Startup India Seed Fund Scheme:- Easy access to cash is a crucial component for entrepreneurs looking to expand their businesses. Lack of funding prevents many potential business concepts from being realized. The Government of India has therefore launched the Startup India Seed Fund Scheme on January 16, 2014, intending to foster business growth and develop an environment that is welcoming to new firms. Read below to get detailed information related to the Startup India Seed Fund Scheme like objectives, incubators, Scheme implementation, features and benefits, implementation, Eligibility Requirements, documents required, the Application process, and much more
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Startup India Seed Fund Scheme 2024
The Government of India introduced the Startup India Seed Fund Scheme on January 16, 2016, to create a strong startup ecosystem and allow entrepreneurs to expand their businesses. Our esteemed Prime Minister Mr. Narendra Modi announced the beginning of this program. Through this program, financial support for entrepreneurs in their early stages would be made available through incubators, up to Rs. 50 lakh.
For the SIFSS initiative, a budgetary allotment of Rs 945 crore has been set aside by the government for this program. This money will be used for market entrance, commercialization, product testing, and proof of concept. The government will give incubators money through this program. Over the next four years, 3600 entrepreneurs will receive assistance from the SIFSS incubators. The Prarambh Startup India International Summit marked the fifth anniversary of the Startup India project.
Credit Guarantee Scheme for Startups
SISFS Scheme Details in Highlights
| Scheme Name | Startup India Seed Fund Scheme |
| Introduced By | Government Of India |
| Launched on | January 16, 2014 |
| Beneficiary | Entrepreneurs |
| Objective | To offer Funds For Startup |
| Financial Assistance | Up To 50 Lakh rupees |
| Year | 2024 |
| Total Number Of Beneficiaries | 3600 |
| Total Budget | Rs 945 Crore |
| Official Website | https://seedfund.startupindia.gov.in/ |
Startup India Seed Fund Scheme Objectives
The Startup India Seed Fund’s major goal is to give entrepreneurs money for their firms so they can expand their businesses. Through this program, business owners are now required to visit banks and other financial institutions to obtain funding for their venture ideas. They only need to apply through this program to receive money from the government. The Startup India seed fund program will provide the necessary early cash at the appropriate moment. for the proper timing of product development, testing, market introduction, etc. This plan will also create a lot of jobs and support startup companies’ business plans.
Who Exactly are the Incubators?
Organizations called incubators work to encourage innovation and entrepreneurship among residents. They essentially give entrepreneurs money and access to their infrastructure so they may conduct business activities like product development, market-entry, commercialization, etc. The government gives incubators incentives, and the incubators then give money to the entrepreneurs. 300 incubators will get grants from the government as part of the Startup India Seed Fund Scheme 2022. Under this program, a firm will receive up to Rs 50 lakh in funding. Through the official website, incubators can submit applications for the Startup India seed fund program. The government would provide them with seed money after reviewing their application. The portal is another place where startups can apply for this program and choose the incubators of their choosing based on their preferences.
Features & Benefits of Startup India Seed Fund Scheme
Some of the key features and benefits of the Startup India Seed Fund Scheme are as follows:
- To create an ecosystem for startups, the Indian government introduced the Startup India Seed Fund Scheme 2022.
- Our esteemed Prime Minister Mr. Narendra Modi announced the establishment of this program.
- On January 16, 2016, this program went into effect to allow entrepreneurs to expand their businesses.
- For this program, the government has set aside a budget of Rs 945 crore.
- Through incubators, this program would offer financial support to entrepreneurs at an early stage of development of up to Rs. 50 lakh.
- This money will not be used for market entrance, product testing, prototype development, commercialization, or proof of concept.
- The government will provide incubators with money, and the incubators will be in charge of giving this money to companies.
- In the next four years, this program will support 3600 businesses through 300 incubators.
Startup India Seed Fund Scheme Implementation
A startup India seed fund plan implementation, execution, and monitoring expert advisory council (EAC) have been established by the department for the promotion of industry and internal trade. The nodal agency for putting this plan into action will be the Department for the Promotion of Industry and Internal Trade. To approve the seed fund, this committee will choose incubators and examine the information submitted by the incubators. Additionally, this group will keep an eye on the incubator’s development. The authority to take all necessary actions to ensure that the funds are used effectively belongs to the expert advisory group. Members of the expert advisory council include the following:
- Chairman
- Additional secretary/joint secretary/director/deputy secretary, DPIIT
- Financial advisor, DPIIT
- Representative of the department of biotechnology
- Representatives of the Indian council of agricultural research
- Representative of the Department of science and technology
- Representative of the ministry of electronics and information technology
- Monitoring Of Startup India Seed F
- At least three members nominated by the secretary
- Representative of NITI aayog
Observation of Program
The startup India seed fund’s relationship with the chosen incubators will be evaluated by the expert advisory group. Under this plan, the incubators are required to submit the report under the expert advisory committee’s instructions for objective evaluation. The expert advisory council has the complete right to stop providing seed fund support if the incubator is not operating up to standards. Legal action will be taken against the incubator if it is found to have used the money for something other than what it intended.
Eligibility Requirements for Startup India Seed Fund Program
For Startup
The eligibility criteria for Startups are as follows:
- The startup must be recognized by DPIIT
- To create a good-fitting product or service with the potential for scaling and sustainable commercialization, the company must have business ideas.
- The startup must have been incorporated no longer than two years before applying.
- The startup should not have received any financial assistance totaling more than Rs. 10 lakh under any Central or Governmental Program.
- According to the Companies Act of 2013 and SEBI Regulation of 2018, the Indian Promoter’s Shareholding in the Startup Must Be 51% or More at the Time of Application to the Incubator for the Scheme.
For Incubators
The eligibility criteria for Startups are as follows:
- The incubator must be a recognized business.
- When applying, the incubator must have been running for two years.
- A government body at the federal or state level must support an incubator.
- The incubator must have at least five businesses that are actively undergoing incubation on the date of application.
- The incubator must have enough seating for at least 25 people.
- The incubator is not eligible if it receives support from a third private entity for the incubatees.
- The incubator should provide a full-time CEO who must have prior experience in business development and entrepreneurship and who will be backed by a strong staff.
- If the incubator does not receive financial support from the federal or state governments, it must have been in operation for at least ten years, have submitted audited annual reports for at least two years, and have at least ten separate startups that are physically being incubated at the time of application.
Documents Required for SISFS Scheme
The documents required while applying For Startup India Seed Fund Scheme are as follows:
- Detail report of the project
- Passport size photograph
- Mobile number Aadhar Card
- GST number
- Bank account details
- Lease agreement
Steps to Apply For Startup India Seed Fund Scheme for Incubators
Applicants need to follow the below-given steps to apply for Startup India Seed Fund Scheme for Incubators
- First of all, visit the official website of the startup India seed fund scheme.
- The home page of the website will open on the screen
- Click on the Apply Now button and the two options will be displayed on the screen i.e.,
- For incubator
- For Startup
- Under the incubator section, click on the Apply Now button
- The login page will open on the screen
- Click on the create an account link
- The registration form will open on the screen
- Now, enter your name, email id, mobile number, and password
- After that enter the captcha code and click on the register button
- Once you will click on the Register button, an OTP will be sent to your registered mobile number
- Enter the OTP in the given space and click on the submit button
- Now, click on the Login button
- Select your country and click on the input letterbox
- After that click on the next option
- The Application form will open on your screen
- Now fill in the form with all the required details like basic information, contact details, point of contact details, success stories, etc
- After that, click on the save profile
- Now your application will be sent to a moderator for approval
- After that, you need to log in again to the portal
- Click on the apply now under the seed fund scheme
- The Application form will open on your screen
- Now, fill in the form with all the required details like general detail, incubator team detail, incubator support detail, fund requirement details, etc
- After that, upload all the required documents
- Finally, click on the submit button
Steps to Apply For Startup India Seed Fund Scheme for Startups
Applicants need to follow the below-given steps to apply for Startup India Seed Fund Scheme for Startups
- First of all, visit the official website of the startup India seed fund scheme i.e., https://seedfund.startupindia.gov.in/
- The home page of the website will open on the screen
- Click on the Apply Now button and the two options will be displayed on the screen i.e.,
- For incubator
- For Startup
- Under Startup Section, click on the Apply Now button
- The application form will open on your screen
- Now, fill in the form with all the required details like your name, email address, mobile number, etc
- After that, upload all the required documents
- Finally, click on the submit button
Steps to Login on the Portal
To login into the portal, applicants need to follow the below-given steps:
- First of all, visit the official website of the startup India seed fund scheme.
- The home page of the website will open on the screen
- Click on the login button
- The login form will open on the screen
- Now, under Incubator/startup, enter your username and password
- Finally, click on the login button to get logged in to your account
Startup India Seed Fund Scheme Selection Procedure
- The Startup India Seed Fund Scheme requires all incubators to form a committee that will be known as the incubator seed management committee. This committee will assess and decide which startup will receive seed funding. The members of this committee are as follows:
- Representatives from the state government startup nodal team
- Nominee of the incubator(chairman)
- Representative of venture capital fund or Angel network
- Domain expert from the academy
- Two successful entrepreneurs
- Domain experts from the industry
- Any other relevant stakeholder
- The members of the incubator seed management committee are chosen by the expert advisory council.
- When choosing the startup, an open, transparent, and fair approach should be used.
- Startups are required to provide information such as their team profile, problem description, product or service summary, business model, etc.
- Startups can seek seed funding in any three incubators of their choosing.
- All startups will be chosen based on eligibility requirements.
- The applicant may reapply if their application is denied.
- Every rejected application will receive an email notifying them of their rejection.
- On the official webpage, applicants can also monitor the status of their application.
- The incubator will choose the business and give the starter money.
- The startup must indicate its preferences on the application form and will be chosen based on those preferences.
- The startups must present their ideas to the incubator’s seed management committee, and the incubator will shortlist candidates based on these presentations.
- The incubator seed management committee will review candidates based on their submission and presentation and choose qualified startups within 45 days of receiving the application.