Entrepreneurs need capital for the growth of their startups. due to a lack of capital, they have to face many failures. The startups that receive support during their early stages are job opportunities. Thus the Government launched a Startup India Seed Fund Scheme. The goal of this scheme is to financially support entrepreneurs for their startups. In this article, you will get complete details about the startup India seed fund scheme.
What is Startup India Seed Fund Scheme?
What is Startup India Seed Fund Scheme?
In 2021, the Government launched Startup India Seed Fund Scheme. It is for four years, starting from 2021-to 22. The goal of this scheme is to support startups during the early stages.
Need of SISFS
When a startup gets capital at an early stage, it can grow. Angel investors, banks, and venture capital firms will invest in a startup if it has proof of concept. The total budget of this scheme is Rs 945. It will support approximately 3,600 entrepreneurs through 300 incubators.
For more details click here: Startup India Seed Fund Scheme amount
Process of SISFS
DPIIT created the Experts Advisory Committee (EAC) to oversee the Scheme. The EAC will select incubators that will get Rs 5 crores each. The incubators will give startups up to Rs 20 lakhs. It is for the proof of concept, prototype development, and product trials for startups. The government will provide up to Rs 50 lakhs to startups for launching, marketing, and growth.
Eligibility Criteria
For startups
- DPIIT should recognize startups. To get recognition click here: https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html.
- Startup founded no more than two years before application.
- The startup must have an idea of developing a product or service which has scaling potential.
- The startup should not receive the support of more than 10 lakhs under any Government scheme.
- This scheme gives preference to startups with innovative solutions. Such as waste and water management, education, agriculture, biotechnology, healthcare, etc.
For incubators
- The incubator must be a legal institution. It can be a society, trust, or a company.
- The incubator should be working for at least two years before applying.
- An incubator must have at least five startups undergoing incubation.
- The incubator must have an experienced Chief Executive Officer and a team.
- Incubators should not provide startups with funding from private companies.
- It should receive government support. If the incubator is not receiving government funding from the government:
– It must be operating for at least three years.
– An incubator must have at least 10 startups undergoing incubation.
– Incubators have to present annual reports for the last 2 years.
How to apply to SISFS?
For startups
The application procedure for startups is as follows:
- Go to the official website of the Startup India Seed Fund Scheme.
- Register and create your account.
- Click on the Apply Now button and select the ‘For Startups’ option.
- You have to log in.
- You have to complete the application, and upload the documents.
- Then submit the form.
For incubators
The application procedure for startups is as follows:
- Go to the official website.
- Register and create your account.
- Click on the ‘Apply Now button and select the ‘For incubators’ option.
- Then you have to log in.
- Select a country and then press the ‘Next’ button.
- Save your profile after completing the application form.
- A moderator will review the profile. After approval login and apply under the seed scheme.
- Enter information such as incubator support, incubator team, fund, and so on.
- Submit the form after uploading the documents.
- You have now applied for the SISFS.
In this article, we covered all the details of the startup India Seed Fund Scheme. ‘Startup India Seed Fund Scheme UPSC’ is an important topic for the IAS Exam. So make sure you learn it thoroughly.
