Other Considerations:
Access to institute infrastructure (labs, library etc) and faculty expertise would be charged as per the defined MMMUT rules and regulations. Any consultant that is hired directly by the incubatee would have to be paid for directly but it is obligatory to inform the DIIC about the same, which may even interfere in such hiring in exceptional circumstances related to credentials of consultant, availability of facility in University etc..
MMMUT will have a right to put suitable number of Directors (negotiated with the incubatee) on the Board of Company. MMMUT will nominate members on the board of company whose powers and duties would be the same as if he were a nominee director of a financial institution. However, the nominee director shall not stand as a guarantor either to MMMUT or any other party. The said director shall stand indemnified by the company at all times of any liability for any legislation or act for the time being in force.
Equity Disposal by MMMUT: MMMUT would have the first right to sell-off its equity stake in the company. When the incubatee raises funds in any form (Angel Investment, VC fund, acquisition etc) where equity transaction would take place, MMMUT would sell its equity to the buyer.
In case, no such transaction takes place within five years of exit of the company from MMMUT, the promoters would undertake to buy-back the entire equity stake of MMMUT at a price which is highest of the following:
• Book Value of the shares
• Price that will give MMMUT a net return of 12% p.a. compounded annually (for the investments made in seed fund)
• Market Price of the shares as defined by independent valuation
In case the company closes down, MMMUT will initiate due process to recover the investment.
Business Plan Template
The following template shows a possible structure for a comprehensive business plan. The shown sequence is not mandatory; however the business plan must cover all the issues listed in the template.
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. Management / Organizational chart
7. Financials
8. Risks and de-risking strategies
9. Appendix