Check out Startup India Seed Fund Scheme details – Startup India funding. The government has constituted an expert advisory committee for overall performance and monitoring of the Startup India Seed Fund Scheme. This committee will be chaired by HK Mittal of the Department of Science and Technology. Other representatives of the committee will include members of DPIIT, Department of Biotechnology, Science, and Technology, Electronics and IT, NITI Aayog, and expert members of the startup ecosystem.
The committee will evaluate and select incubators for allocation of funds under the scheme, monitor progress, and take all necessary measures for the efficient use of funds to meet the objectives of the scheme.
Startup India Seed Fund Scheme details (SISFS)
The scheme has been approved for a period of next four years starting from 2021-22 commencing from 1 April 2021.
The government has made a provision of Rs 945 crores for the scheme, which will be split over the next four years to provide seed financing to eligible startups through eligible incubators across India.
Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions. The Seed Fund will be disbursed to eligible startups through eligible incubators across India.
Eligibility Criteria for Startups / Companies
The eligibility criteria for a startup to apply under the Startup India Seed Fund Scheme shall be as follows:
– A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application.
– Startup must have a business idea to develop a product or a service with the market fit, viable commercialization, and scope of scaling.
– 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.
– 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.
– 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.
– Shareholding by Indian promoters in the startup should be at least 51% at the time of application to incubator for the scheme, as per Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
– Any startup will not receive seed support more than once each as per provisions of para 8.1 (i) and 8.1 (ii) respectively.
Selection of Startups for Startup India Seed Fund Scheme
– Each of the incubators applying for the Startup India Seed Fund Scheme will constitute a committee called the Incubator Seed Management Committee (ISMC), consisting of experts who can evaluate and select startups for seed support. The composition of ISMC would be as follows:
1- Nominee of Incubator (Chairman)
2- A representative from State Government’s Startup Nodal Team
3- A representative of a Venture Capital Fund or Angel Network
4- A domain expert from Industry
5- A domain expert from academia
6- Two successful Entrepreneurs
7- Any other relevant Stakeholder
– The final composition and members of ISMC of each incubator shall be approved by EAC and will be a critical parameter in the selection of incubators.
– The process of selection of startups for Seed funding scheme includes submitting an online application including the selection of three incubators as disbursing partners, submitting complete details like the business model, team profile, customer profile, market details, funds requirements, etc.
– Incubators then shortlist applicants and they are called for further submissions and presentations.
– Selected startups can check the status of their application regarding the disbursal of funds in real-time on the startup portal.
Complete information can be found from the official website of Startup India at startupindia(.)gov.in.