In the idea-to-market innovation chain, while there are mechanisms and support available for R&D and commercialization, support for early-stage prototyping is currently deficient. Many innovators lose interest and are not able to sustain this journey in the absence of critical support for technology development, idea formation, proof of concept, prototyping, IPR, and other knowledge-related aspects of innovative startups at incubators.

There is a definite need to address the gap in very early-stage idea/proof-of-concept funding. Thus, the program supports startups and innovators in progressing their ideas from TRL 2 to TRL 5, i.e., advancement of innovation and its commercialization.

Objective of Prototype Fund

• To enable the translation of an innovative idea into a prototype through POC/Prototype funding grants of up to Rs. 10 lakhs.
• To provide a platform for faster experimentation and modification of approaches in the idea-to-market journey.
• To indigenously generate innovative solutions relevant to local and global problems.
• To attract a large number of youth who demonstrate problem-solving zeal and the ability to work on new technology-, knowledge-, or innovation-based startups.
• To enhance the quality and quantity of innovative startups entering incubators.
• To build a vibrant innovation ecosystem by establishing a network between innovators, academia, mentors, and incubators.

Prototype Fund Usage Guide

• Outsourcing charges for research and development, design engineering, consultancy, testing, or expert costs.
• Raw materials, consumables, or spares.
• Fabrication or synthesis charges for working models or processes.
• Business travel and event participation fees (ceiling of 10% of the approved Prototype Grant).
• Patent filing costs, including PCT (ceiling of 10% of the approved Prototype Grant).
• Contingency (ceiling of 10% of the approved Prototype Grant).

Expected Outcome of the Prototype Fund

The outcome of the Prototype Fund program will be analysed based on any of the following parameters:

• 60% of the innovators should have a working prototype within 18 months.
• Progress towards IP filing and commercialization in the form of licensing or a start-up.
• Funding/investment received.
• Expression of interest from manufacturers.