Startup India Seed Fund Scheme is a newly released scheme by the government for the growth of Indian startup culture. This scheme is launched to provide funding to the newly established startups and also enhance the idea of common people so that economy of India can increase and soon we accomplish the goal to make India a 5 Trillion Dollar economy. The architecture of this scheme is very innovative.
Brief Description of Project
|Name of Scheme||Startup India Seed Fund Scheme (SISFS)|
|Scheme Benefits||A newly formed startup will get initial funding.|
|Objective||To enhance the entrepreneurship culture in India.|
Table of Contents
- What is Startup India Seed Fund Scheme about?
- What is Seed Funding?
- The objective of the Startup India Seed Fund Scheme
- Why was the scheme SISFS launched?
- Who is eligible?
- Allocation of Funds by the Government of India
- When and Where to apply?
- Funding Incentive Giving Process
- Features of the Scheme
- How to apply?
What is Startup India Seed Fund Scheme about?
Startup India Seed Fund Scheme is the scheme launched in April 2021 by the Indian Government. Anil Agarwal and his team are the reason for launching this scheme. This scheme will create a base for many small business owners and also for those who wanted to start a business. The whole scheme is about providing funding to individuals who want to start any kind of startup and if their startup has potential then they will get the benefit of the scheme.
As we all know that not every startup becomes successful but we also do not forget that failure is a part of Entrepreneurship culture. So this time Indian government analyze the thing deeply rather than seeing startups as an only loss. So this scheme also describes to us the Changement in Indian Government ideology and its involvement toward the business owner & entrepreneurship culture. Major entrepreneurs appreciated this step of the Indian government.
Startup India Seed Fund Scheme 2022 Key Highlights
|Portal||Startup India Seed Fund Scheme (SISFS)|
|Launched by||Mr Narendra Modi|
|Objective||To enhance the entrepreneurship culture.|
|Benefits||No lack of initial funding for new startups.|
|Beneficiary||Adequate funding will be given to small startup owners.|
|Official Website||Click Here|
What is Seed Funding?
The seed means the starting point of all things and funding means providing financial stability to some businesses. So the word itself explains its meaning. Seed funding means providing funding or financial support to newly formed startups or innovating and making into reality the idea youth has in his mind about any startup. Mainly before the scheme, the seed funding is arranged by the startup founder from friends, family, parents or other relatives which everyone doesn’t have.
The objective of the Startup India Seed Fund Scheme
We all know that every scheme comes with proper objectives and criteria just like RMSA comes to improve the quality of secondary education. So SISFS also comes with certain objectives which we describe below.
- One of the main objectives of the Startup India Seed Fund Scheme is to provide funding to the startup at the very initial stage.
- To encourage the entrepreneurship culture in India as many people only want to do the job not to create and that is lousy psychology,
- To enhance and support the idea of youth about any startup.
- Focusing on Tier 2 and Tier 3 cities, which are India’s interiors, is also the primary objective for SISFS as people living in these cities are often deprived of adequate funding and knowledge.
- Promotions of industries and small businesses to a large extent should be done with the help of funding provided by this scheme.
- To support market entry and commercialisation because these two things require a lot of funding for new startups
Why was the scheme SISFS launched?
As we know many got adequate funding from Angel investors and banks also. Then why this scheme is launched? The problems are that Angel investors invest only when they got the proof of the idea of a startup and look at the banks for funding then they only give up to 10 lakhs rupees to an individual under the Pradhan Mantri Mudra Yojana which is not sufficient for the startup. Other are incubators who invest in the company but take some stakes or equity from it and if they don’t take equity then they take monthly fixed fees which are not right and also become very hectic, and tense for the founder or owner of the company.
Getting funding for a newly formed startup is challenging for its founders and also there is no proper support system for them even if they have a great idea that can be converted into billion dollars company.
So to solve all these basic problems and to enhance the startup culture in India our honourable Prime Minister of India Mr Narendra Modi on 16th January 2021 when Startup India completed its five years then he announced this scheme. This scheme especially targets early-age startups to make them grow.
Who is eligible?
Now let’s take a look at who can avail of this scheme. As the scheme launched in July 2021 so as per eligibility your startup must be at least two years old means if you are applying for this scheme on 1ts July 2021 then your startup must be working from 1st July 2019.
Your startup must be in an improvement process and must be DPIIT recognized which means the startup must be either a Private Limited Company, LLP or in a registered partnership. So in short if I can list the eligibility criteria then it should look like the below,
- Within a two-year-old startup,
- Must be in auto-improving process,
- Must DPIIT be recognised?
Allocation of Funds by the Government of India
The government has launched this scheme and allocated a budget of 945 Crores for 4 years to 300 incubators which gives benefits to 3600 entrepreneurs. All reports 61,669 startups are recognised by the Indian Government but out of them, only 3600 will be selected. So only those who are perfectly ready become the most eligible for the scheme and get benefits from it.
When and Where to apply?
Where to Apply?
The Indian Government has created a separate portal for this scheme named as SISFS portal with the official website https://seedfund.startupindia.gov.in/.
When To apply?
If you have just followed all the criteria and understand them deeply, then you can easily apply at any time.
Funding Incentive Giving Process
For 20 Lakh Rupees
If you want to get 20 Lakh rupees under this scheme then you have to make your startup till the prototype development stage. Then the money given to you in certain instalments means the milestone set by the government of India.
For 50 Lakh Rupees
If you want to get 50 Lakh rupees under this scheme then you have shown the government about your scale 5-year plan, market entry orientation and ways of commercialisation.
Features of the Scheme
There are many features of this scheme. Some major features of this scheme are discussed below
Sector Agnostic which means it does not support any specific sector of Startup. It is completely available for any startup sector. But the only thing requires is your startup must have a strong idea and the founder have a good vision.
No Physical Incubation
As the scheme is launched at the PAN India level and the whole process can be done online. There is no need for any physical appearance to apply for the scheme as the scheme is launched during the covid period so its mode is made online.
Can apply 3 incubators at the time
One of the best features that this scheme contains is that it allows startup founders to apply their request to up to 3 incubators at the same time which means it is up to you to which incubator you want to join and which will give you more benefits. So this feature of this scheme reveals to us that the Government want to enhance startup culture and wants to provide seed funding to newly formed startups.
How to apply?
Gneral Instruction and Key Point to remember before filling the form
- The form must be filled in the English language.
- All fields are mandatory unless mentioned as Optional.
- It must be a one-time application and completely free of cost.
- Once the form is submitted, it can’t be modified, so offer it when you are completely ready.
- Applications can be made to 3 incubators simultaneously.
The whole process is online and it is a completely online application on the portal its login criteria are the same as DPIIT recognition so steps are discussed below there are many steps and here each step is discussed,
Go to the website https://seedfund.startupindia.gov.in/ then fill in the details
Step 1. Details of Authorised Representative
- Name of the representative
- Mobile Number
- Email Id
- Board Resolution/ Authorisation letter/ Power of Attorney (uploaded in PDF)
Step 2. Details of Entity
- DPIIT recognition number (Auto Filled)
- Name of Entity (Auto Filled)
- Nature of Entity (Auto-Filled)
- Industry (Select Industry)
- Sector (Select option)
- CIN (Auto Filled)
- Incorporation/ Registration Date
- PAN (Auto Filled)
- Startup Address (Auto Filled)
Step 3. Startup Details
- Is it a technology startup (YES/NO)
- What is the problem you are solving?
- What is your value proposition for this problem?
- What is your unique sselliung pooint?
- What is your target customer segment?
- What is the market size of the opportunity in 1RS?
- How do you aim to scale up?
- What will be the revenue model?
- Who are your key competitors?
- Website URL (optional)
Step 4. Mention each promoter’s details
- Name and the background of CEO (Max 2000 characters)
- Linked Profiles (Optional)
- Name of the Promoter
- Adhar Card Number
- No. of full-time employees
Note: If you have taken money already from any bank more than 10 lakh rupees due to any reason like you don't know aboutt this scheme then my friend you are not eligible for this scheme.
Step 5. Quantum of Funds Required
- Have you received more than 10 Lakh rupees of monetary support under any central or state government scheme?
- Current Funding Requirement
- Prior Funding Details
- Amount in Rs
- Financial Instruments (Grant/Debt/Equity)
- Name of the funding agency
- Funding Agency Type
- Angel Investor
- Funding Department Plan with Broad Expense Category
Step 6. Incubator Preference
You can select out of 50+ shortlist incubators displayed under the portfolio.
- Incubator Preference #1
- Incubator Preference #2
- Incubator Preference #3
Step 7. Last Crucial Step
Under this last step, you have to upload some documents related to your product like you can upload a video of your product.
You can also upload other important documents if you want to describe more about your company or listed product or any services which you are providing under your company.
Extra Details of the SISFS
Thanks to Anil Agarwal for launching Startup India Seed Fund Scheme (SISFS).
The scheme will support prototype development, market-entry, and commercialisation. The good thing associated with this scheme is that it started up very fast. The scheme is just approved by the honourable prime minister of India within 3 months. This scheme will act as a bridge between the startup founders and the Indian Government and I do not doubt that it will become fruitful for our country.
Seven advisory members of the community are present to support this scheme. These seven members are the representatives of Government officials. Now we must make India a Trillion dollar economy.
We have given the complete information regarding Startup India Seed Fund Scheme and described each heading in detail. But if you still found a lack of any information regarding this scheme then please let us know in the comment box. As your legitimate questions can prove beneficial for you as well as for us also. We have tried to provide each one with every detail of the scheme to you, therefore, you don’t need to worry about the information. The whole information is taken from a government website and all facts or notes given here are genuine.
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