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Funding incentives have been defined based on the life cycle stages of startups –

Pre Seed & Seed Stage

Growth Stage

The government had introduced an assessment program for Startups, QRate Startup rating, which provides detailed assessment report on Startup’s potential and investment worthiness. The rating is based on assessment score and varies from Bronze, Silver, Gold, Platinum to Signature. The rating shall be used to grade eligible startups in order to provide differential incentives to each category as part of the policy.

Funding Incentives

An initiative to spur entrepreneurship across Rajasthan

The need for Startup Pre Seed & Seed stage

Financial support will be provided to encourage startups to generate novel ideas and boost innovation in the State across Pre-seed and Seed stages.

A. Ideation grant For Pre Seed Stage Startups

B. Viability grant for Seed Stage Startups

Pre Seed  & Seed stage
A. Ideation grant For Pre Seed Stage Startups

This incentive only applies to Pre-Seed stage startups.
All Pre-seed stage startups registered under the i-Start program shall be eligible to a grant of INR 2,40,000, provided the idea meets the criteria set by the Evaluation Committee, as notified by the government from time to time. Startups which have more than 50% equity with women founders (detailed in Section 14) will be provided an additional INR 60,000.

B. Viability grant for Seed Stage Startups

This incentive only applies to Seed stage startups.
Startups registered under the i-Start program of the Government shall be eligible for Viability grant as defined in Table 1. The eligibility and provision for the incentive will be notified by the government from time to time.


QRate Categories Incentives Maximum Time Period for Additional Grant
Startups registered under i-Start (Non QRate), subject to evaluation by the committee Grant of INR 10 lakhs Not applicable
Bronze (QRate score 1-20) Grant of INR 20 lakhs 3 Months
Bronze (QRate score 20-40) Grant of INR 30 lakhs 3 Months
Bronze (QRate score 40-50) Grant of INR 40 lakhs 3 Months
Silver & Above Grant of INR 60 lakhs 18 Months

Startups that are able to upgrade their QRate score within the maximum defined period in Table 1 shall be eligible for additional Viability Grant as per the respective slab. The time period mentioned will be calculated from date of upgrade of last attained QRate score to new QRate score. For e.g.

  • A startup with QRate score of 10 receives INR 10 Lakhs Viability Grant and
  • It upgrades the QRate score to 30 within 3 months, then the Startup shall be eligible to receive additional 10 Lakhs basis the new slab.

Growth Stage of the Funding

Growth Stage of the Funding

The State shall provide additional support to enable Startups to scale up their venture once they have qualified the criteria set by the Committee, as notified by the Government from time to time.

A. Scale Up Fund

B. Startup Equity Fund

A. Scale Up Fund

The State shall provide financial support to Growth Stage startups through Scale up Fund, upto a maximum of 50% of the total amount raised, subject to ceilings highlighted in Table 2. The Fund will be provided as debt convertible to grant. The eligibility and provisions for the Fund will be notified by the Government from time to time.

QRate Categories Incentives Maximum Time Period for Additional Grant
Bronze Upto INR 1 Crore per Startup Not applicable
Silver Upto INR 1.5 Crore per Startup 18 Months
Gold and Above Upto INR 2 Crore per Startup 30 Months

Startups that are able to upgrade their Q-Rate score within the maximum defined period in Table 2 shall be eligible for additional Scale Up Fund as per the respective slab. The time period mentioned will be calculated from date of upgrade of last attained Q-Rate score to new Q-Rate score. For e.g. A startup with Bronze Q-Rate receives INR 1 Crore as Scale Up Fund and it upgrades to Solver within 18 months, then the Startup shall be eligible to receive additional INR 50 Lakhs basis the new slab provided the total Fund does not exceed 50% of the funds raised.

B. Startup Equity Fund

The State has setup an Alternative Investment Fund (AIF) to provide funding support to Startups in the form of equity. The government will match the amount of fund raised by the eligible Startup upto INR 5 Crore per Startup.

A Growth Stage Startup will have an option to choose between Scale up Fund and Startup Equity Fund.

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