Scheme aims to Secure seed funding, Inspire innovation, Support transformative ideas, Facilitate implementation and Start startup revolution
New Delhi: To promote and motivate startups in India, Union Government has launched the Startup India Seed Fund Scheme.
The Fund aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
The Scheme was announced by Prime Minister Narendra Modi on 16th January 2021 in his Grand Plenary address of ‘Prarambh: StartupIndia International Summit’, marking the five-year anniversary of the Startup India initiative.
Rs. 945 Crore corpus will be divided over the next 4 years for providing seed funding to eligible startups through eligible incubators across India.
The scheme is expected to support an estimated 3,600 startups through 300 incubators.
Union Minister Piyush Goyal, while launching the Scheme said “Times are tough, but our resolve is strong, and never before has it become more important for us to empower our startups.”
The Minister said that the scheme will Secure seed funding, Inspire innovation, Support transformative ideas, Facilitate implementation, and Start startup revolution. He said that this Scheme will create a robust startup ecosystem, particularly in Tier 2 and Tier 3 towns of India, which are often deprived of adequate funding.
The online portal created by DPIIT, for the scheme, will allow incubators to apply for funds under it. An Experts Advisory Committee (EAC) has been created by DPIIT to execute and monitor the Startup India Seed Fund Scheme. Grants of upto Rs 5 Crores shall be provided to the eligible incubators selected by the EAC. The selected incubators shall provide grants of up to Rs 20 lakhs for validation of Proof of Concept, or prototype development, or product trials to startups. Furthermore, investments of up to Rs 50 lakhs shall be provided to the startups for market entry, commercialization, or scaling up through convertible debentures or debt-linked instruments.