Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists, or seek loans from commercial banks or financial institutions.
Seed Fund to an eligible startup by the incubator shall be disbursed as follows:
Up to Rs. 20 Lakhs as grant for validation of Proof of Concept, or prototype development, or product trials. The grant shall be disbursed in milestone based installments. These milestones can be related to development of prototype, product testing, building a product ready for market launch, etc.
Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments
Seed fund shall strictly not be used by startups for creation of any facilities and shall be utilized for the purpose it has been granted for
oil and gas
To provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization
Enabling these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists, or seek loans from commercial banks or financial institutions.
The eligibility criteria for a startup to apply under the Startup India Seed Fund Scheme shall be as follows:
A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application
Startup must have a business idea to develop a product or a service with market fit, viable commercialization, and scope of scaling
Startup should be using technology in its core product or service, or business model, or distribution model, or methodology to solve the problem being targeted
Preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles, etc.
Startup should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme. This does not include prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to prototyping facility
Shareholding by Indian promoters in the startup should be at least 51% at the time of application to incubator for the scheme, as per Companies Act, 2013 and SEBI (ICDR) Regulations, 2018