Startup India Seed Fund Scheme- Instructions

Startup India Seed Fund Scheme- Instructions

The Startup Idrama Seed Pad Scheme (SISPS) is to provide comprehensive support to start-ups for conceptualization, prototype development, product testing, entry into farms, and commercialization. It will enable the start-ups to reach a stage where they can get investment from entrepreneurs such as Ezer investors or through commercial faxes.

Startup India Seed Fund Scheme

You will be able to get loans from different institutions. Active buy-out of this seed sheet will be done through the eligible in-feet to the eligible start-ups.

Need

The first start-up environment is precipitated, and the development of ‘concept worthy’ suffers from the incompetence of zee in the selection. At this stage, the need of the hour creates a situation of fear for the start-ups having good and humane ideas. many innovative commercial considerations

In this critical method requirement of technology for the competence of concept, product development, product testing, entry into farms, and initial selection for commerce gets overshadowed.

Providing seed cards to such unnamed candidates may have a catastrophic effect on the legitimacy of commercial ideas of many start-ups, which will lead to employment generation.

Key points:

About Startup India Seed Fund Scheme (SISFS):

  • Objective: The objective of the scheme is to provide financial assistance for startups for prototype development, proof of concept, product testing, and market entry.
  • This scheme costs Rs 945 crore and was launched by the Department for Promotion of Industry and Internal Trade (DPIIT).

Requirements for eligibility:

  • Only those startups will be recognized by DPIIT which has not exceeded 2 years from the period of application.
  • Financial assistance of not more than 10 lakhs is being received under any scheme of the Central or State Government.

Features:

  • Around 3600 entrepreneurs will be supported over the next 4 years.
  • An Expert Advisory Committee (EAC) constituted by DPIIT will be responsible for the overall execution and monitoring of the scheme.
  • A grant amount up to Rs 5 crore will be provided to the eligible incubators selected by the committee.
  • The selected incubators will be provided a grant of up to Rs 20 lakh for prototype development, proof of concept, and product testing of startups.
  • Startups will be provided an investment of up to Rs 50 lakh for market entry, commercialization or convertible debentures, or debt-related instruments.

Expected benefits:

  • It will help a startup ecosystem in Tier 2 and Tier 3 sectors, as small towns in India are often not provided with adequate funding.

About Startup India Initiative:

  • It was launched in 2016 and envisages creating a strong start-up ecosystem in the country to nurture innovation and provide opportunities to budding entrepreneurs.
  • It focuses on the following three areas:
  • Simplification and handholding.
  • Financing support and incentives.
  • Industry-Academy Partnership and Incubation.

Related Government Initiatives:

  • Startup Innovation Challenge: This is a great opportunity for any startup to leverage their networking and fundraising efforts.
  • National Startup Awards: It is related to recognizing and rewarding outstanding startups and ecosystem enablers who are contributing to economic dynamism through innovation and injecting competition.
  • Ranking of States based on Startup Ecosystem: This is a developed assessment tool aimed at developing States and Union Territories as Startup Ecosystems by extending their full support.
  • SCO Startup Forum: The Shanghai Cooperation Organization (SCO) Startup Forum was launched for the first time in October 2020 to develop and improve the collective ecosystem.
  • Pratham: Pratham the summit aims to provide a platform for global startups and young ideas and innovators together.

Seed funding

  • Seed funding is used in the early stages of an enterprise or business.
  • It helps finance a company in its early stages, including initiatives such as market research and product development.
  • Seed funding can be done by several potential investors which include founders, friends, family, incubators, venture capital companies, etc. Angel investors are one of the most common investors who participate in seed funding.
  • Angel investors invest in risky ventures and get an equity stake in the company in return for the investment.

Department for Promotion of Industry and Internal Trade:

  • For the promotion of industry and internal trade, this department was earlier called the Department of Industrial Policy and Promotion. Its name was changed to DPIIT in January 2019.
  • It operates by the Ministry of Commerce and Industry.
  • In the year 2018, the matter related to e-commerce was transferred to the DPIIT department and in the year 2019, the charge of internal trade, the welfare of traders and their employees, and matters related to startups were also given to the department.
  • DPIIT assists investment in new and upcoming technology, foreign direct investment, and the development of industries. To promote industrial development.
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