Startup India Seed Fund Scheme

In India's Startup ecosystem, capital deficiency is expected during the proof of concept development stage. The funding required by businesses at the proof-of-concept stage frequently makes or breaks a situation for entrepreneurs with solid business concepts.

Several new business concepts fail due to insufficient critical capital required for prototype development, proof of concept, market-entry, product trials, and commercialization at an early stage. Seed capital for such potential firms can have a multiplier impact in terms of validating business concepts and, as a result, creating jobs.

The Startup India Seed Fund Scheme has several advantages

  • The Seed Fund will be distributed to qualifying entrepreneurs through incubators throughout India.
  • The incubators will give physical infrastructure, testing support, prototype or commercialization mentorship, human resources, and legal compliance to the firms once incubated.
  • Financial help of up to Rs 50 lakh would be provided to entrepreneurs at an early stage through incubators under this scheme.

Startup Eligibility Criteria under SISFS

  • A startup that has been approved by the DPIIT and has been incorporated or registered for much less than two years at the time of application.
  • Startups should have a business idea for a possible service or product in terms of commercialization, market fit, and scaling potential.
  • Startups must include technology into their primary service, product, distribution model, business model, or approach to solve the intended problem.
  • Startups working to develop innovative solutions in areas such as waste management, social impact, water management, education, financial inclusion, food processing, agriculture, healthcare, biotechnology, mobility, energy, space, defense, oil and gas, textiles, railways, and other fields are given priority.
  • Seed funding can be obtained through grants and convertible/debt debentures, all of which must comply with the scheme's standards.

Incubator Eligibility Criteria under SISFS

The incubator must be organized as a legal entity, such as one of the following:

  • The Societies Registration Act of 1860 was used to register or incorporate the society.
  • As appropriate, a Private Limited Company formed or registered under the Companies Act, 2013.
  • The Indian Trusts Act of 1882 was used to register or establish the trust.
  • A legislative act establishes the statutory body.

Startups' Application Process

  • Go to the official website for more information.
  • Click the Login button on the homepage's upper right-hand side.
  • The 'Login' tab will appear on the screen. At the bottom of the tab, select the 'Create an Account option.
  • The 'Startup India' website's registration page will appear.
  • Fill in your name, email address, phone number, and password, then click the 'Register' button.
  • The candidates' registered cellphone numbers will receive an OTP. Click the 'Submit' button after entering the OTP.
  • On the homepage's right-hand side, select the 'Apply Now button to get to the official Startup India Seed Fund Scheme website
  • Under the 'For Startups' option, click the 'Apply Now button and log in with the username and password you created on the Startup India website.
  • Here on screen, the application form will appear. Fill out the application form completely, upload your documents, and click the 'Submit' button.

Incubator Application Procedure

  • Visit the official website.
  • Click the Login button on the homepage's upper right-hand side.
  • The 'Login' tab will appear on the screen. At the bottom of the tab, select the 'Create an Account option.
  • The 'Startup India' website's registration page will open
  • Fill in your name, email address, phone number, and password, then click the 'Register' button.
  • The applicant's registered mobile number will receive an OTP. Click the 'Submit' button after entering the OTP.
  • Click the 'Apply Now button on the right-hand side of the homepage to go to the official Startup India Seed Fund Scheme website.
  • Under the 'For Incubators' option, click the 'Apply Now button and log in with the username and password you created on the Startup India website.
  • Choose the country, type the letters in the input box, and select the 'Next' option
  • On the screen, the application form will appear. Fill up the form and save your profile by clicking the 'Save Profile' button.
  • For confirmation, the profile will be emailed to a moderator. Log on to the Startup India Seed Fund Scheme website once your application has been approved.
  • Under the seed money plan, click 'Apply Now.'
  • Fill the application form with basic information, incubator support, information about the incubator team, and information about the fund requirements, among other things.
  • After you have uploaded your papers, click the 'Submit' button.

Documents required

  • Aadhar card.
  • GST certificate
  • Bank account information
  • Lease agreement
  • Detail report of the project
  • Passport size photograph
  • Contact number