Chameli Devi Group of Institutions

CDGI Start Up Business Fund

.Fostering Entrepreneurship

Table of Content

1. Introduction and Background

2. Objective

3. Proposed Structure of the Fund

4. Process

5. Committee

6. Operation Process Flow Chart

7. Guideline for Venture Funding

8. Annexure 1 (Initial Submission Report Format)

9. Annexure 2 Business Project Report

1. Introduction and Background

CDGI has always strived hard to promote and encourage innovative attitude in their students. Taking a step ahead to fulfil his dream of providing an entreprenuial platform to its patrons, Chairman od CDGI (Agarwal Group) Shri Vinod Agarwal has decided to create a fund to help achieve the dreams of hundreds of alumini and students that are thriving to blossom themselves into an enterpreneur.

This fund will be used to provide Financial Assistance to Alumini and Existing Students who are seeking to raise borrowed capital for their prospective business venture. A committee will be formed to decide upon the terms and conditions of such assistance and to check up on the adherence of such terms and conditions.

The fund will help new and talented entrepreneurs of CDGI, who look forward to start, innovation-based new enterprises but are restricted due to inadequate finances.

2. Objective

The core purpose is to support, provide opportunities and promote entrepreneurship

among students of CDGI & its alumni to convert their dreams into reality

3. Proposed Structure of the Fund

Seed (Incubation) Funding

Venture Funding (Start-Up)

Venture Funding (Expansion)

4. Process

Students & Alumni need funding under this program must submit an application and go

through an interview process with various committees formed and present a business plan.

Post approval of fund & legal teamwork done, monitoring committee will review the fund as &

when required.

Exit plan as per legal document signed

5. Committee

1. Screening Committee There will a screening committee which will be the first contact point

for the student. This committee will have 4 members. This committee will receive the draft

proposal from the student.

A. Composition of the committee will be as follows:-

o One technical person (Engineering background) with more than 10 years industry

experience

o One management expert with more than 10 years industry experience.

o 2 Persons from different fields who have some entrepreneurial exposure

B. Draft Proposal:-

Student will submit a draft proposal to the screening committee as per the format given in Annexure 1

C. Screening committee will have 7 days time to study the plan with the power to accept or reject

the idea. In case they find the idea good but not presented in suitable manner they can ask

the student to improve upon the idea and submit a fresh plan.

2. Technical Committee Screening committee may receive some proposals which may

include very technical information and procedures. In case screening committee feels that

plan requires detailed technical study then they may refer the plan to the Technical Committee

which will have 6 members having different domain expertise.

Ideally there should be one member each from CS, Mechanical, Electronics, Electricals, Marketing and Finance dept. Persons with industry experience and/or entrepreneurial exposure will be preferred. Technical Committee will have 7 days to study the plan with the power to accept or reject the plan. They may also call the student for clarification and ask him/her to improve the plan and submit fresh proposal. Once a plan is approved by the Technical committee they will send it back to screening committee.

3. Detailed Business Plan Screening committee will now ask the student to submit a detailed

business plan (Format given in annexure 2) within 10 days. Student will also prepare a

power point presentation and do the presentation in front of screening committee members.

Screening committee shall have the responsibility to ensure that Business plan has been

prepared carefully keeping in mind all related aspects of business (Finance, technology,

marketing etc). Screening committee will then forward the Business Plan to the core

committee.

4. Core Committee Core committee will be the supreme body with the power to accept or

reject any proposal within 15 days. There will be members from management and its

representative. Student will submit his business plan in hard copy. Core committee after

reading the plan will then provide a suitable date for student to do a power point presentation.

Student will do power point presentation of business plan on the given date and face

questions from core committee members.

In case a proposal is accepted by the core committee they will provide their approval and sanction the required amount.

5. Monitoring Committee Monitoring committee will have the responsibility to continuously

monitor the approved project and ensure that project is being implemented properly and

amount sanctioned is being spent judiciously. Any fund exceeding Rs. 1 lakh will be

sanctioned in 3 installments. First installment will be disbursed immediately after the approval

by the core committee. 2nd and 3rd Installments will be disbursed after recommendation from

the monitoring committee which will ensure that amount sanctioned earlier has been utilized

properly. Monitoring committee will require one dedicated resource that will be in-charge

and would coordinate with different projects. Other members will include Senior academics,

members from E-cell and representative from T&P Dept.

6. Mentoring Committee Once a plan is approved and amount sanctioned; student will start

working on his plan and monitoring committee will guide and monitor them. It is also felt that

industry experts are engaged at this step and discuss about the project. Thus it is proposed

that some industry experts are requested to work as mentors of the students and guide them

wherever required. Industry experts will be shortlisted based on the nature and area of the

project.

7. Appraisal Criterion At every step and for every committee appraisal criteria will be as

follows:-

Technical Feasibility Whether this product with suggested technology can be made?

Market Feasibility Whether this product/service can be sold?

Financial Feasibility - Financial Feasibility Whether BEP can be met and profits can

be generated afterwards?

Operational feasibility

Break Even Point and Period

Pay Back Plan

6. Operational Process Flow Chart

Core Committee

(Yes/No/Improve)

(30 days)

Monitoring Committee

Technical Committee

(Yes/No/Improve)

(7 days)

Screening Committee

(Yes/No/Improve)

(7 days)

Mentoring Commitee

(Industry Experts)

7. GUIDELINES FOR VENTURE FUNDING

1. Eligible students for Venture Funding of CDGI:

a. Student of CDGI.

b. Alumni of CDGI.

2. Purpose :

a. To get seed capital for setting up new business and further supported by venture funds

to grow their business.

b. Students who have already set up their own business can also get funds to grow their

ventures.

3. Stages in Venture funding :

a. Seed Capital ( for incubation)

b. Venture funds (for new business)

c. Venture funds (for expansion of existing business)

4. Rules and Regulation:

a. After getting approvals from all the committees, students are required to fill an

application form.

b. It will be a Fund based services. Only monetary assistance will be provided to

students.

c. The student will have the sole copyright/patents of their business Idea. It will be

confidential on the part of CDGI.

d. Funding eligibility: For example-The student must contribute some percentage of

project cost on his own. It must be at least 10% of project cost. However it can be

relaxed as per the quality and skill set of student and project.

e. There will be sanctioning limit for projects.

i. Seed Capital: ?

ii. Venture Funding (for new start up): ?

iii. Venture funds (for expansion): ?

f. Suggested ownership arrangement and Investment method.

i. Mortgage free loans at nominal interest rates

ii. Profit sharing Percentage

iii. As Promoter/Partner

iv. As Board Member/Shareholder

g. Seed capital for start ups can be financed in One Installment.

h. Venture funding for expansion can be done in installments depending upon the

requirement of student.

i. Exit Plan: It can also be finalized after negotiating with student.

i. By selling rights of the company (logo name, copyright, patents)

ii. After Achieving BEP by company

iii. Repayment of Capital along with interest

iv. After achieving profitability of company

5. List of documents required to be submitted to avail Seed Capital funding.

a. Application form

b. Identity card of institute/mark sheet of student

c. Agreement copy between start up and venture capital firm.

d. Sales tax number including tin number

e. DIC registration copy

Annexure 1 (Initial Submission Report Format)

Title of the Business Idea Detail of Team

Name of team members with qualifications

Contact numbers of team members with email id

Address of team members

The business proposal shall cover following points:

1. THE BUSINESS CONCEPT

What is the product/service idea

Innovativeness of the idea

2. COMMERCIALISATION

How it will be marketed

How will you reach your customers

3. REVENUE MECHANISM

What will be the cost & price of products/services

How business will earn profit

4. FINANCIAL REQUIREMENT

How much money will be required to make prototype, provide breakup under

various heads

How much money will be required to initiate the work

Annexure 2: Business Project Report

(Final Plan Outline)

1.0 Introduction

1.1 Objective 1.2 Mission 1.3 Keys to Success

2.0 Your Company

2.1 Company Ownership 2.2 Company History (for ongoing companies) or Start-up Plan (for new companies) 2.3 Company Locations and Facilities 2.4 Necessary approvals, Licenses required

3.0 Products & Services

3.1 Product and Service Description 3.2 Competitive Comparison 3.3 Sales Literature 3.4 Sourcing and Fulfillment 3.5 Technology

4.0 Market Analysis Summary

4.1 Market Segmentation 4.2 Target Market Segment Strategy 4.2.1 Market Needs 4.2.2 Market Trends 4.2.3 Market Growth 4.3 Industry Analysis 4.3.1 Industry Participants 4.3.2 Distribution Patterns 4.3.3 Competition and Buying Patterns 4.3.4 Main Competitors

5.0 Strategy and Implementation Summary

5.1 Value Proposition 5.2 Competitive Edge 5.3 Marketing Strategy 5.4 Positioning Statements 5.5 Pricing Strategy

5.6 Promotion Strategy 5.7 Distribution Patterns 5.8 Marketing Programs 5.9 Sales Strategy 5.10 Sales Forecast 5.11 Milestones

6.0 Management Summary

6.1 Organizational Structure 6.2 Management Team 6.3 HR Plan

7.0 Financial Plan

7.1 Important Assumptions 7.2 One year Projected Expense Details 7.3 One year Projected Income Details 7.4 Projected Profit and Loss 7.5 Break Even Analysis

8.0 Appendix