Startups are a crucial part of a country’s economy, especially in today’s global scenario. Consumer choices and product variety have increased significantly and the demands and needs of consumers are increasing day by day. To facilitate consumer services and accelerate the economic growth of the country, promoting startups is essential.

However, the startups in the country were facing financial issues since asset building requires capital. Banks do not issue loans merely against plans of a business and neither do angel investors invest without seeing an actual foundation of a company. The government of India introduced the Startup India seed fund scheme to solve this issue.

What Is The Startup India Seed Fund Scheme?

The Startup India Seed Fund Scheme (SISFS) is a sub-scheme under the Startup India initiative which aims to provide financial assistance to startups that have just begun their operations or do not have proper assets. This startup govt scheme was launched on April 19, 2021, by the Department of Industry and Internal Trade DPIIT, under the Ministry of Commerce and Industry.

The govt scheme has a huge outlay which shall be used to give financial help to eligible startups. This help shall be extended based on Proof of Concept, prototype development, product trials, market-entry, and commercialisation. This govt scheme will entitle startups to build their foundation and reach a point from where they can attract angel investments.

The financial assistance is provided to beneficiaries through incubators, govt or non-govt recognised.

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What Are The Benefits Of The Startup India Seed Fund Scheme?

The SISFS govt scheme has multiple benefits for its beneficiaries and the nation as a whole. Let us look at these:

• Rolling Applications: The applications for the SISFS scheme are open for the entire year and interested startups can apply anytime in the year. It is not time-barred.

• Sector Agnostic: The scheme accepts applications for startups from every sector irrespective of the activity it is engaged in. Thus, entrepreneurs do not have to worry about their field for seeking assistance under this Sarkari scheme.

• PAN-India: The scheme is applicable all across India and startups from all parts of the country can apply to seek help under this scheme.

• Monetary Benefits: The scheme provides up to Rs. 20 Lakhs for validation of Proof of Concept, prototype development, or product trials and up to Rs. 50 lakhs for market entry, commercialisation, or scaling up through convertible debentures or debt or debt-linked instruments.

• Milestone-Based Payments: The assistance is granted to Startups based on ‘milestones’. After a startup achieves success in one of the activities it needs assistance for, the assistance for the next step shall be provided after that.

What Is The Eligibility Criteria For Startup India Seed Fund Scheme?

The eligibility criteria to avail benefits of the Startup India Seed Fund Scheme has a broad scope and can include multiple businesses/startups under its ambit. Let us have a glance at the eligibility conditions:

• Must be recognised by DPIIT.

• Must not have been incorporated more than 2 years from the date of application.

• Must have a business idea to develop a product or a service with market fit, viable commercialisation, and scope of scaling.

• The startup should not have received more than ₹10 lakhs of financial assistance under any other Central or State Government scheme.

• Shareholding by Indian promoters in the startup should be at least 51% at the time of application to the incubator for the scheme, as per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.

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How To Apply To Avail Benefits Of The Startup India Seed Fund Scheme?

The application procedure to avail benefits of this govt scheme is simple and is given below:

• Make sure you meet the eligibility conditions.

• Visit the official website of Startup India Seed Fund Scheme here.

• Click on the ‘Apply Now’ tab.

• Fill in the requisite details and upload the relevant documents associated with the company.

• Save and submit your form.

• You will receive a confirmation in case you are shortlisted to avail benefits of the scheme.

Conclusion

This scheme is a positive measure for helping Startups realise their complete potential. With the growth of startups, investment and job opportunities will also increase in the country. The government startup scheme is helping entrepreneurs turn their innovative ideas into reality.

For more information or any queries, you can reach out to the scheme authorities by filling out this ‘contact us’ form here.