Policy Objectives:


The goal of Technology Enabling center (TEC) at Anna University is to promote technology based entrepreneurship and thereby facilitate practical application of knowledge for public use. TEC, Anna University, wishes to facilitate the creation of ideas and inventions that benefit society. To this end, TEC, Anna University has adopted this Incubation Policy to provide guidance and management structure to facilitate development of entrepreneurship.
The scope of this document is to define the policies and procedures for the operational matters related to the TEC, Anna University. It covers the following processes:
1. Eligibility
2. Admission procedure
3. Infrastructure and Services provided to incubates
4. Mandatory Mentorship
5. Period of Incubation/ Exit
6. Intellectual Property evaluation
7. Seed funding
8. Periodic assessment
9. Consideration
10. Conflicts of interest
11. Disclaimer
12. Agreements
13. Special provision for Pharma & Biotech companies
14. Auditing/Accounting & Compliances norms

The policy is subject to periodical review and amendments. It will be the responsibility of the companies admitted to TEC to update themselves from time to time on amendments in Incubation policy and procedures. Anna University reserves the rights to make an exception of all or any of the terms of policy for a particular company or a promoter on a case to case basis.

I. Eligibility:

Any person desirous of availing incubation facilities has to incorporate a private/public limited company or Limited Liability company or partnership company under the Indian Companies Act and apply in the prescribed format (attached herein as Annexure-1) along with required documents. No application for incubation can be entertained if the applicant has not incorporated a company under the Companies Act. Companies that are promoted by students enrolled for full-time Degree at an educational institute shall not be offered incubation if student is holding Executive position, however companies promoted by students are eligible to apply for incubation provided student is not actively engaged with the company beyond any engagement which may be permitted by the Institute. A company if it is promoted by regular Government staff or employee shall be granted incubation only upon submission of “No Objection Certificate” from the competent authority or employer. However, companies having employees as shareholders are eligible to apply for incubation. Any company that is or proposing to be engaged in imparting educational courses and/or training program including vocational programs or is planning to undertake such activities during or after its incubation at TEC, Anna University is not deemed eligible for incubation and their application will not be entertained.

II. Admission Procedure: Following admission procedure would be followed:

All the applicants shall have to read and agree to the „terms and conditions‟ of the incubation, their applications shall be processed only when they agree to the „terms and conditions‟ of TEC, Anna university.

STAGE 1: Submit Executive Summary or Business Plan
As a first step in the admissions process, the prospective company should submit an Incubation Application containing the business plan, Certificate of incorporation and Memorandum & Articles of Association, GST certificate and other documents related to company incorporation. However, if the incubates need a consultancy for company formation, they can avail those services from TEC appointed consultancies on direct chargeable basis. TEC, Anna University or Anna University shall not take any moral or legal responsibility in any matters related to the company’s legal or regulatory issues that may arise due to non compliance on any matters.
TEC shall present the executive summary to an internal review committee for comments on technical and business feasibility of the idea.
Evaluation Criteria:
Some representative criteria to be applied for evaluation (not limited to these)
1. Strength of the product idea in terms of its technology content, innovation, timeliness and market potential
2. Profile of the core team/ promoters
3. Intellectual Property generated and the potential of the idea for IP creation
4. Financial/ Commercial Viability and 5 year projections of Profit & Loss Account, Balance Sheet and Cash Flows
5. Funds requirement and viability of raising finance
6. Time to market
7. Break-even period
8. Commercial potential, demand and requirement in India
9. Scalability

STAGE 2:
Presentation to Evaluation Committee of TEC, Anna University.
Based on the initial evaluation of the business plan / executive summary, TEC will arrange a meeting at TEC with the company founders, during which the company will be expected to present a presentation describing critical aspects of the business plan to an evaluation committee. The presentation will be followed by questions. After the presentation, a final decision will be made regarding the company's entry into the incubator. The company will be informed of final decision execution of the Minutes of the said Meeting. Such presentation through video conferencing is also permitted.
The constitution of the evaluation committee will be according to the MoU between TEC, Anna University comprising of representatives of TEC - Anna University, Centre for Entrepreneurship Development (CED), Centre for technology Transfer and Development (CTDT) Anna University along with technical, financial and other experts.

Research & Due Diligence:
Throughout the application process, on an as-needed basis, TEC will perform research and due diligence of the company, the management team, the industry, and current and future competitive elements facing the business. SIIC may require further information from the applicant, and may ask the applicant to revise the executive summary and/or presentation.TEC may at its discretion seek advice of various government bodies including the sponsoring agencies like DSIR, DST, TDB, NSTEDB, TIDE, MCIT, MSME, etc.

Non-Disclosure:
TEC - Anna University, Centre for Entrepreneurship Development (CED), Centre for technology Transfer and Development (CTDT) Anna University, adheres to strict confidentiality throughout the application process. However "non-disclosure" agreements will not be executed. The Incubatees are expected to adhere to Rules and Regulations proposed by the Anna University.

III. Institute infrastructure:

TEC may facilitate access to institute infrastructure or Laboratories as per norms of Anna University.
Services: TEC may associate with professionals for accounting, IP, legal and management expertise on a part-time / contract/ consultation basis. Incubate companies can avail of their services. Any direct services provided to incubatee would have to be paid for, by the incubatee to the service provider.
• Common secretarial pool/staff
• Intern Support: Also, to provide support in management, incubates will be assigned an MBA student, if desired.

IV. Mandatory Mentorship:

One of the objectives of Incubation is to utilize the technical expertise and lab infrastructure of Anna University, thus every company that is offered incubation at TEC, has the option to select one faculty from Anna University who shall act as mentor of the Incubate and guide the company on product develop. The incubatee can offer a % of share equity (on mutual agreed basis) or a consultation fee to the mentor as a consideration of mentorship.
Industry Mentor: TEC has created a database of Industry mentors. Every incubate company incubated at TEC may select one Industry mentor within six months from the date of joining incubation centre. In case the incubatee opts for an industry mentor the incubate company can offer a % of share equity (on mutual agreed basis) or a consultation fee to the mentor as a consideration of mentorship.

V. Tenure of Incubation:

Companies will be permitted to stay in the incubator for a period of two years. Maximum two extensions may be granted for 6 months each at a time at the sole discretion of the Institute.
Exit: An Incubate company will leave the incubator under the following circumstances:
• Completion of two year’s stay (if no extension granted)
• Underperformance or non-viability of business proposition as decided by TEC on case to case basis
• Irresolvable promoters‟ disputes as decided by TEC on a case to case basis
• Violation of any Anna University’s policy
• When the company enters in an acquisition, merger or amalgamation deal or reorganization deal resulting in a substantial change in the profile of the company, its promoters, directors, shareholders, products or business plan.
• Change in promoters'/ founders' team without concurrence of TEC.
• Any change of more than 50% of equity ownership would require a prior approval of TEC.
• Any other reason for which TEC may find it necessary for an incubate company to leave.
Notwithstanding anything written elsewhere, TEC's decision in connection with the exit of an incubate company shall be final and shall not be disputed by any incubate company.


VI. Periodic assessment:

The incubate company has to submit an yearly audited statement of profit and loss account and unaudited quarterly statement about the activities. However, incubatee may be asked to provide more frequent updates to TEC.


VII. Intellectual Property:

Promoters should fill an IP declaration worksheet at the time of admission and declare the Intellectual Property developed and owned by the incubate company.
1. TEC shall assist the incubate company if they are desirous of using the Intellectual Property of Anna University like patent, software code, copyright, design registration, developed product, etc. The company can make such request in writing to TEC. The terms and conditions for such IP licensing shall be decided by the Institute as per recommendations of CIPR, CED, CTDT and VC, Anna University. 2. The company shall inform if any students have worked on the technology and if their work will be incorporated in the product(s).
3. The company shall inform if any IP has been generated as a result of collaborative work with faculty members (who are not promoters) and that is being incorporated into the product(s).
4. The company shall inform if any about any agreement with Anna University that the IP has been assigned to the company for commercialization.
6. The incubatee would maintain a register with the details of any IP (patents, licenses, copyrights etc) that has been brought into the company prior or during their stay at TEC. Also, any IP developed during the stay would be maintained in the register.
Notwithstanding anything written above, Intellectual Property Rights will be governed by the Intellectual Property Policy or committee from CIPR, CED and CTDT.


VIII. Seed Funding:

TEC may provide seed loan subject to the availability of funds/ grants/ schemes meant for this purpose. Seed loan will be sanctioned only to the registered companies and shall be based on merits of each company. Further, admission to TEC/ CED shall not automatically entitle the companies to seed loan.
One of the criteria for approval of the seed loan will be the contribution brought in by the promoters to the capital of their companies. Preference will be given to companies who already have some sources of revenue or some customer order booking. Anna University will have sole discretion to sanction or reject an application for seed loan and the decision of Anna University in this regard shall be final. TEC or Anna University is not bound to give any reason in case an application for seed loan is rejected. Though seed loan may be sanctioned at the time of approval of the proposal for admission, disbursement shall be subject to satisfaction of TEC Head that suitable progress has been made.
Notwithstanding anything contrary contained herein the Seed fund sanction and disbursal shall be governed by Seed Fund Guidelines of TEC.
The Incubatees shall contact the Technology Commercialization Officer for further information on guidelines on Seed Funding.

IX. Consideration:
TEC will charge the incubatees for infrastructure and services, seed loan and Anna University’s Intellectual Property. This payment would be in the form of service charges and equity share as per mutually agreed terms. These charges can be converted to Liability free (paid-up) Equity and these equity would be assigned to TEC, Anna University for providing incubation facility, infrastructure services in all cases.
The Equity held by the incubate companies shall be Disposed to TEC, Anna University shall be as per the approval given by the Institute based on recommendations of CIPR, CED, CTDT and VC, Anna University, whose % can be mutually agreed prior to availing the facilities.
Business Plan Template The business plan must cover all the issues listed herein:.
Recommended Subsections in a business plan:
1. Introduction / Company overview
2. Concept / Proposition / Product description
3. Market opportunity
4. Competition survey
5. Development plan and milestones
6. Marketing plan
7. Management / Organizational chart
8. Financials
9. Risks and de-risking strategies


X. Conflicts of interest:

In case of conflict of interests the decision of Institute shall be final and binding upon the parties.


XI. Disclaimer:
Anna University does not guarantee to company incubated about success and/or feasibility and warrantee technology transferred from Anna University. Anna University or TEC or any person representing Anna University or TEC or CTDT or CED or CIPR shall not be liable for any acts or omissions of the incubate company, however, in case of any such event the incubate company shall do all that is required to hold TEC or CTDT or CED or CIPR any person of Anna University representing any one from Anna University from any loss including damage, penalty.
The Incubatee shall obtain at their own cost, the approvals, permissions, licenses or any other regulatory requirements as per the Indian Government regulations and policies laid for that particular Industry or Company. Anna University or any of its departments/ persons representing Anna University cannot be held responsible for any misdeeds, illegalities or irregularities by the Incubatee company. However, if the faculty has formed the company or being one of the Equity holder or having role in management of the company, then the faculty alone is responsible.
In short, only the management board of the Incubatee companies, will be responsible for their own company regulations/ irregularities of their company.


XII. Agreements:

All incubate shall to enter into following agreements with the Institute:
A. Incubation Agreement: Containing rules and other incubation norms, consideration, equity holding, etc. (Applicable to all)
B. Seed-Fund Agreement: Containing rules of disbursement and repayment. (Applicable to incubates availing seed-fund)
C. Technology Commercialization Agreement: Applicable to incubate using technology or IP developed by Anna University.
In such cases the incubate company may request for extension of incubation period. TEC may grant such extension based on the requirements of the incubate.
The Incubate Companies during the period of Incubation at the Centre will mandatorily get their accounts audited and their books of Account are open for Inspection by the empanelled Chartered Accountants of the Centre. Compliances as laid down by the Companies Act 2013 are binding on the Incubate Companies. The companies will give a quarterly report on the compliances adhered as laid down in the Companies Act
Non Compliance of the same would liable to penalty/strict action by the Centre
• Non Adherence to the first warning of the non compliance by the said Incubate Company will attract penalty of Rs. 1000 which will be billed with the facilities due
• An action against the Non Adherence to the second warning by the Incubate Company will make the Company ineligible to apply for Seed fund at the Centre
• An action against the Non Adherence to the third warning in the form of notice to vacate the residential premises allotted to them