Rs. 375.25 crore approved to 102 incubators under Startup India Seed Fund. Total amount of Rs. 81.45 crore approved to 378 startups. (As on date 30 July 2022)
- Startup India Seed Fund Scheme (SISFS) provides financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization
- It was launched in 2021
- It is under the Ministry of commerce and industry- DPIIT
What funds will be given to the startups?
Seed Fund to an eligible startup by the incubator shall be disbursed as follows:
- Up to Rs. 20 Lakhs as grant for validation of Proof of Concept, or prototype development, or product trials. The grant shall be disbursed in milestone-based installments.
- Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments
- A startup applicant can avail seed support in the form of grant and debt/convertible debentures each once as per the guidelines of the scheme.
What is a Startup?
A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application is invited to apply for the scheme.
No, individual entrepreneurs are not eligible to apply for support under the scheme.
Which sectors can avail to this scheme?
Startups from any sector can apply for the scheme. However, preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, railways, oil and gas, textiles, etc. This list of sectors is indicative and not exhaustive.
What is the criteria of being a Startup?
An entity shall be considered a “Startup” –
- If it’s incorporated as either Private Limited Company or Registered Partnership Firm or Limited Liability Partnership. A sole proprietorship or a public limited company is not eligible as startup
- If it is up to 10 years from the date of its incorporation/ registration
- If its turnover for any of the financial years has not exceeded INR 100 crore
- If it is working towards innovation, development or improvement of products or processes or services, or if it is a scalable business model with a high potential of employment generation or wealth creation
- Should not have been formed by splitting up or reconstruction of a business already in existence.
What is the outlay of the scheme?
DPIIT has created Startup India Seed Fund Scheme (SISFS) with an outlay of INR 945 Crore to provide financial assistance to startups for Proof of Concept, prototype development, product trials, market entry, and commercialization. It will support an estimated 3,600 entrepreneurs through 300 incubators in the next 4 years.
What is the purpose of Experts Advisory Committee (EAC)?
An Experts Advisory Committee (EAC) has been constituted by Department for Promotion of Industry and Internal Trade (DPIIT) , which will be responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme.
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