Startup India Seed Fund Scheme

Rs. 477.25 crores approved to 133 incubators under the Startup India Seed Fund Scheme (SISFS).

The scheme granted Rs. 477.25 crores to 133 incubators, with Rs. 211.63 crores disbursed as of December 31, 2022.
Startups can seek funding from angel investors or venture capitalists, as well as loans from commercial banks or financial institutions.

About
- It was established by the Department of Industry and Internal Trade (DPIIT).
- It aims to assist entrepreneurs with proof of concept, prototype development, product trials, market-entry, and commercialisation.
- The fund has been allotted Rs. 945 crores over the next four years to provide seed capital to qualifying entrepreneurs.
Eligibility Conditions
- A DPIIT-recognized startup founded no more than two years before the application.
- Startups should not have received more than Rs. 10 lakhs in financial assistance from any other Central or State Government programme.

Over the next four years, it plans to support an estimated 3,600 entrepreneurs through 300 incubators.
DPIIT will appoint an Experts Advisory Committee (EAC) to oversee the Scheme’s implementation and monitoring.
The committee will grant up to Rs. 5 crores to the eligible incubators.
Startups will receive subsidies of up to Rs. 20 lakh from the selected incubators to validate proof of concept, prototype development, or product trials.
Through convertible debentures or debt-linked securities, entrepreneurs will get investments of up to Rs. 50 lakh for market entry, commercialisation, or scaling up.

There are around 41,000 startups in the country, with 44% of these enterprises receiving official recognition.
There are around 5,700 startups in information technology (IT), approximately 3,600 in healthcare, and over 1,700 in agriculture.
These startups are altering the demographics of businesses.
India is currently one of the most powerful nations in the startup ecosystem.
Despite the pandemic-driven disruption, 11 firms became unicorns in 2020, and over 30 are now valued at more than USD 1 billion.

Atmanirbhar Bharat
- Atmanirbhar Bharat App Innovation Challenge is a Digital India initiative.
Make in India
- The campaign promotes indigenously created goods and services.
Start-Up India Programme
- A major project aimed at fostering innovation and start-ups in the country to drive long-term economic growth and provide large-scale job opportunities.
Start-up India Digital Platform
- It is the world’s largest virtual incubator, with over 300,000 registered start-ups and aspiring entrepreneurs.
Start-up Grand Challenge
- It channels the entrepreneurial power of Indian and Korean start-ups to collaborate and create answers to global concerns.
Atal Innovation Mission (AIM)
- It is a flagship programme of NITI Aayog that aims to encourage a culture of innovation and entrepreneurship in India.
National Initiative for Developing and Harnessing Innovations (NIDHI)
- It is a programme that fosters the development of ideas and innovations (both knowledge-based and technology-driven) into successful startups.

Pic Courtesy: IndiaFlings

Content Source: PIB