Central government is inviting Startup India Seed Fund Scheme 2024 online application / registration form at seedfund.startupindia.gov.in. In this scheme, the Union govt. of India will provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. In this article, we will tell you about the complete process of how to apply online as incubator, startups under SISFS.
In Union Budget 2022, central govt. allocates Rs. 283.5 cr for Startup India Seed Fund Scheme which aims to provide financial assistance to start-ups. This allocation is higher than the Revised Estimate of about Rs. 100 crore. SISFS will provide financial assistance to start-ups for proof of concept, prototype development, product trials, market-entry, and commercialisation.
How to Apply Online for Startup India Seed Fund Scheme
Below is the complete process to apply online as incubator or startups under the Startup India Seed Fund Scheme:-
Incubator Application Form for SISFS
STEP 1: Firstly visit the official website of Startup India Seed Fund Scheme at https://seedfund.startupindia.gov.in/
STEP 2: At the homepage, click at the “Apply Now” tab to open the page of how to apply online for Startup India Seed Fund Scheme:-
STEP 3: If you want to join Seed Fund Scheme as Incubator, then simply select the apply now button.
STEP 4: Then making login using username and password as incubator / startups credentials.
STEP 5: Finally after login, candidates can make login to fill the Incubator Application Form for Startup India Seed Fund Scheme.
Eligibility Criteria for Incubators under Startup India Seed Fund Scheme
- The incubator must be a legal entity:
– A society registered under the Societies Registration Act 1860, or
– A Trust registered under the Indian Trusts Act 1882, or
– A Private Limited company registered under the Companies Act 1956 or the Companies Act 2013, or
– A statutory body created through an Act of the legislature - The incubator should be operational for at least two years on the date of application to the scheme
- The incubator must have facilities to seat at least 25 individuals
- The incubator must have at least 5 startups undergoing incubation physically on the date of application
- The incubator must have a full-time Chief Executive Officer, experienced in business development and entrepreneurship, supported by a capable team responsible for mentoring startups in testing and validating ideas, as well as in finance, legal, and human resources functions
- The incubator should not be disbursing seed fund to incubatees using funding from any third-party private entity
- The incubator must have been assisted by the Central/State Government(s)
- In case the incubator has not been assisted by the Central or State Government(s):
– The incubator must be operational for at least three years
– Must have at least 10 separate startups undergoing incubation in the incubator physically on the date of application
– Must present audited annual reports for the last 2 years - Any additional criteria as may be decided by the Experts Advisory Committee (EAC)
Startup Registration Form for SISFS
The Startup application has opened on 1st July 2021. For more details, please get in touch with us at [email protected]
Eligibility Criteria for Startups under Startup India Seed Fund Scheme
- A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application.
- The startup must have a business idea to develop a product or a service with a market fit, viable commercialization, and scope of scaling.
- The 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 the incubator for the scheme, as per Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
- A startup applicant can avail seed support in the form of grant and debt/convertible debentures each once as per the guidelines of the scheme.
What is Startup India Seed Fund Scheme 2024
Easy availability of capital is essential for entrepreneurs at the early stages of 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 an innovative idea to conduct proof of concept trials.
DPIIT has created Startup India Seed Fund Scheme (SISFS) with an outlay of INR 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.
The Hon’ble Prime Minister of India announced the scheme in his Grand Plenary address of Prarambh: Startup India International Summit on 16th January 2021. After approval of EFC and Hon’ble Finance Minister, the scheme has been notified on 21 January 2021. The Seed Fund will be disbursed to eligible startups through eligible incubators across India.
Need For Startup India Seed Fund Scheme
Easy availability of capital is essential for entrepreneurs at the early stages of 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 an innovative idea to conduct proof of concept trials.
Objective of Startup India Seed Fund Scheme
The Indian startup ecosystem suffers from capital inadequacy in the seed and ‘Proof of Concept’ development stage. Capital required at this stage often presents a make or break situation for startups with good business ideas. Many innovative business ideas fail to take off due to the absence of this critical capital required at an early stage for proof of concept, prototype development, product trials, market entry and commercialization.
Seed Fund offered to such promising cases can have a multiplier effect in validation of business ideas of many startups, leading to employment generation. 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.
Experts Advisory Committee (EAC)
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 comprises of the following members:-
- Shri H.K. Mittal, Chairman
- Shri Shashank Priya, Additional Secretary & Financial Advisor, DPIIT
- Shri Anil Agrawal, Additional Secretary, DPIIT (Convenor)
- Dr. Alka Sharma, Advisor DBT
- Dr. Anita Gupta, Head (NEB), DST
- Shri Jeet Vijayvargiya, CEO, MeitY Startup Hub
- Dr K Srinivas, Pr. Scientist (RSM ICAR-NAARM) & CEO, NAARM TBI a-IDEA
- Shri Saji Gopinath, Professor, IIM Kozhikode
- Smt. Renuka Ramnath, Indian Private Equity and Venture Capital Association
- Smt. Padmaja Ruparel, Co-founder IAN & Founding Partner IAN Fund
- Smt. Anjali Bansal, Founder, Avaana Capital
- Smt. Shruthi Kannan, Head, Cisco Launchpad
- Dr. Apoorva Ranjan Sharma, Co-founder Venture Catalysts & 9 Unicorns
The EAC will evaluate and select incubators for allotment of Seed Funds, monitor progress, and take all necessary measures for efficient utilization of funds towards fulfilment of objectives of Startup India Seed Fund Scheme.
Salient Features of Startup India Seed Fund Scheme
- Year-round ‘Call for Applications’ for Incubators and Startups
- Sector-agnostic
- No mandatory physical incubation
- PAN-India startup programme
- Startups can apply to 3 incubators simultaneously
How Startup India Seed Fund Will Operate
The Seed Fund will be disbursed to eligible startups through eligible incubators across India:-
- Department for Promotion of Industry and Internal Trade (DPIIT) – Nodal Department
- Experts Advisory Committee (EAC) – Government Representatives & Industry Experts
- Govt assisted/Not-Govt assisted Incubators (Incubators)- Operational for atleast 2-3 years
- DPIIT-recognised Startups (Startups) – Incorporated less than 2 years ago
Launch of Startup India Seed Fund Scheme
The Startup India Seed Fund Scheme was launched by Honourable Shri Piyush Goyal on 19th April 2021
Background of Startup India Seed Fund Scheme
The Startup India initiative of the Government of India envisages building a robust Start-up ecosystem in the country for nurturing innovation and providing opportunities to budding entrepreneurs. An Action Plan with 19 action points for the Startup India initiative was unveiled by the Hon’ble Prime Minister on 16 January 2016.
This Action Plan laid down a roadmap for the creation of a conducive ecosystem for Startups in India. Subsequently, many activities have been undertaken to encourage Startups. Startup India Seed Fund Scheme (SISFS) is one such scheme provides financial assistance to early-stage startups.
Check Guidelines of Startup India Seed Fund Scheme at https://dipp.gov.in/sites/default/files/Guidelines-FundScheme-Startup-29January2021.pdf
Gazette Notification – https://www.startupindia.gov.in/content/dam/invest-india/Templates/seedfund-gazette.pdf
Frequently Asked Questions – https://seedfund.startupindia.gov.in/faq
Contact – https://seedfund.startupindia.gov.in/contact
For more details, visit the official website at https://seedfund.startupindia.gov.in/