It’s very important to arrange funds at the initial stage of any startup. if any entrepreneur needs funds from investors, Capital providing firms, and, banks then he has to provide proof of concept. This is why Startup India seed fund schemes are essential for entrepreneurs to fulfill the requirement of the mention points.
- The proof of concept for any startup
- Prototype development by entrepreneurs
- Essential procurement of Tools & Machinery
- Product trials at the initial stage of startups
- Required market entry funds
- commercialization of product or services
Aim of The ‘Startup India Seed Fund Scheme’
Providing financial support to eligible entrepreneurs for his startup is the primary aim of the ‘Startup India Seed Fund Scheme’. After that, a new Businessman can take the necessary steps to go from early to the graduate stage of a startup which is mentioned in the above list. The startup India program was launched in 2016 by Honorable PriMinister of India Mr. Narendra Modi Ji. This is an extension of startup India to provide support by initial funding. The approved Fund through the Seed Fund scheme will be disbursed to eligible incubators at the PAN India level.
SISFS Most Preferred Sectors
There are no predefine sectors for eligibility but government shares the list of preferred sectors under this scheme as below. If You have very good ideas (Startup Idea) with a proof full execution plan, Then you can also submit your application. ECA members will verify your plan and notify you.
- Sectors that have a Social impact
- Waste Management and Water Management
- Financial Inclusion and Education
- Agriculture and Food processing
- Biotechnology and Healthcare
- Energy, Textiles, and mobility
- Defense, Space, and Railways
- Oil and Gas
Eligibility Criteria for Startups
- The working period a DPIIT recognized startup should be less than 2 years when they apply for ‘Startup India seeds fund schemes’
- Market fit and viable commercialization business idea to develop a product or a service by using Technology are required for application.
- Also, startups have to prove the scope of scaling for the proposed product and services.
- who have already received fund up to 10 lakhs through any government schemes will not eligible for this scheme.
- If any company has more than 49% foreign shareholders, will also not eligible for this scheme.
- This is applicable once for any startup
- There is no educational qualification required to apply for these schemes
Eligibility Criteria for Incubators
- The incubator must be a legal entity under Societies Registration Act 1860, Indian Trusts Act 1882, Companies Act 1956 or 2013.
- The incubator must have completed 2 operational years at the time of application to the scheme.
- Must have 25 people sitting arrangement.
- Incubators must have technical, legal, and managerial staff on their payroll.
- either Incubator is assisted by Central/State Government(s) or operational from last three years.
- last 2 Financial Year Audited Report also required
- Experts Advisory Committee (EAC) can add some additional rules also
|SISFS||Startup India Seed Fund Scheme|
|EAC||Experts Advisory Committee|
|DPIIT||Department for Pramotion of Industry and Internal Trade|
|DBT||Direct Benefit Transfer|
|NEB||National Bureau Of Standards|
|CEO||Chief Exicutive Officer|
|IAN Fund||Indian Angel Network Fund|
|DST||Department of Science and Technology|
Q.1- Who can apply to SISFS?
Answer- A startup and incubator can apply for the Startup India Seed fund Scheme if they have to qualify eligible criteria #Eligibility Criteria for Startups and #Eligibility Criteria for Incubators. you can visit https://seedfund.startupindia.gov.in/about for detailed information.
Q.2- What is the Maximum allowed fund allowed under SISFS?
Answer- Maximum 20 Lakhs for pre Market entrée and maximum 50 Lakhs for the Market entrée.