Module 2: Fund Management and Finance Operations for Startup Incubators

Speakers: Vikyath and Aarthi (NSRCEL,IIM Bangalore)

 

 

Aarathi Prasad: Aarathi has 12+ years of experience in learning and development. At present she is the program manager at NSRCEL, IIM Bangalore a startup incubator specifically catering to entrepreneurs with profit ventures and social ventures, also student and women entrepreneurs.

 

 

Vikyath Nanjappa: Vikyath is manager of startup incubation centre, NSRCEL, IIM Bangalore. He has been responsible for building the Launchpad and Incubation startup cohort. The programs he heads have aided over 350 entrepreneurs. He has raised money through various organisations to fund startups. He spearheads initiatives in Fintech, Mobility.

About the module: Financial management of an incubator is perhaps the only concern that has to be addressed immediately after figuring out the logistics of setting up an incubator. Addressing the same right away, module two of our course succinctly provides insights to the learners on the fund management such as source of funds, tracking expenses, milestone tracking and financial operations such as bookkeeping, budgeting, internal audits in Incubation centres. It touches upon capacity building, names the types of financial assistance accessible to incubators, captures briefly how incubators help the startup ecosystem grow financially, elaborates upon aspects such as GST directly relevant to funding of incubation centres. The speakers also proactively give references to real life experiences and challenges faced by their organization and shed light upon how they were effectively dealt with. The module culminates with a constructive Q&A session between the speakers and the audience from other incubators directly addressing their queries and discussing their understanding of the financial functioning. This module aims to provide a fundamental understanding on the financial management of an incubator.

 

Course Outcome Checklist

After this module the learner would be able to :

 

  • Understand the need for funds & identify the source of funds
  • Understand milestones and project management
  • Gain insight into Expense tracking, Accounting, Bookkeeping
  • Overall understand the structure of financial management in incubators
  • Decide the financial model their incubator should adapt

 

Video Breakup:

The need for incubator funding and the various ways to get funded – :00-33:33 sec

How to coordinate your incubator’s finance operations – 33:34-1:04:36 sec

 

Attaching herewith a gamut of relevant links for the learner with instructions. It is advised to go through them all as instructed to add up to the module understanding and expand the learning horizon.

 

Quick reads:

 

Success metrics of a successful incubation centre (56:20)

Instruction: Every incubator comes with its own unique individual set of challenges and pros. Make sure to align them and keep the distinctive factors in mind while analyzing success metric through referring to the above material.

 

Goods and Service Tax on Non-profit organizations (21:00 , 26:23)

Instruction: Advisable to go through the entire document to gain precise understanding on the GST.

 

Considerable milestones for Startups to be considered by Incubation centres (52:00)

Instruction: This is an overall compilation. Do refer to above mentioned more vivid explanations of the same. Do not forget to align your own factors with the same.

 

Reading Material:

 

Handbook for budding incubators page 7-10 and 47-49 (37:05)

Instruction: Ideally it is advised to go through the entire handbook. The abovementioned pages though are directly relevant to the module.

 

Incubation support provisions by Government of India for educational institutes

Instruction: Advisable for the learner to document the provisions structurally enabling the outreach process to be swifter

 

Schemes by the government for incubators

Instruction: Go through and document all the schemes clearly in a document along with their provisions, target and eligibility.