This is where incubators step in. They act as vital enablers, providing not just workspace and mentorship, but also access to funding, networks and infrastructure that transform early-stage ideas into viable businesses. Yet, according to the report Start-up Ecosystem in TN: Opportunities and Challenges, only about 30 per cent of startups in Tamil Nadu have used incubation services. Interestingly, participation among non-IT startups stands slightly higher at 30 per cent compared to 25 per cent among IT startups. This is understandable as non-IT ventures require physical space, machinery and regulatory support that incubators can provide.
Universities as launchpads
Academic incubators have become a main building block of Tamil Nadu’s startup ecosystem. Nearly 85 per cent of incubated startups are housed in universities, 31 per cent in private universities, 21 per cent in central universities and 14 per cent in state institutions. Among them is the Crescent Innovation and Incubation Council (CIIC), located at the B.S. Abdur Rahman Crescent Institute of Science and Technology, near Chennai. Established in 2018 and registered as a Section 8 company in 2019, CIIC is helmed by Dr Parvez Alam M, whose industry background gives the incubator a practical, business-oriented mindset.
CIIC focuses on sectors like life sciences, Industry 4.0, clean and smart mobility, aerospace and defence. These areas demand access to sophisticated facilities, advanced machinery and testing labs. The incubator operates on what Dr Alam calls the Five M Model – Money, Machinery, Market connections, Mentoring and More value services. The fifth “M” encompasses support functions like intellectual property (IPR) assistance, accounting and laboratory access. “Startups at different stages need different types of help. Some require only mentoring and space, while others need access to funding and machines. We assess each founder’s needs individually and guide them accordingly,” highlights Dr Alam.
The initial important years
The first few years make-or-break most startups. Many founders give up during this phase due to financial or operational pressures. CIIC’s role is to ensure they stay the course by providing the right mix of guidance, tools and resources. The state’s startup report too backs this as 39 per cent of incubated startups are between three and four years old, while 24 per cent are one to two years old, highlighting that incubation is most impactful during these formative years. Dr. Alam also notes an interesting demographic shift. “The average age of successful founders in India is between 35 and 40. These individuals typically have a decade of corporate experience, understand market dynamics and know how business works,” he explains. However, he adds that student-led startups, while increasing in number, often have higher failure rates due to lack of experience. “Students have great energy and creativity, but limited market understanding. Our goal is to ensure they succeed too,” points Dr Alam. To support this, CIIC is strengthening its engagement with student innovators through innovation clubs and mini incubation hubs in nearby towns.
Support through funding and mentors
Funding remains one of the biggest challenges for startups, and incubators often serve as a crucial bridge. CIIC offers a Rs 10 lakh grant for early-stage ideas and helps promising ventures raise up to Rs 1 crore through government programmes, CSR partnerships and investor networks. “We also work with equity or convertible debt where needed,” adds Dr Alam. Equally vital is mentorship and networking. A founder’s main challenge is not the product but the market and at CIIC they help connect with industry mentors and guide them to reach their customers.
CIIC mainly supports startups that build tangible products by providing access to prototyping tools, 3D printing and testing labs. The state report also says that access to infrastructure is the most valued benefit of incubation and received the highest score among founders. Although CIIC is part of a university, it remains open to all innovators. “We call ourselves a poor man’s IIT. Anyone with a good idea can use our incubator. You do not have to be from Crescent,” says Dr Alam with a laugh.
Low awareness and uneven quality
At times, quality of incubators too become an issue. Some just have rooms with no mentors. “If an incubator cannot give full support, it should at least direct start-ups to where they can get it,” he says. At CIIC, quality is ensured through a network of seasoned mentors, domain experts and technical specialists who guide founders across every aspect of growth. He acknowledges that some entrepreneurs hesitate to approach incubators due to concerns about equity dilution, rigid processes, or bureaucratic delays. “We understand these worries. That’s why we don’t take equity too early. We release funds based on milestones and this builds trust,” points Dr Alam. Along with this, faster decision-making in government-linked funding is also necessary to help founders move quickly in a competitive environment.
Beyond funding, CIIC offers value-added services such as legal, accounting and IPR assistance. It also hosts regular meetings with investors and industry leaders to connect founders with real market opportunities.
Expanding beyond the state
CIIC’s vision now extends beyond Tamil Nadu. The incubator is exploring collaborations in the UAE and Saudi Arabia, helping its startups access global markets. Several CIIC-incubated ventures have already begun supplying to industries. Dr Alam is confident that Tamil Nadu’s startups are ready for the world stage. “The state’s ecosystem is still maturing, but it’s evolving in the right direction,” he affirms. The next step for CIIC is to replicate this model across regions so that every aspiring founder has the same opportunity to grow, scale, and succeed.