Startup India Seed Fund Scheme (SISFS)

Startup India Seed Fund Scheme (SISFS)-Introduction

Easy availability of capital is essential for entrepreneurs at the early stages of the growth of an enterprise. Funding from angel investors and venture capital firms becomes available to startups only after the proof of concept has been provided. Similarly, banks provide loans only to asset-backed applicants. It is essential to provide seed funding to startups with innovative ideas to conduct proof of concept trials. There are many business ideas that do not come into existence because of a lack of capital. So in order to curb this situation, the Government of India has launched a Startup India Seed Fund Scheme. Through this scheme, the government is going to provide financial assistance to entrepreneurs.

The DPIIT has created Startup India Seed Fund Scheme (SISFS) with an outlay of ₹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. Through this scheme financial assistance up to ₹50 lakh will provide to the startups at the early stage through incubators.

An Experts Advisory Committee

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.

The EAC will evaluate and select incubators for the allotment of Seed Funds, monitor progress, and take all necessary measures for efficient utilization of funds towards fulfillment of objectives of Startup India Seed Fund Scheme.

Note: Seed Funding Application for the Startup will open on 1st July 2021.