The Startup India Seed Fund Scheme is a remarkable initiative launched by the Hon'ble Prime Minister, Shri Narendra Modi, on 16th January 2021 to support early-stage startups and foster the spirit of entrepreneurship and innovation in the country. This initiative is a part of the larger Startup India initiative that offers even more benefits. This article serves as a comprehensive guide, covering key aspects such as the scheme's objectives, the amount of funding provided, eligibility criteria, and the application process.
What is the Startup India Seed Fund Scheme?
The Startup India Seed Fund Scheme-UPSC is a government initiative to support startups during their initial stages of development, commonly known as the seed stage. It provides financial assistance to startups, enabling them to overcome financial hurdles and bring their innovative ideas to life. The scheme nurtures the startup ecosystem by encouraging entrepreneurship, job creation, and economic growth.
Startup India Seed Fund Scheme Amount
Under the Startup India Seed Fund Scheme, eligible startups receive financial support through seed funding. The amount of funding provided can range from INR 5 lakhs to INR 20 lakhs, depending on the requirements and potential of the startup. This financial assistance is designed to help startups cover expenses related to proof of concept, prototype development, product trials, market-entry, and scaling up operations.
Startup India Seed Fund Scheme Eligibility
To be eligible for the Startup India Seed Fund Scheme, startups must meet specific criteria:
- Must be recognized as an eligible entity under the Startup India initiative.
- Should be less than 2 years old from the date of incorporation
- Must have a business idea with market fit, commercialization potential, and scalability.
- Use technology in their core product, service, business model, or distribution model to address a specific problem.
- Preference is given to startups working on innovative solutions in sectors like social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, railways, oil and gas, textiles, and more.
- Startups should not have received more than Rs 10 lakh of monetary support from any other Central or State Government scheme. Support in the form of prize money from competitions, subsidized working space, founder monthly allowances, access to labs, and prototyping facilities are not considered.
- Indian promoters of the startup must hold at least 51% of the shareholding at the time of application, in accordance with the Companies Act, 2013, and SEBI (ICDR) Regulations, 2018.
- Under the Startup India Seed Fund Scheme, startups can avail seed support in the form of grants and debt/convertible debentures once, based on the guidelines of the scheme.
How to Apply for the Startup India Seed Fund
To apply for the Startup India Seed Fund:
- Go to https://seedfund.startupindia.gov.in/home and create an account. DPIIT-recognized startups can log in using their existing DPIIT credentials.
- Next, complete the application form and select 3 different incubators of your choice. So if incubator 1 rejects you, you will still have a chance with Inbuators 2 and 3.
- Select your preferred financing form. You can select between a grant or debt/convertible debenture. See the form below to decide which option is right for you.
Please, note there are NO application fees. Even if you get selected by an incubator, you shall NOT be charged any fees. If this happens, report the person or an incubator immediately. The application process should ONLY be done via the official website https://seedfund.startupindia.gov.in/home. YOU DO NOT NEED AN AGENT. The application process is online and is simple!