BIRAC - LEAP

Launching Entrepreneurial Driven Affordable Products (LEAP) Fund assists potential biotech startups in piloting and commercializing their products and technologies, enabling them to raise venture capital investments.

The LEAP Fund is implemented through six Fund Partners across the country, with FITT being one of the partners.

Objective

LEAP Fund support acts as a catalyst for raising follow-on private funding, enabling potential startups to pilot and commercialize their products and technologies.

The scheme is designed to help startups attract Angel and Venture Capital investments. It is implemented through selected BioNEST Incubators, which receive grant-in-aid support of ₹5 crore per cycle from BIRAC for deployment in biotech startups.

Guidelines for LEAP Fund

Guidelines for BIRAC Incubator LEAP Fund (Launching Entrepreneurial Driven Affordable Products Fund)

1. Introduction and Scope of the Fund

Bio-incubation helps harness the entrepreneurial potential of startups by providing infrastructure, mentoring, and networking support during their critical early stages.

BIRAC has established more than 60 incubation facilities across strategic locations in India.

While Bioincubators support startups with infrastructure, services, and knowledge, there remains a significant gap in early-stage financial support. The LEAP Fund primarily addresses this need by providing funding through incubators.

BIRAC's existing SEED Fund provides equity-based support of up to ₹30 lakh per startup. The LEAP Fund extends this support by providing investments of up to ₹1 crore per startup. Each BioNEST Bioincubator (LEAP Fund Partner) receives up to ₹5 crore to invest in promising startups through equity or equity-linked instruments, accelerating commercialization and reducing time-to-market.

2. Funding Framework

Under the LEAP Fund, BIRAC provides grant-in-aid assistance to selected BIRAC-supported incubators based on predefined establishment and operational criteria. Each selected incubator may receive up to ₹500 lakh to implement the scheme. Incubators may adopt their own startup selection mechanism, such as accelerator programmes or direct investment, while adhering to the core principles of the initiative.

3. Eligibility Criteria for Bio-Incubators

The BIRAC SEED Fund Committee is expanded to function as the LEAP Fund Committee, comprising experts in investment, startups, and entrepreneurship.

The committee evaluates proposals from eligible incubators based on the following criteria:

• Must be supported under BIRAC's BioNEST programme.
• Must be a BIRAC SEED Fund partner.
• Operational for at least five years with a minimum of five resident biotech, med-tech, or life science startups.
• Must possess in-house capability for incubating and mentoring early-stage biotech startups.
• Should have established IP and Technology Transfer facilitation services.
• Must have at least four years of experience managing early-stage funding programmes or grants.
• Should have prior investment or entrepreneurship development experience.

4. Implementation Guidance

The incubator is responsible for implementing the LEAP Fund in accordance with BIRAC's operational guidelines.

• Grant funds shall be maintained in a separate savings account and utilized within 24 months of signing the implementation agreement.
• Eligible startups must be Indian companies registered under the Companies Act, 2013, with at least 51% Indian shareholding.
• Funding up to ₹1 crore per startup may be released in milestone-based tranches.
• Investments shall be made through equity or equity-linked instruments under a legally binding agreement.
• Potential conflicts of interest must be resolved before funding approval.
• Startups currently receiving SEED funding or whose SEED support is incomplete are not eligible for LEAP funding.
• SEED Fund, LEAP Fund, and AcE Fund are mutually exclusive during the same funding period.
• Startups requiring investment up to ₹30 lakh should generally be considered under the SEED Fund instead of LEAP.
• SEED and LEAP support cannot run concurrently for the same startup.
• Incubators may utilize an existing investment committee or establish a dedicated LEAP Fund Committee.
• A BIRAC nominee shall be an integral member of the LEAP Fund Governance Committee.
• BIRAC reserves the right to inspect incubated companies and request additional information whenever required.
• Incubators are responsible for monitoring milestones, mentoring startups, and reporting investment progress.
• Half-yearly progress reports, utilization certificates, statements of accounts, and project updates must be submitted to BIRAC.
• No management fee is payable. Interest earned up to ₹15 lakh per year may be utilized for administrative expenses, with the remaining interest reported to BIRAC.
• Upon successful exit from a startup investment, 50% of returns remain with the incubator while the remaining 50% must be remitted to BIRAC within 60 days.

5. Review of LEAP Fund Implementation

The BIRAC LEAP Fund Committee reviews half-yearly reports submitted by incubators to assess implementation progress and recommend appropriate financial and operational improvements in consultation with the participating incubators.