Funding Opportunities in the Biotech Ecosystem -Equity Support to Startups from DBT-BIRAC

The Department of Biotechnology (DBT) and the Biotechnology Industry Research Assistance Council (BIRAC) in India actively support and promote biotech startups through various funding opportunities. BIRAC, established as a not-for-profit Section 8, Schedule B, Public Sector Enterprise by the Government of India's DBT, acts as an Interface Agency. Its main purpose is to strengthen and empower emerging biotech enterprises, enabling them to undertake strategic research and innovation to address nationally relevant product development needs.

The genesis of BIRAC can be traced back to the National Biotechnology Development Strategy (NBDS) released in 2007. The NBDS recognized the imperative need for focused efforts to bridge the gap between biotechnology research and its commercialization. It aimed to create an ecosystem that stimulates innovation, promotes entrepreneurship, and facilitates the translation of biotech research into products and services with significant societal and economic impact.

BIRAC operates through various programs and initiatives that span the entire biotechnology value chain. It provides funding support for early-stage and late-stage research, proof-of-concept studies, product development, and technology transfer. Moreover, BIRAC facilitates collaborations between academia, industry, and other stakeholders, promoting knowledge sharing and capacity building within the biotech sector.

Additionally, as part of its efforts to foster innovation and entrepreneurship in the biotech ecosystem, BIRAC provides equity support to startups. This further strengthens their financial footing and enhances their potential for success. The equity support provided by DBT-BIRAC serves as an additional mechanism to fuel the growth and development of promising biotech startups in India. Here are the equity schemes/funds offered by BIRAC to support biotech startups:

1. SEED FUND (SUSTAINABLE ENTREPRENEURSHIP AND ENTERPRISE DEVELOPMENT):

• Equity exposure: Up to INR 30 lakhs
• Purpose: Capital assistance for post PoC startups with new and meritorious ideas, innovations, and technologies.
• Implementation: Implemented through selected BioNEST Incubators, who receive grant-in-aid support of INR 200 lakhs/cycle.
• Impact: 112 startups supported with equity investment of INR 30 crore. Around 118 products have been commercialized by beneficiary startups.

2. LEAP FUND (LAUNCHING ENTREPRENEURIAL DRIVEN AFFORDABLE PRODUCTS FUND):

• Equity exposure: Variable
• Purpose: Assists potential startups in piloting and commercializing their products and technologies, enabling them to raise venture capital investment.
• Implementation: Implemented through selected BioNEST Incubators, who receive grant-in-aid support of INR 500 lakhs/cycle.
• Impact: 47 startups supported with equity investment of INR 30 crore. Around 46 products have been commercialized by beneficiary startups.

3. BioAngels Program:

• Purpose: Partnership between BIRAC and IAN (Indian Angel Network) to support startups in various sectors, including biotech, medtech, healthtech, pharma, agritech, and cleantech.
• Implementation: Involves interactions with high-quality investors and industry leaders, providing money, mentoring, and market access.

4. ACCELERATING ENTREPRENEURS (AcE) FUND:

• Purpose: Foster R&D and innovation by encouraging VC investment for biotech startups and SMEs through AIFs (Alternative Investment Funds) daughter funds.
• Fund Corpus BIRAC/DBT: INR 150 Cr
• Implementation: Partners with SEBI-registered Category I and II AIFs, which invest in biotech startups and SMEs.
• Impact: INR 733 crore investment in biotech startups, with around 65 startups being supported.

DBT and BIRAC are key players in driving the growth of the biotech ecosystem in India. Their funding opportunities have been instrumental in supporting and nurturing innovation in the field. By providing grants, fellowships, and investments, DBT and BIRAC have helped researchers, startups, and institutions translate their ideas into impactful biotech products and solutions. If you are involved in biotechnology research or entrepreneurial ventures in India, exploring the funding opportunities offered by DBT and BIRAC can be a valuable step towards realizing your goals and contributing to the advancement of the biotech sector in the country.