Technology Incubation and Development of Entrepreneurs (TIDE 2.0) Scheme

The Technology Incubation and Development of Entrepreneurs (TIDE 2.0) scheme was launched by the Ministry of Electronics and Information Technology (MeitY). As per this scheme, the government offers a fellowship or grant to aspiring business owners to stimulate digital entrepreneurship in seven pre-selected, socially significant areas by providing financial and technical assistance.

In this post, we will discuss the Technology Incubation and Development of Entrepreneurs (TIDE) 2.0 scheme in detail.

About Technology Incubation and Development of Entrepreneur

The Ministry of Electronics and Information Technology (MeitY) supports the Technology Incubation and Development of Entrepreneurs (TIDE 2.0) scheme. This multifaceted program aims to promote innovation and support startups working on emerging technologies in the field of Information and Communications Technology (ICT). It also aims to help these young entrepreneurs commercialize their technologies through their ventures.

The government offers grants and fellowships to aspiring entrepreneurs through the Technology Incubation and Development of Entrepreneurs (TIDE 2.0) scheme. This scheme aims to promote tech entrepreneurship through financial and technical support in the seven pre-identified areas of social relevance. Launched in 2008, the TIDE 2.0 scheme aims to support 2,000 tech startups across domains through 51 incubators.

TIDE Incubation Centres offer services to startups and facilitate networking opportunities for survival and expansion. Through angel and venture capitalists, the incubator centres help entrepreneurs grow and mature over two to three years, preparing them to move on to a commercial space where real business is conducted.

MeitY aims to support technology incubation initiatives financially and politically and promote the development of homegrown goods and packages in the ICTE sector.

Aim of TIDE 2.0 Scheme

The Technological Incubation and Development of Entrepreneurs (TIDE 2.0) scheme aims to support higher education institutions in strengthening their technology incubators, enabling young entrepreneurs to launch technology startup businesses and profit from their inventions. 

Technology Incubation and Development of Entrepreneurs (TIDE-2.0) aims to support 2000 Technology Startups in specific areas of national interest by utilizing ICT-enabled technologies.

Objectives of Technology Incubation and Development of Entrepreneurs

The TIDE 2.0 program aims to create independent entrepreneurs by bolstering technology incubators in universities and fostering the development of technology entrepreneurship to enable the commercialization of homegrown technologies.

It also aims to encourage product-focused research and development, promote the creation of domestic goods and packaging, and bridge the R&D and commercialization gaps.

Benefits of the TIDE-2.0 Scheme

TIDE 2.0 offers various benefits, some of which are listed below:

1. The TIDE-2.0 program creates and promotes a thriving entrepreneurship ecosystem that supports and encourages aspiring entrepreneurs.
2. Through this program, entrepreneurial models with both social and financial value will be produced.
3. The program offers entrepreneurs comprehensive incubation support, including co-working space, networking opportunities, and mentoring.
4. Nearly 2,000 digital businesses across India receive financial help from Technology Incubation and Development of Entrepreneurs (TIDE-2.0), which supports 51 incubators.
5. Offers financial assistance to startups.
6. Encourages entrepreneurs to file intellectual property rights applications.

Features of TIDE 2.0 Scheme

The salient features of TIDE 2.0 scheme include:

1. Cultivating a thriving environment for entrepreneurship that supports and encourages aspiring entrepreneurs.
2. Developing entrepreneurship models with a focus on social and financial value.
3. Offer comprehensive incubation support to entrepreneurs, such as co-working space, networking, and mentoring.
4. Supplying 51 incubators with funding and around 2,000 IT businesses throughout India.
5. Facilitating IPR filings to offer financial support for startups.

Focus Area

The Technology Incubation and Development of Entrepreneurs (TIDE-2.0) scheme was launched to help budding enterprises develop creative technological solutions to address societal problems in finance technology, clean energy, healthcare, education, agriculture, and the environment.

Who is Eligible to Apply for TIDE 2.0 Scheme?

The following are eligible to apply for the TIDE 2.0 scheme:

1. Any individual
2. Startup
3. Student at TRL 3 with a viable and creative business idea

The following startups are eligible to apply for the TIDE 2.0 scheme:

1. Ideation Stage Startup
2. Validation Stage Startup
3. Early Traction Startup

The program is open to technology-based businesses utilizing cutting-edge solutions in the following industry types:

1. Analytics & Advertising
2. Architecture Interior Design
3. AR VR (Augmented + Virtual Reality)
4. Automotive, Art & Photography
5. Animation, Chemicals & Computer Vision
6. Telecommunication & Networking
7. Construction, Agriculture, Aeronautics Aerospace & Defence
8. AI, Green Technology, Events, and Fashion
9. Finance Technology, Enterprise Software, Food & Beverages
10. Design, Dating Matrimonial, Education & Renewable Energy
11. Technology Hardware, Healthcare & Lifesciences
12. Internet Of Things, IT Services & Human Resources
13. Marketing, Nanotechnology & Non-Renewable Energy
14. Pets & Animals, Media & Entertainment
15. Retail, Household Services, Professional & Commercial Services
16. Sports, Social Impact & Social Network
17. Textiles & Apparel, Indic Language Startups
18. Transportation & Storage
19. Logistics, Toys and Games, Travel & Tourism
20. Security Solutions, Airport Operations & Real Estate
21. Other Specialty Retailers, Safety, Robotics
22. Passenger Experience, Biotechnology & Waste Management

Relevant Service Type

The following service types are eligible to apply for TIDE 2.0:

1. Government & Hyperlocal
2. Discovery & Location-Based Services
3. Manufacturing & Marketplace
4. Mobile & Offline
5. Online Aggregator & Peer-to-Peer
6. Platform & Consulting
7. Consumer Internet & Engineering
8. E-Commerce & Rental
9. Enterprise Mobility & Research
10. Sharing Economy & Social Enterprise
11. SaaS & Subscription Commerce

Eligibility Criteria

Details about the eligibility criteria to apply for TIDE 2.0 as follows:

Eligibility Criteria for Startups

1. A startup which is less than seven years old
2. Startup with DIPP recognition with Startup India.
3. If the startup does not have DIPP recognition at the time of grant application, it should ensure that it gets it before receiving funds under the scheme.
4. Founders of applicant startups should have a minimum 51% stake in the company.
5. The startup should have a professional team on board.

Startup founders need to proceed with Startup India registration for their ventures to take advantage of the TIDE 2.0 Scheme. Registered startups are fit for this criteria.

Eligibility Criteria for Student Startups

Student startups with the following eligibility criteria can apply:

1. Proposals from Startups/students are accepted.
2. Proof of Concept ideas
3. Products in the Prototype or pre-commercial stage
4. If the startup is in the revenue stage or has raised funds previously
5. If the student of the startup is in their final semester.
6. Startups not incubated at any incubation centre must associate with KLTIF for the project duration and submit an undertaking when applying.

Note on MeitY Startup Hub and TIDE 2.0

The Union Ministry of Electronics and Information Technology established the MeitY Startup Hub to create a single chain connecting investors, innovators, startups, and specialists.

Under this program, the ministry conducts technology challenges, offers financial support to MSMEs and Technology Startup units for filing international patents, and supports TIDE incubation centres. MeitY Startup Hub (MSH) provides help for testing, research, and angel investor connections for businesses, among other facilities.

TIDE Incubation Centres

TIDE incubation centres serve as a bridge between the government, the general public, or any organization with a creative idea for launching a new venture or growing an already established digital company.

TIDE 2.0 Incubation Centres

TIDE 2.0 incubation centres are higher education and research institutions with incubation facilities and established connections with major corporations, trade associations, and industrial clusters. These centres aim to nurture a modest idea or a new startup into a huge corporate organization.

Groups of TIDE 2.0 Centres

The TIDE 2.0 centres are mainly divided into three groups:

1. Group 1 centres: Group 1 centres provide comprehensive assistance to nascent enterprises through mentorship, capacity building, and industry connections to expand investment opportunities and support Group 3 centres. Group 1 consists of six centres, all housed at educational institutions, specifically IIT Hyderabad, IIM Ahmedabad, IIT Kanpur, IIT Bombay, and IIM Calcutta.
2. Group 2 centres: Group 2 centres assist students and budding business owners in creating great startups managing and nurturing Group 3 centres. These centres are scattered among Indian universities and smaller private academic organizations. Some incubation centres include KIIT University, KIIT Technology Business Incubator, Bhubaneswar, AIC—Pinnacle Entrepreneurship Forum, Vellore Institute of Technology—Technology Business Incubator (VITTBI), and Pune.
3. Group 3 centres: Group 3 Centres (G3C) launch and promote the ecosystem for innovation and entrepreneurship in uncharted territory. These usually include newly created incubators in academic institutions. G3Cs bring entrepreneurship and innovation to areas where ecosystems are non-existent or are dormant. Twenty of these incubators are suggested to be chosen as G3Cs.

Application Procedure

There are a set number of seats in each incubator. The Entrepreneur-in-Residence program is open for applications, as stated on the websites of the several TIDE 2.0 Incubation Centres.

Eligibility for EiR (Entrepreneur in Residence):

1. The applicant must be an Indian citizen.
2. Must be a final-year student or possess an undergraduate degree.
3. Should not be dependent on any other financial source.
4. They should dedicate all of their attention to developing their business idea.
5. Should not be a shareholder, promoter, or recipient of benefits from other businesses.

Eligibility for Grant:

1. The applicant must be a resident of India.
2. Must be a final-year student or an undergraduate degree holder.
3. Must be eligible to file a limited corporation.
4. Must convert a clear Proof of Concept (PoC) into a Minimum Viable Product (MVP).

Focussed Sectors of TIDE 2.0:

1. Healthcare
2. Education
3. Agriculture
4. Infrastructure & Transportation
5. Environment & Clean Tech
6. Clean Energy Solutions
7. Financial Inclusion, including Digital Payments
8. Other Emerging Areas
9. Strategy to help tech startups in ICTE areas address societal issues

Financial Support

1. Entrepreneur in Residence (EiR): Any applicant with an idea may be eligible to receive one of four one-year EiR Fellowships, each worth INR 4 lakhs, so they can start working on developing and validating their concepts.
2. Grant: Applicants with a Proof of Concept (PoC) may be eligible for four grants worth INR 7 lakhs for one year. After receiving a PoC, the applicant may start the work on turning their idea into a Minimum Viable Product (MVP).

How to Apply for TIDE 2.0 Scheme?

Startups can apply for the TIDE 2.0 scheme to receive benefits by following the following steps:

1. Select the Incubation Centre: From the TIDE 2.0 approved centres list, startups should select the closest or best incubation centre.
2. Create a Comprehensive Proposal: Create a thorough proposal that outlines the business concept, technological advancement, potential market, and necessary funding.
3. Submit the Application: Send the proposal and application to the chosen incubation centre. A group of experts will then assess the application.
4. Evaluation and Selection: The ideas are assessed for originality, viability, and potential influence. After selection, financial and incubation help is extended to the chosen startups.

Conclusion

Technology Incubation and Development of Entrepreneurs or the TIDE 2.0 scheme reflects the Indian government’s dedication to creating a thriving startup environment. TIDE 2.0 enables technology-driven businesses to grow, innovate, and contribute to the nation’s economic development by offering funding, mentorship, and infrastructural support. To push India into a future of technological brilliance, aspiring business owners and startups should take advantage of this chance to realize their technological breakthroughs.

Frequently Asked Questions

Read our article: Detailed Procedure For Registering Under Startup India Scheme