Department for Promotion of Industry and Internal Trade (DPIIT) has created Startup India Seed Fund Scheme (SISFS) with an outlay of INR 945 Crore to provide financial assistance to startups for Proof of Concept, prototype development, product trials, market entry, and commercialization. It will support an estimated 3,600 entrepreneurs through 300 incubators in the next 4 years.
How much seed funding can a startup receive under the scheme?
Seed Fund to an eligible Startup by the incubator should be disbursed as follows:
1. Upto Rs. 20 Lakhs as a grant for validation of proof of concept, or prototype development, or product trials. The grant shall be disbursed in milestone-based installments. These milestones can be related to the development of prototypes, product testing, building a product ready for the market launch, etc.
2. Upto Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments.
3. A Startup applicant can avail of seed support in the form of grants and debt/convertible debentures each once as per the guidelines of the scheme.
Eligibility criteria of the Scheme:
1. A Startup, recognized by DPIIT, incorporated not more than 2 years ago at that time of application.
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