BIRAC SEED Fund — up to ₹30 Lakh Equity for Post-PoC Biotech Startups, Through BioNEST Incubators
The bridge across the first valley of death
BIRAC's SEED Fund exists for the moment after proof of concept, when a biotech startup has data but not yet enough to interest an angel. BIRAC gives selected BioNEST incubators a corpus of ₹2 crore per cycle; the incubator invests it in its startups as equity or equity-linked instruments, up to ₹30 lakh each. By February 2023 the fund had backed 112 startups, 71 of which went on to raise ₹398 crore in follow-on capital.
The design has a ceiling by intent. Startups that need more than ₹30 lakh are directed to BIRAC's LEAP Fund, which runs from ₹30 lakh to ₹1 crore through the same incubator network.
What the investment looks like
| Item | Position |
|---|---|
| Amount | Up to ₹30 lakh per startup |
| Instrument | Equity or equity-linked — typically compulsorily convertible debentures held by the incubator |
| Purpose | Product development, validation, regulatory work and early commercialisation to reach angel or VC readiness |
| Support | Incubator mentoring, wet-lab access and BIRAC's network |
BIRAC and the incubator
BIRAC selects the incubators — they must have run under BioNEST for at least three years, with in-house capacity to incubate and mentor biotech startups and IP facilitation services — and audits the deployment. The investment decision on a startup is taken by the incubator's seed committee under BIRAC's guidelines.
Who can be funded
- •Biotech, med-tech or life-sciences startup registered in India
- •Incubated at a BioNEST incubator that is a SEED Fund partner
- •Past proof of concept, with data supporting the next development step
- •Private limited company preferred, as the instrument is equity-linked
- •Need of ₹30 lakh or less — above that, LEAP
What the incubator's seed committee reviews
- •Certificate of Incorporation, MoA/AoA, shareholding pattern and cap table
- •Incubation agreement with the BioNEST partner
- •Proof-of-concept data, BIG final report if funded earlier, and technical validation results
- •Business plan with market, regulatory pathway and commercialisation timeline
- •Use-of-funds plan and milestones for the investment
- •Financial statements to date and projections
- •Founder KYC, team CVs; IP filings
- •Any existing investor agreements or convertible notes
Questions founders ask about the SEED Fund
No. SEED is an investment — the incubator holds an equity-linked instrument in your company. BIG is the grant; SEED is what typically follows it.
BIRAC lists its SEED Fund partners on the scheme page; they include Venture Center Pune, FITT at IIT Delhi, C-CAMP and other established BioNEST incubators.
Yes. Med-tech and life sciences are inside the scheme's scope alongside classical biotech.
Typically on conversion at the next priced round or through a buy-back on agreed terms. The instrument terms are set at investment.