To boost the Startup ecosystem in India, Shri Piyush Goyal, Honourable Cabinet Minister for Railways, Commerce and Industry, Consumer Affairs, Food and Public Distribution launched the Startup India Seed Fund Scheme on 19th April 2021.
The Startup India Seed Fund Scheme is a government initiative to provide financial assistance to early-stage startups in India. The Scheme is operationalized through incubators across India, which in turn invest into early-stage startups
Objective of The Scheme
Startup India Seed Fund Scheme aims to provide financial support to startups to demonstrate concepts prototyping and product testing as well as market entry and commercialization.
Startup India Seed Fund Schem also help early-stage startups to validate their business ideas and develop their products and services. This will enable them to attract further investments from angel investors, venture capitalists, and other financial institutions.
Eligibility Criteria
- A startup, recognized by DPIIT incorporated not more than 2 years ago at time of application
- Startup should be registered as Private Limited Company or LLP
- The startup must have a business idea to develop a product or a service with a market fit, viable commercialization, and scope of scaling
- A startup must not have received more than Rs 10 lakh in funding from any other Central or State Government initiative
- 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 the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018
- 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
Application Process
Step-1: Register on Startup India Portal
The applicant is required to register on the Startup India Portal using an active mobile number and email address. After the registration process is complete, the applicant receives login credentials on his registered email.
Step-2: Get DPIIT Recognition Certificate
Use the login credentials to sign into the Startup India portal. Apply for Startup Recognition by the DPIIT.
Step-3: Apply for Startup India Seed Fund
After you’ve received the DPIIT Recognition Certificate, you’re ready to file the Startup India Seed Fund Application. The same can be done on the Seed Fund Website. Login using your Startup India Account credentials. Access the application, fill in the details online and upload the necessary documents.
Step-4: Evaluation & Shortlisting By Incubators
After the application is submitted on the Startup India Seed Fund website, it will reach your preferred incubators. These incubators will evaluate your application, and if convinced, will shortlist it for further examination.
Step-5: Selection & Shortlisting By ISMC
The shortlisted application will be sent to the Incubator Seed Management Committee or ISMC, constituted individually by each incubator. The ISMC will be the final authority for selecting startups and approving the disbursal of seed funds.
Step-6: Disbursal of Seed Funds to Startups
After selection by the ISMC, a startup becomes eligible for receiving seed funds from the concerned incubator.
Details & Documents Required
- Certificate of Incorporation
- DPIIT Recognition Certificate
- Login Credentials for Startup India Portal
- An Active Mobile Number
- An Active Email Address
- A Selection of Incubators for Application
- CIN & Date of Incorporation
- Business PAN
- Registered Office Address
- Details of Products/Services
- Employee Details
- Fund Deployment Plan
- Incubator Preference
- Video link describing product/business model
- Proof of Authorization (Board Resolution/Authorization Letter/Power of Attorney)
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Note: This Post was last updated on December 4, 2023
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