Bihar Startup Policy 2022: Success Fee Scheme
Under Bihar Startup Policy 2022 by Department of Industries, Government of Bihar
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Quick Answer
Success fee for Bihar-registered startups that secured external funding.
- Funding amount
- Varies
- Funding type
- Subsidy
- Application deadline
- Rolling
- Eligible stage
- Revenue
- Location
- Bihar
- Registrations needed
- DPIIT recognition
About this subsidy
The Bihar Startup Policy 2022, overseen by the Department of Industries, Government of Bihar, introduces the 'Success Fee Scheme' to empower early-stage startups within the state. This comprehensive policy aims to cultivate a thriving entrepreneurial ecosystem, stimulate innovation, and deliver diverse incentives for nascent ventures throughout Bihar, reflecting the government's steadfast commitment to supporting local startups from their foundational stages and positioning the state as a hub for innovation and growth.
This distinctive scheme offers a financial incentive equal to 2% of the total investment a startup successfully mobilizes from external sources. To qualify, these investments must originate from angel investors or recognized institutional investors, specifically those approved by SEBI or RBI. The primary objective of this fee is to alleviate the financial burden associated with securing external capital by defraying various costs incurred during the fundraising process. Securing external investment often comes with significant transactional costs that can strain an early-stage startup's finances. This scheme directly addresses this challenge by reimbursing a portion of these essential expenditures, thereby encouraging startups to pursue external capital without undue financial burden. It acts as a financial reward for successful fundraising, recognizing the effort and resources invested in attracting external capital.
Eligible expenses for which this success fee provides relief include essential legal fees, necessary due-diligence charges, financial advisory fees, valuation charges, and other transaction-related expenditures inherent in investment rounds. By covering a portion of these significant costs, the scheme directly supports the startup's financial health and operational continuity as it achieves critical funding milestones and scales its operations.
This initiative is a core component of the broader Bihar Startup Policy 2022, which collectively endeavors to create a comprehensive and supportive framework for entrepreneurial development across the state. It aims to reduce barriers to capital access and incentivize further investment into the region's startup landscape. The Department of Industries, Government of Bihar, is the nodal agency responsible for industrial development and promoting entrepreneurship in the state. Its mandate includes formulating and implementing policies that attract investment, generate employment, and foster a robust business environment.
Eligibility
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Full eligibility criteria — entity type, stage, sector, founder profile and registration requirements — plus your fit for this program. Sign up to view.
Subsidy providers
The Department of Industries, Government of Bihar is the state department that owns the Bihar Start-up Policy 2022 and the Mukhyamantri Udyami Yojanas. It sits in Vikas Bhawan, part of the New Secretariat in Patna. Start-ups apply for the policy's schemes through the Startup…
Learn moreBenefits & Funding
What You Get
A financial incentive of 2% of external investment secured from approved angel or institutional investors. This defrays fundraising costs including legal, due-diligence, financial advisory, and valuation charges, supporting the startup's financial health during funding milestones.
- Disbursement
- Milestone Based
Timelines & Process
Applications
Rolling basis
Selection Process
Applications submitted online are thoroughly verified by the Department of Industries for compliance with policy guidelines and eligibility. Upon successful verification and approval, the fee is disbursed to the startup's account.
How to apply
Four steps from draft to disbursement — one action each.
- 1
See the questions before you start
Download every question this programme's application form asks, so you can prepare your answers offline before opening the portal.
- 2
Line up your documents
Keep every document from the checklist ready in one folder. Missing docs are the #1 reason applications get bounced.
- 3
Submit on the official portal
Use the official application link and verify all details before final submission.
- 4
Follow up
Reach out 5–7 days after submitting to confirm receipt and ask about the review timeline.
Frequently Asked Questions
What is the Bihar Startup Policy 2022 Success Fee Scheme?
It is a scheme under the Bihar Startup Policy 2022 that provides a success fee equivalent to 2% of the investment mobilized by an early-stage startup from angel or recognized institutional investors.
Which types of investments are eligible for the success fee?
Investments secured from angel investors or institutional investors recognized by SEBI or RBI are eligible under this scheme.
What are the primary eligibility criteria for this scheme?
Startups must be early-stage certified under the Bihar Startup Policy, registered in Bihar, and have secured funding from eligible investors.
What documents are required to apply for the Success Fee Scheme?
Applicants need to submit a signed investment agreement, FIRC or proof of fund receipt, a DPIIT certificate, and their bank details.
How is the success fee disbursed?
The success fee is disbursed post-investment, after the startup has secured and verified the eligible external funding.
Sources
Data on this page is compiled from official program and provider references.
