The Indian government has initiated the Startup India Seed Fund Scheme (SISFS) to facilitate initial funding for innovative startup concepts. Launched in January 2021 by Prime Minister Modi, this scheme is managed by the Department for Promotion of Industry and Internal Trade (DPIIT), which has allocated a Rs 945 crore fund to support startups and benefit 3,600 entrepreneurs through 300 incubators over a span of four years. An Expert Advisory Committee oversees the scheme’s implementation.
The primary objective of the Startup India Seed Fund Scheme is to provide financial assistance to startups in their early stages. This support includes developing prototypes, testing products, entering the market, and commercializing their offerings. The scheme’s aim is to help startups progress to a stage where they can secure funding from angel investors and venture capital firms and overcome challenges in obtaining loans from banks.
To be eligible for this scheme, startups must be recognized by DPIIT and be no older than 2 years at the time of application. They should have a viable business concept with substantial growth potential and employ technology in their product, service, business model, or methodology to effectively address problems. Preference is given to startups in sectors such as social impact, waste management, water management, education, healthcare, and more.
Re-reported from the article originally published in The Krishi Jagran