Startup India Seed Fund Scheme | startupindia.gov.in Portal, Online Registration

Startup India is a flagship initiative of the Government of India. Startup India Scheme was launched by Prime Minister on January 16, 2016. This Scheme aims to create a strong ecosystem conducive to the growth of startup businesses, drive long-term economic growth, and create large-scale job opportunities. Startup India Seed Fund Scheme was launched on the 05th Anniversary of the Startup India Initiative.

Startup India Seed Fund Scheme

What is Startup India Seed Fund Scheme?

The Startup India Seed Fund Scheme SISFS Scheme was announced at the Prarambh: StartupIndia International Summit, which commemorated the Startup India initiative’s fifth anniversary. Through this initiative, the government hopes to empower startups to grow through innovation and design. Since the launch of the initiative, several programs have been implemented to contribute to his vision of transforming India into a country of job creators rather than job seekers.

These initiatives have catalyzed the startup culture. Many startups receive recognition through the Startup India initiative. Also, many entrepreneurs reap the benefits of establishing their own business in India.

A so-called “angel investor” is one of the most common types of investors involved in seed funding.

Angel investors prefer riskier ventures (such as startups with little track record) and expect an equity stake in the company in exchange for their investment.

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Key Points of SISFS Scheme

  • The main objective of this scheme is to assist startups with proof of concept, product trials, prototype development, market entry, and commercialization.
  • With a budget of Rs. 945 crore, it was launched by the Department for Promotion of Industry and Internal Trade (DPIIT).

Eligibility Criteria for startup India Seed Fund Scheme

  • A DPIIT-recognized startup that was founded no more than two years prior to the application.
  • Startups should not have received more than Rs. 10 lakh in financial assistance from any other Central or State Government scheme.
  • The startup must have a business idea in order to develop a product or service with market fit, viable commercialization, and scaling potential.
  • According to the Companies Act of 2013, and the SEBI (ICDR) Regulations of 2018, Indian promoters must own at least 51 percent of the startup at the time of application to the incubator for the scheme.
  • To solve the problem, the startup should use technology in its core product or service, business model, distribution model, or methodology.
  • According to the scheme’s guidelines, a startup applicant can receive seed funding in the form of a grant and debt/convertible debentures only once.
  • Startups developing innovative solutions in areas such as social impact, education, water management, energy, waste management, defense,oil,biotechnology, financial inclusion, textiles,agriculture, food processing, healthcare, mobility, space, railways, gas, and so on would be prioritized.

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Features of Startup India Seed Fund Scheme

  • Over the next four years, it plans to support an estimated 3,600 entrepreneurs through 300 incubators.
  • Grants of up to Rs. 5 crore will be made available to the committee’s chosen eligible incubators.
  • DPIIT will appoint an Experts Advisory Committee (EAC) to oversee the Scheme’s implementation and monitoring.

Need for Startup India Seed Fund Scheme

  • The easy availability of capital is critical for entrepreneurs in the early stages of an enterprise’s growth.
  • Startups can obtain funding from angel investors and venture capital firms only after they have demonstrated a proof of concept. Similarly, banks only make loans to applicants who have assets to back them up.
  • It is critical to provide seed funding to startups with innovative ideas in order for them to conduct proof of concept trials.

SISFS Objective

Startup India Seed Fund Scheme (SISFS) seeks to assist startups with:

  • Proof of concept
  • Product trials
  • Prototype development
  • Market entry and
  • Commercialization.

This would allow these startups to progress to the point where they could seek investments from angel investors or venture capitalists, as well as loans from commercial banks or financial institutions.

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Startup India Seed Fund Scheme Application Process

The website offers two separate application procedures and they are as follows:

  • For Incubators
  • For Start Ups

Application Process For Incubators

SISFS Home
  • Select the Apply Now option option from the main screen.
  • A pop up window will open on the screen.
SISFS Apply Now
  • Now select the For Incubators option.
  • A new login form will open.
  • Enter the Login details or create a new account.
  • Enter the details in the form.
Startup India Seed Fund Scheme
  • Now click on the Register option.
  • After that, cme back to the login form and login.
  • In thios way you can apply for the scheme.

Application Process For Start Ups

  • Go to the official Portal of SISFS. The homepage will appear.
  • Select the Apply Now option option from the main screen.
  • A pop up window will open on the screen.
SISFS Apply Now
  • Now select the For Start Up option.
  • A new login form will open.
  • Enter the Login details or create a new account.
  • Enter the details in the form.
  • Now click on the Register option.
  • After that, cme back to the login form and login.
  • In thios way you can apply for the scheme.

Contact Us

If you have any queries, follow the process mentioned here.

  • Go to the official Portal of SISFS. The homepage will appear.
  • Select the Contact option option from the main screen.
  • A new page will open on the screen.
Contact Us
  • Enter the details in the contact application form.
  • Now click on the submit option.

FAQ’s

What is Startup India Initiative?

It intends to establish a strong startup ecosystem in the country in order to foster innovation and provide opportunities to aspiring entrepreneurs. It was first introduced in 2016.
This initiative’s action plan focuses on the three areas listed below:
Handholding and simplification
Funding Assistance and Incentives
Partnership and incubation between industry and academia

What is the official website of Startup India Seed Fund Scheme?

https://seedfund.startupindia.gov.in/ is the official website of Startup India Seed Fund Scheme.

What are the expected benefits of Startup India Seed Fund Scheme?

It will aid in the development of a robust startup ecosystem in Tier 2 and 3 regions, as smaller towns in India frequently lack adequate funding.

Who will monitor the Startup India Seed Fund Scheme?

The Department for Promotion of Industry and Internal Trade (DPIIT) has formed an Experts Advisory Committee (EAC) to oversee the overall execution and monitoring of the Startup India Seed Fund Scheme.

How much seed funding can a startup receive through the program?

The incubator’s Seed Fund will be distributed to an eligible startup as follows:
Grants of up to Rs. 20 lakhs are available for the validation of Proof of Concept, prototype development, or product trials. The grant will be paid out in installments based on milestones. These milestones can be related to prototype development, product testing, building a product ready for market launch, and so on.
Investment of up to Rs. 50 lakhs for market entry, debt,or debt-linked instruments,commercialization, or scaling up via convertible debentures.
According to the scheme’s guidelines, a startup applicant can receive seed funding in the form of a grant and debt/convertible debentures only once.

Is it possible to apply for the scheme as an individual entrepreneur, or do I need to form a team?

Individual entrepreneurs are not eligible to apply for assistance under the scheme. Only DPIIT-recognized startups are eligible to apply for the SISFS.

Is the program only for startups in certain industries?

SISFS is a sector-agnostic scheme, which means that startups from any industry can apply.
However, startups developing innovative solutions in areas such as social impact, financial inclusion, healthcare, water management, railways, agriculture, space, waste management, education, food processing, biotechnology, energy, mobility, defense, oil and gas, textiles, and so on would be given priority. This list of industries is illustrative and not exhaustive.

Is there a minimum education requirement for founders to apply for SISFS?

There is no minimum educational requirement for founders to apply for SISFS.

Is it possible to get an exemption from any of the eligibility criteria?

There are no exceptions to any of the eligibility requirements. On the date of application submission, all criteria must be met.

What exactly is a DPIIT-accredited startup?

If an entity is incorporated as a Private Limited Company, Registered Partnership Firm, or Limited Liability Partnership, it is considered a “Startup.”
A sole proprietorship or a public limited company are ineligible for startup funding.
If it has been up to ten years since its incorporation/registration
And if its revenue for any of the fiscal years did not exceed INR 100 crore
If it is working to innovate, develop, or improve products, processes, or services, or if it is a scalable business model with a high potential for job creation or wealth creation, it should not have been formed by splitting up or reconstructing an existing business.

Is the SISFS application entirely online?

The application is submitted entirely online, with no physical documents required.

Is there a cost to apply for this scheme?

There are no application fees associated with the scheme. Even if a startup is chosen by an incubator for assistance under this scheme, the startup will not be charged any fees. The incubator or any of its employees shall not charge applicants or beneficiaries under the scheme any fee in cash or in kind for any process of selection, disbursement, incubation, or monitoring.

Can I reapply to the Startup India Seed Fund Scheme after being rejected the first time?

Yes, you can reapply to the SISFS after three months of rejection. This buffer period is provided to ensure that you have addressed the feedback from incubators and are ready to be considered again.

How much time will it take to process my application for SISFS?

Upon receipt of the application, each Incubator will evaluate applicants based on their submissions and presentations and will select startups for Seed Fund within 45 days.

How can I keep track of the progress of my application?

 After submitting a seed fund scheme application, the startup can access a dashboard using their login credentials to check the real-time application status.

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