The flagship initiative of the Indian government, Startup India, intends to promote the startup scene and establish an open, supportive environment for entrepreneurship and innovation in India. Since its launch on January 16, 2016, the Startup India Initiative has announced several programs to support entrepreneurs in building a strong India that could become a nation of job producers rather than job seekers by creating a startup environment. Startup India seed fund scheme (SISFS) is one of these programs. The Startup India team manages this program, which also responds to inquiries from the Department for Industrial Policy and Promotion.

About Startup India Seed Fund Scheme (SISFS)

Entrepreneurs must have quick access to funds in the early phases of an enterprise’s growth. After producing a proof of concept, venture capital firms and angel investors are the only funding sources for startups. Similarly, banks only lend money to applicants who can show evidence of their assets. Early finance is essential for businesses with innovative concepts to conduct proof-of-concept tests. The Startup India Seed Fund Scheme (SISFS) intends to assist entrepreneurs in product testing, market-entry, commercialization, and prototype development. With the help of SISFS, these businesses may develop to the point where they could look for finance from venture capitalists or angel investors or submit a loan application to commercial banks or other financial institutions.

Features of Startup India Seed Fund Scheme (SISFS)

Startup India Seed Fund Scheme (SISFS) provides financial assistance to startups for

·       Proof of concept

·       Prototype development

·       Product trials

·       Market-entry

·       Commercialization

Eligibility Criteria for Startup India Seed Fund Scheme (SISFS):

The eligibility criteria for a startup to apply under the Startup India Seed Fund Programthe scheme shall be as follows:

● A DPIIT-recognized startup that had only been formed two years before the application.

● To create a product or service with the market fit, sustainable commercialization, and scope for scaling, the Startup must have a business idea.

● To create a product or service with market fit, sustainable commercialization, and room for scaling, the company must have a solid business idea.

● To address the issue, the Startup should include technology in its primary product or service, business plan, distribution strategy, or technique.

● Startups creating cutting-edge solutions in industries like underserved populations, trains, oil and gas, textiles, financial inclusion, waste management, water management, biotechnology, healthcare, energy, mobility, defense, and space would be given preference.

● By any other Central or State Government program, Startup should not have had more excellent financial assistance than Rs 10 lakh. This amount does not include free workspace, a monthly founders’ allowance, access to labs, or access to prototype facilities. It also does not include prizes from competitions and significant challenges.

● When a startup applies to the incubator for the program, the SEBI (ICDR) Regulations of 2018 and the Companies Act of 2013 stipulate that Indian promoters must own at least 51% of the company’s shares.

● A startup applicant is only permitted to receive seed money under Startup India seed fund scheme (SISFS) once in each of the program’s three possible forms: grants, debt, and convertible debentures.

Objective of Startup India Seed Fund Scheme (SISFS)

The seed and proof of concept development phases of the Indian startup ecosystem are plagued by insufficient finance.

• Startups with solid business concepts frequently find themselves in a make-or-break situation due to the funding needed at this point.
• Because they lack the early funding necessary for proof of concept, prototype development, product trials, market penetration, and commercialization, many new business plans fail.
• A multiplier impact on the validation of numerous startups’ business concepts and the creation of jobs can result from seed money granted to such promising examples.

Selection of Startups

Each incubator applying for the Startup India Seed Fund Scheme (SISFS) will form the Incubator Seed Management Committee (ISMC), a group of specialists who can assess and choose firms for seed funding. The ISMC would consist of the following members:

• Nominee of Incubator (Chairman)
• Representative from the State Government’s Startup Nodal Team
• representative of an angel network or venture capital fund
• A domain expert from Industry
• A domain expert from academia
• Two Successful Entrepreneurs
• Any other relevant Stakeholder

Requirements to Avail the Benefits

The application may be asked to furnish the following details to get benefit of Startup India seed fund scheme (SISFS)

• Team profile
• Problem statement
• Product/service overview
• Business model
• Customer profile
• Market size
• Quantum of funds needed
• Projected utilization plan for funds

Implementation of Startup India Seed Fund Scheme (SISFS)

The department has established an expert advisory council (EAC) to promote Industry and internal trade to oversee the Startup India seed fund scheme’s establishment, execution, and monitoring. The Department for the Promotion of Industry and Internal Trade will serve as the nodal organization for this strategy. This committee will select the incubators after reviewing the incubators’ applications and approving the seed fund. This group will also monitor the progress of the incubator. The expert advisory group has the authority to take all necessary actions to ensure the funds are used effectively. Members of the specialist advisory council include the following:

• Chairman
• Member of the biotechnology department
• Additional, joint, director, and deputy secretaries, DPIIT
• The Department of Science and Technology’s representative
• Financial advisor, DPIIT
• The Ministry of Electronics and Information Technology’s representative
• Member of the Indian council of agricultural research
• The secretary shall propose at least three members.
• Representative of NITI Aayog

How to Apply for Startup India Seed Fund Scheme (SISFS)

• Visit the Startup India seed fund program’s official website.
• The home page of the site will open in front of you.
• Now click on Apply Now button
• You must then select Apply Now from the Startup section.
• After that, the application form will appear in front of you
• You must complete this application form, including entering your name, email address, phone number, and other details.
• Now upload all the required documents in the given format
• Now click on the submit button
• You can apply to the Startup India seed fund program as a startup by following this approach.

Documents Required to Avail of Benefits

• Aadhar card
• GST number
• Bank account details
• Lease Agreement
• Detailed report of the project
• Passport size photograph
• Mobile number

Also Read:

Govt Jobs Home provides information about self-employment government schemes and latest govt job vacancies notification. Some important points regarding employment are as follows:

• Startup India Scheme for self-employment and generate jobs for others.
• Latest govt job notifications on the daily basis for govt job seekers.