" by Ethan Mollick. The Centaur, half-person and half-animal, way of working is let the AI do a first draft and human completes it. The Cyborg is when you work flow is intertwined with the AI. Which approach to use? When doing a simple writing task like drafting an email or brainstorming subject lines, the Centaur works. For more complex projects and to incorporate rounds of human reviews, the Cyborg is the way to go. What you learn by working with the AI is knowing when to leverage your human intelligence and when to let the AI do its thing. Also, what role the AI will play - thought partner or intern. I think it is important to start with a few simple writing tasks to internalize a work flow and then build on it for more complex writing projects. https://lnkd.in/gEZdApE7

After listening to perhaps more than 2,500 pitches over the past 10 years, if I was an entrepreneur, this is how I would do it. 1️⃣ What problem are you solving? • If it’s not a real, painful problem, it’s not worth funding. 2️⃣ How big is this problem? • you have to communicate that if you solve the problem, you win big 3️⃣ How does your solution solve this problem better, faster, or cheaper? • you need to be better than what is currently out there 4️⃣ Who is building this? • The right team is often more important than the idea itself. 5️⃣ Does it work? • Do you have customers? Are they paying? 6️⃣ How much will they pay, and how many customers exist? • Clear unit economics and scalability matter. 7️⃣ How much capital do you need, and at what valuation? • Investors need a path to strong returns. The ask has to align with that. Don’t be afraid to communicate your ask A good pitch is direct and leaves little room for ambiguity. The best founders make it easy for investors to see the opportunity. #Fundraising #VentureCapital #Startups #Pitching

On fundraising and pitching (for early stage enterprise AI startups) Something that keeps coming up in my conversations with founders is how much pitching and fundraising has changed in the AI era. Building is cheap now. You can come up with an idea, build it, and test it at very little cost (unless you're doing something capital-intensive like robotics). It's great time to be building companies but the bar has moved for fundraising. Even at the earliest stages, investors expect more traction because getting to a working product is no longer the hard part. So how do you pitch? 1. Cover the basics You'll be surprised to know how many people don't cover the basics in a pitch meeting. What are you building? Who is building it? Why and why now? What's the vision for what this could become? How much are you raising and what will you do with it? Do you have customers? Do they love the product? How do you know? Will you eventually make money? How? You can add more on pilots, sales cycles, etc., but get these out of the way first. 2. Then mention your spikes I think that most investors invest in spikes, and your ability to <waves hands> figure it all out. Spikes can vary - maybe you've been obsessed with this space since childhood, maybe you have an incredible team, maybe you're just really good at one specific thing. Internalize what you or your company are uniquely good at, and lean into that. Trying to check every box often dilutes the thing that makes you interesting. And you’d be surprised how far that gets you instead of a long list of advisors or flashy names. That’s ok too, but you’re selling yourself short. 3. A few tensions worth addressing (for enterprise AI) And now for the questions that annoy every (enterprise) AI startup founder (I’m sorry but you will get asked these at some point anyway, so you might as well prep for it) a. ⁠“What if OpenAI builds this?" aka what is your wedge?  Could be community, trust, physical goods or hardware. figure out why you're differentiated and defensible b. “Your sales cycles are long" Focus on stickiness, ACV, upsell and cross-sell potential. c. “You have a few LOIs, some pilots, some monthly contracts. What counts as traction?" Walk through what meaningful traction is to you and be clear on what it is rather than what you want it to be. A 3-month discounted pilot with clear graduation terms? That's traction to me. 4. Specificity over polish Some of the good pitches I see are usually not the most polished (I'd be surprised if they were at this stage). But they are able to convey the specifics clearly (on customer, problem, team, outcomes) and signal that this founder is going to figure it all out. Note that I haven’t really talked about TAM or competition. Hot take - at the earliest stages, that stuff matters less than you think. If you're preparing for a raise and want to pressure-test your narrative, I'd love hear from you. Send me a note at aarthi@schemavc.com.

💸 Funding & Grants Series  Climate Incubators & Accelerators Supporting Indian Startups Every time I connect with founders through Bharat Climate Startups, I’m reminded of the one thing that makes or breaks an early-stage climate solution: ecosystem support. From regenerative agriculture to green mobility and plastic alternatives — startups need more than ideas. They need partners, labs, grants, and believers. This post features 5 climate-focused incubators and accelerators in India that offer grants, pilot funding, or non-dilutive support to help climate founders grow.👇 🔹  SINE (Society for Innovation & Entrepreneurship -SINE IIT Bombay and Entrepreneurship) – IIT Bombay 💰 Provides non-dilutive grants and robust incubation support for technology-driven startups, including those in cleantech and climate tech. 📌 SINE’s focus on commercialization and innovation helps transform early ideas into impactful ventures. 🔹 NSRCEL – IIM Bangalore 💰 Supports social and technology startups with incubator programs that include grants, mentorship, and ecosystem access—ideal for climate innovators. 📌 NSRCEL’s extensive network and tailored support have helped many founders accelerate their impact. 🔹 T-Hub –Hyderabad  💰 An accelerator that runs specialized cohorts—including sustainability and climate tech tracks—with grants, pilot funding, and hands-on support. 📌 T-Hub’s dynamic environment connects startups to investors, mentors, and corporate partners. 🔹 Climate Collective – Climate Launchpad & Climate Ready Programs 💰 Grants, pre-seed support & founder mentorship 📌 Focused on cleantech, carbon markets, climate fintech, nature-based solutions 🌱 Supported by European Union, Asian Development Bank, and global partners 📩 Working on a climate solution and exploring incubator or accelerator programs? Drop me a message—I’d love to connect and share insights from my travels across India. Here's to building a vibrant support ecosystem for climate innovators! 💚 #ClimateAction #ImpactFunding #BharatClimateStartups

The worst pitch decks don’t fail because of bad ideas. They fail because of poor storytelling. Healthtech founders often think investors will “get it” if they just see their tech. Spoiler - they won’t. If your STORY isn’t clear, your pitch won’t land. Here’s how you can simplify it: 1. Start with the why, not the what Don’t lead with product features. Start with a real pain point investors can feel, not just understand. 2. Ditch the jargon If they can’t repeat what you do in one line, you’ve lost them. Say: “We help doctors detect cancer 3x faster” Not: “AI-powered clinical decision support system.” 3. Let numbers do the talking Don't claim your product is impactful - prove it. Instead of saying "We're improving patient outcomes," say "Reduced patient readmissions by 25% in 3 months." 4. Make your business model obvious Investors want returns. Who pays? How do you scale? Show the path to profit early - don’t hide it in slide 15. 5. Close with a vision, not just an ask Skip the boring close. Say: “We’re building a future where every patient gets the right treatment - starting with 500 hospitals in 2 years.” The best pitch decks aren’t just data dumps. They’re stories. And the founders who master storytelling don’t just raise money. They build category-defining companies. If an investor only remembers one thing from your pitch, what would it be? #startups #funding #founders #healthtech

Spoke to 3 founders about fundraising yesterday, so I thought I would share my thoughts. You've got your pitch deck ready and pitching like crazy, but it's collecting dust. Why? Because the oldschool pitch deck is dead. It’s like trying to sell a smartphone with a rotary dial. Investors today want more than just slides. They’re looking for something else entirely. Here's what they truly want to see: A Story → Investors still want the Hollywood Hero's Journey. Why are you the one who will build a generational company that will return my entire fund in 5-10 years? ↳ Why will Open AI not destroy you tomorrow? Real-world Applications → Investors want to know how your AI can solve actual customer problems. ↳ Show them how your technology is being used, not just how it could be used. Scalability → Can your AI solution grow with the market? ↳ Demonstrate the ability to scale your product even when the new hotness drops tomorrow. Team Expertise → Highlight your team's ability to execute. ↳ Experience in AI is a must, but so is a diverse skill set. Clear Path to Monetization → How will your AI startup make money? ↳ Investors need to see a clear financial roadmap. Risk Mitigation → Address potential risks and how you plan to manage them. ↳ Transparency here builds trust. Customer Feedback → Showcase testimonials or case studies. ↳ Real user feedback is more convincing than hypothetical scenarios. Market Traction → Show that you've already begun to capture the market. ↳ Numbers speak louder than words. Vision Beyond the Hype → AI is booming, but where do you see your startup in this ecosystem? ↳ Investors want visionaries, not opportunists. The key takeaway? Investors are looking for authenticity and depth. They want to see that you’re not just dreaming big but are ready to execute. Gone are the days when a flashy deck would seal the deal. Today, it's about proving your AI startup's worth realistically. What else am I missing?

📥 Reviewing all inbound pitches Not all investors require warm intros. 💷 Last year I made investments into a material science and a medtech startup, both originating from cold inbound emails. The latter used the following text (copied with permission but with details redacted): "Dear Avonmore Developments I hope you are well. I have been following your investments and compiled a list approximately 4 months ago of who I believe would add huge value for the Medtech [....] start up that I have co-founded with Dr [….] I believe Avonmore Developments would bring immense value beyond just potential investment and would love to pitch our venture (pitchdeck attached). I was a huge fan of OC Robotics that you have invested in previously. Since starting 8 months ago, we have had significant traction with 4/5 grants won, defensible platform IP filing and numerous other prizes. We started our funding round last week and already have £200k committed. We have a deep understanding of our market and expect a 250 million dollar exit in 3 years. To be completely honest, it would be great to just meet Mr Simon Blakey [....]! Best wishes” 💡Why this email stood out: ✔️ Reference to both me and my portfolio (specific reference to Avonmore and a past investment, OC Robotics) ✔️ Evidence of traction (e.g., grant success, IP filing, funding momentum). ✔️ Clear market understanding and a compelling vision for the startup’s future. ✔️ Genuine and personalized outreach, showing they’d taken time to craft their approach. I feel too many pitch emails fail to check even a few of these boxes. Alongside a concise pitch deck, there was enough here to arrange an intro call and the rest is history… 📖 Best of luck to entrepreneurs embarking on their fundraising journeys 🚀 And to fellow investors, especially those at the pre-seed stage: please keep an open mind about those cold inbound pitches! 🙏

Make writing a proposal for research funding easy. Here is how. There is a tendency to rapidly begin filling in the parts of the application form as soon as possible. With a deadline looming, I used to ask all the partners in a consortium project to state filling in their work packages right away after the first meeting. I had a sooner the better mentality. My plan would be that once we had work packages written I would piece them together. The result. Frankenstein projects. Work packages that did not align, and objectives that sounded like they were each describing different projects. It was a writing nightmare. I was trying sew different ideas together. Reviewers see stitches. Like a good scientific paper, a funding proposal has to have a good logical flow. I now realize that the panicked approach I took previously to funding proposal development is not how to do it. It is much better to be 100% certain of the concept. Then write. For some projects this happens very quickly. Other projects take much more time. Sometimes what you are aiming to do is just complicated and full of uncertainties. Take that time. For scientific papers an outline works. For funding proposals the first step is to get all those involved aligned on the concept. This is not to say you don't write anything at all. To the contrary writing is a way to think. But you need to build up the layers. 1️⃣ Describe the problem and what you will do on a high level. 2️⃣ Then the impacts, outcomes and outputs you intend to have 3️⃣ Then the methods. ➡️ Methods are where you often uncover subtleties and problems that were not apparent at first. You need to solve those problems and the accompanying doubts before you can really begin to write. 4️⃣ Then you can build a project plan. Not before. "Give me six hours to chop down a tree and I will spend the first four sharpening the axe." -Abraham Lincoln Take the time to get the concept right, then write.