Startup India Seed Fund Scheme
What is the Startup India Seed Fund Scheme?
Launched in April 2021 by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, the Startup India Seed Fund Scheme (SISFS) aims to support early-stage startups by providing them with financial assistance to turn ideas into successful businesses.
Objectives of SISFS
- Provide seed funding to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
- Help entrepreneurs bridge the gap between innovation and market launch.
- Support innovations in sectors such as technology, manufacturing, education, healthcare, agriculture, energy, and more.
- Encourage job creation and drive economic growth by nurturing startups across India.
Benefits of the Startup India Seed Fund Scheme
- Removes funding barriers for startups in their early days.
- Promotes innovation and risk-taking culture among Indian entrepreneurs.
- Encourages regional startup growth beyond metro cities.
- Strengthens India’s startup ecosystem with structured support.
- Helps create jobs and economic opportunities in various sectors.
Eligibility Criteria for Startups
To apply for the SISFS, a startup must:
- Be recognized by DPIIT.
- Be incorporated not more than 2 years ago at the time of application.
- Have a business idea focused on innovation, development of a product or service with potential for scalability.
- Not have received more than ₹10 lakh in financial support from any other central or state government scheme.
- Have a recommendation letter from an incubator approved under SISFS.
Eligibility Criteria for Incubators
Incubators must:
- Be a legal entity in India (public, private, or academic).
- Have at least 25 startups incubated.
- Be operational for at least 2 years.
- Have adequate infrastructure, such as workspaces, labs, and mentoring facilities.
How to Apply for Startup India Seed Fund Scheme?
Startups can apply online via the official Startup India Seed Fund Scheme Portal. The steps are:
- Register your startup and get DPIIT recognition.
- Log in to the SISFS portal.
- Choose an incubator from the list of approved incubators.
- Submit your application with details about your idea, team, product, and funding requirements.
Funding Details for SISFS
Under the Startup India Seed Fund Scheme:
- A startup can receive up to ₹20 lakh as grant for validation of idea, prototype, or product trials.
- Up to ₹50 lakh can be given as convertible debentures or debt-linked instruments for market entry, commercialization, or scaling up.
- Funds are disbursed by incubators approved under the scheme.
Who Manages the SISF Scheme?
The scheme is implemented through eligible incubators that are selected by DPIIT. These incubators evaluate, shortlist, and disburse funds to startups based on their idea, potential, and readiness.
FAQs on Startup India Seed Fund Scheme
- What is the maximum funding a startup can get under SISFS?
Up to ₹20 lakh as grant and ₹50 lakh as convertible debt.
- Can startups from any sector apply?
Yes, startups from all sectors with innovative ideas are welcome.
- Is it necessary to be part of an incubator?
Yes, you must apply through an approved incubator under SISFS.
- Can an individual apply without registering a startup?
No. Your startup must be DPIIT-recognized to be eligible.
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