A Simple Guide to Securing Incubation and Grants for Your Startup

Starting a new venture can be tough, especially when it comes to getting the right support and funding. I went through many rejections before I finally got into three great incubators and received the Startup India Seed Fund Grant. In this article, I’ll share what I learned about choosing incubators, finding grants, and knowing when to approach investors.

1. Finding the Right Incubator

Why Incubators Matter

• Mentorship & Workshops: Incubators offer a structured environment where you can learn from experts and join workshops that refine your business model.
• Networking: You connect with other founders facing similar challenges, and that community often leads to valuable partnerships.

Research & Apply

• Explore Options: Focus on incubators that align with your startup’s domain (e.g., tech, healthcare, social impact). Start with these two portals first: Startup India Incubator Portfolio & f6s.
• Check Their Track Record: Look at past cohorts, success stories, and the industries they’ve supported well.
• Customize Your Application: Show how your startup is a great fit for their focus areas. Demonstrate a clear business plan and the problem you aim to solve.

Stay Connected

• Follow Incubators on LinkedIn: Turn on notifications for updates on upcoming cohorts and funding programs. Incubators keep posting online application forms links to enroll for new upcoming programs.
• Attend Events: Join their virtual or in-person meetups and webinars to learn and make important connections.

2. Exploring Grant Opportunities

Why Start with Grants?

• Equity Preservation: Most grants don’t require you to give up any stake in your startup.
• Credibility: A recognized grant can boost your reputation when you later talk to investors.

Examples of Grants

1. Startup India Seed Fund – Seed Fund Grant helps with early-stage expenses like product trials and initial market entry.
2. NIDHI-Prayas – Ideal for turning an idea into a workable prototype.
3. Meity Startup Hub – Often supports tech-driven or innovation-focused startups.
4. Other Grants – There are state-level and industry-specific grants, plus international funding for social-impact ventures.

Applying for Grants

• Organize Yourself: Maintain a list of deadlines and requirements.
• Prepare Your Documents: Have a solid business plan, pitch deck, and financial projections ready.
• Be Persistent: If you’re rejected, refine your approach using any feedback you received and apply again.
• Pitch Deck Format: (fig: Pitch Deck Template) is a sample pitch deck structure, follow this guide to make your own pitch deck similar to this template: What is a Pitch Deck? Examples, Tips and Templates. While some incubators or grant programs may require slightly different formats, most slides are often very similar, so you can adjust easily.

3. Validating Your Idea First

Build a Prototype

• Show It Works: Create a Minimum Viable Product (MVP) or demo to prove the core concept.
• Collect Feedback: Ask real users to test your prototype. Their insights help you improve early.

Get Early Traction

• Pilot Programs: Even a small number of paying customers or beta users makes your startup more attractive to both grant committees and investors.
• Market Validation: Demonstrating real user interest and potential market size gives you a big advantage.

4. Approaching Investors

When to Seek Investment

• Secure Grants First: Grants help you build a version of your product and gain traction without losing equity.
• Proof of Concept: Investors typically prefer startups that have a working prototype or paying customers.

Equity & Valuation

• Understand Equity: Investors will take a share of your company in exchange for funding.
• Do Your Homework: Study your market, plan your finances, and set a valuation that’s realistic but fair.
• Read the Fine Print: Consult legal advisors if you’re unsure about any terms in the term sheet.

Be Strategic

• Never Give Equity to Incubators: Pay their program fees instead. Only in rare cases should you give equity, and only if the incubator provides significant strategic advantages like top-tier mentorship or unique connections.
• Avoid Unnecessary Dilution: Keep as much equity as possible for strategic investors and partners.

5. Key Takeaways

1. Choose Incubators Wisely: They can provide a lot of support in your early days.
2. Start with Grants: It’s usually non-dilutive and helps you build credibility.
3. Validate Your Idea: A working prototype or early traction will strengthen all your applications and pitches.
4. Keep Learning: Each rejection is a chance to refine your approach.
5. Protect Your Equity: Give up equity only when it provides a real boost to your startup’s growth.

7. My Experience & Key Insights

My journey involved many rejections before securing the right incubators and the Startup India Seed Fund Grant. Each "no" pushed me to improve my product, pitch, and overall strategy. If you approach this process systematically, researching incubators, applying for grants first, validating your product, and then talking to investors, you’ll increase your chances of success. Stay persistent, and remember, it only takes one "yes" to change everything.

I started this journey because I was passionate about creating a sustainable startup with a positive environmental impact. Initially, my mentor, Pratik Jani sir, encouraged me to keep applying for grants online. At the 100X.VC Walk-in Pitching Day in Mumbai, Mr. Ninad Karpe said that founders pitch to around 65 investors before getting funded. That’s when I started posting on LinkedIn with the hashtag #PitchTo65 to document my journey.

I ultimately secured my first funding through the Startup India Seed Fund Grant at VJTI TECHNOLOGY BUSINESS INCUBATOR using this approach. Although I don't know the exact number of incubators and grants I applied to, it was less than 65 for sure.

If this guide helped you, or if you have any questions, feel free to leave a comment or connect with me here on LinkedIn. Let’s support each other in building successful startups!