Startup India Seed Fund Scheme (SISFS)

Summary: The Startup India Seed Fund Scheme (SISFS) is a government initiative designed to provide early-stage financial support to DPIIT-recognized startups for proof of concept, prototype development, product trials, market entry, and commercialization. It addresses the critical funding gap faced by startups before they become eligible for venture capital or bank financing. The scheme is implemented through selected incubators and monitored by an Expert Advisory Committee constituted by DPIIT. Eligible startups must be incorporated within two years, have innovative and scalable business ideas, use technology, and meet specific funding and shareholding conditions. Startups should not have received more than Rs. 10 lakh from other government schemes. The application process involves detailed disclosures on business model, team, funding requirements, and incubator preferences, along with submission of pitch decks and supporting documents. The scheme aims to foster innovation, enable startup growth, and generate employment by supporting viable early-stage ventures.

Financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.

The Hon’ble Prime Minister of India announced the scheme in his Grand Plenary address of Prarambh: Startup India International Summit on 16th January 2021. After approval of EFC and Hon’ble Finance Minister, the scheme has been notified on 21.01.2021.

The Seed Fund will be disbursed to eligible startups through eligible incubators across India.

Objectives of SISFS:

Seed Fund offered to such promising cases can have a multiplier effect in validation of business ideas of many startups, leading to employment generation.

Experts Advisory Committee:

An Experts Advisory Committee (EAC) has been constituted by Department for Promotion of Industry and Internal Trade (DPIIT) , which will be responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme.

The EAC will evaluate and select incubators for allotment of Seed Funds, monitor progress, and take all necessary measures for efficient utilization of funds towards fulfilment of objectives of Startup India Seed Fund Scheme.

Eligibility Criteria

1. A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application.

To get DPIIT-recognized, please visit

https://www.nsws.gov.in/

2. The startup must have a business idea to develop a product or a service with a market fit, viable commercialization, and scope of scaling.

3. The startup should be using technology in its core product or service, or business model, or distribution model, or methodology to solve the problem being targeted.

4. Preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles, etc.

5. Startup should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme. This does not include prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to prototyping facility.

6. Shareholding by Indian promoters in the startup should be at least 51% at the time of application to the incubator for the scheme, as per Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.

7. A startup applicant can avail seed support in the form of grant and debt/convertible debentures each once as per the guidelines of the scheme.

Checklist For Seed Fund Scheme:

Authorised representative :

1. Name of Authorised representative

2. Designation

3. Mobile No.

4. Email ID

5. Board Resolution / Authorisation letter / PoA (as per suggested format)

Entity Details :-

1. Corporate Identification Number

2. Incorporation/Registration Date

3. PAN Number

4. Startup Address

5. Industry & Sector

Startup Details :-

1. Is it a Technology Startup? Yes or No

Startups should be using technology in it’s core product or service or business model or distribution mdel or methodology to solve the problem being targeted.

2. What is the problem you are solving?

• What is your value proposition for this problem?
• Whatis your unique selling point?
• Whatis your target customer segment?
• How do youaim to scale-up?
• What will be the revenue model?

Note: (Describe in maximum 1000 words)

3. Who are your key competitors?

• Startups
• MSMEs
• Corporates
• Other

4. Website URL (optional)?

5. Social Media Link (Facebook/ Linkedin/Twitter/Youtube/Other)

Startup Team :-

1. Name & Background of the CEO along with background

2. LinkedIn Profile

3. Promoter Details-Name of Promoter & Aadhaar Card Number

4. Upload Aadhaar Details

5. No. of full-time employees

6. List of all teams along with the number of full-time employees in each team

i. Team Name

ii. No. of full time employees

Funding Details :-

1. Have you cumulatively received more than Z10 lakhs of monetary support under any Central or State government scheme?

Note: Startup should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme. This does not include prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to prototyping facility.

2. Current Funding Requirement (Quantum of Funds Required in Rs.)

• Grant (It is for Proof of Concept or prototype development or product trials.)
• Convertible Debenture (Convertible Debentures/Debt/Debt-linked Instruments: They are for market entry, commercialization or scaling up)
• Debt

3. Prior Funding Details- Please give details of all the funding details received by the startup across different rounds of funding. If not applicable put NA

4. Funds Deployment Plan with Broad Expense Categories

(Testing and manufacturing, IP costs, Travel, Outsourced services, Consumables/ Contingency/ Manpower/ others with Amount Deployment Start Date & Deployment End Date)

Incubator Preferences :-

Special Note:

Please note that once your application is submitted, you cannot modify your incubator preferences, or the amount and instrument of funding requested. If your application is selected by more than one preferred incubator, it will be allocated to the highest preferred incubator that you selected and cannot be shifted to another incubator.

Before submitting the application, we encourage startups to carefully review our portfolio page at https:/ / seedfund.startupindia.gov.in/ portfolio . This will help applicant startups to make an informed decision about the incubator preferences based on relevant parameters such as sector alignment, available funding balance, city/state, or any other relevant parameters. You may also contact the incubators directly using the contact details provided in the portfolio selection.

1. Incubator Preference # 1

2. Incubator Preference # 2

3. Incubator Preference # 3

(More than 100 incubators option are there)

Final Stage: Upload Documents :-

1. Upload Pitch deck of your Business Idea (as per sample pitch deck; Supported file format – PDF only I Max. size: 15 MB

2. Video URL showcasing your product and/or business model (Optional)

3. Upload any other relevant document which can help us decide better (Optional)

We are in compliance with the provisions of the various Acts, Rules, Regulations, Guidelines, Standards applicable to the entity from time to time. All information provided by us in the application is true, correct and complete and no information material to the subject matter of this form has been suppressed or concealed. If there is any change in this information or compliance status, I will duly inform Startup India within 15 days on dipp-startups@nic.in