Startup India Seed Fund Scheme 2023 Apply Online, Benefits & Eligibility | Startup India Seed Fund Scheme Online Application PDF Form Download & Guidelines
There are many people who have brilliant business ideas but they are not able to put those ideas into reality because of a lack of finance. So, to solve this problem of lack of funds, the Government of India has taken a new initiative. This new move of the government will help entrepreneurs to grow their businesses. Startup India Seed Fund Scheme was launched on 16 January 2016 to help the entrepreneurs of the country. With the help of this scheme, the funds will be made easily available to entrepreneurs. Our honorable Prime Minister Mr. Narendra Modi made the announcement of the scheme that will prove beneficial in every aspect. The government passed a budget of Rs 945 crore for the scheme. Click to get information related to Credit Guarantee Scheme For Startups
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Startup India Seed Fund Scheme 2023
By keeping in mind, the need for funds in businesses, the government of India implemented the scheme through which financial assistance will be provided to entrepreneurs. According to the scheme, the government will be providing funds to incubators, and after that incubators will allocate funds according to requirements. Under the scheme, incubators will give up to Rs, 50 lakhs to the startups at an early stage. It is expected that 3600 entrepreneurs through 300 incubators will be benefitted from the scheme in the next 4 years.
Startup India Seed Fund Scheme Highlights
| Name Of the Scheme | Startup India Seed Fund Scheme |
| Launched By | Government Of India |
| Beneficiary | Entrepreneurs |
| Objective | To Provide Funds for Startup |
| Official Website | https://seedfund.startupindia.gov.in/ |
| Year | 2023 |
| Financial Assistance | Up To Rs 50 Lakh |
| Total Budget | Rs 945 Crore |
| Number Of Beneficiaries | 3600 |
The objective of the Startup India Seed Fund Scheme
The main objective of Startup India Seed Fund is to provide funds to entrepreneurs for their startups. so that they can develop their enterprises. With this scheme, now entrepreneurs will not need to go to banks and financial institutions to get money for their business idea. He can simply apply through this scheme. And can get money directly from the government. The Startup India Seed Fund scheme will meet the initial capital requirements at the right time. So that product development, testing, market entry etc. can be done at the right time. This scheme will also generate a lot of employment and will validate the business ideas of startups.
Features of Startup India Seed Fund Scheme
- Startup India Seed Fund Scheme was launched on 16 January 2016 by the government of India to support entrepreneurs in the country.
- Under this scheme, the startups will be receiving up to Rs, 50lakhs in starting through incubators.
- The Startup India Seed Fund Scheme (SISFS) will be funding entrepreneurs for market entry, product testing, prototype creation, proof of concept, and commercialization.
Benefits of the Startup India Seed Fund Scheme
- It will provide entrepreneurs with options to expand their businesses.
- The early need for the funds will be fulfilled by this scheme.
- Now, product development, trials, market entry can be done at the right time without any delay.
- The scheme will also help in generating jobs for the people.
Implementation of Startup India Seed Fund Scheme
An expert advisory committee (EAC) made that will see the implementation, execution, and monitoring of the Startup India seed fund scheme. This committee has given the responsibility to verify the details provided by the incubators. The committee will monitor all the work of the incubator. The expert advisory committee makes sure that the funds should be utilized properly.
The members of the expert advisory committee are chairman, representative of the department of biotechnology, additional secretary/joint secretary/director/deputy secretary, DPIIT, representative of the Department of science and technology, financial advisor, DPIIT, representative of the ministry of electronics and information technology, representatives of Indian council of agricultural research, minimum members chosen by the secretary and a Representative of NITI aayog.
Factors Determining the Successful Implementation
- Progress of market launch
- Quantum of loan
- Progress of field trial
- Jobs created by startup
- Progress of product development
- Turnover of startup
- Progress of prototype development
- Progress of proof of concept
Guidelines For Assistance to Incubators
- The expert advisory committee will give funding to the incubators.
- The incubator is only allowed to use the amount only for distributing to start-ups.
- But the incubator can use 5% of the seed fund grant for its management fees.
- The expert Advisory Committee is allowed to take decisions about financial support. The incubator will be receiving the amount of up to Rs 5 crore in 3 or more installments.
- The first installment of a grant will be up to 40% of the total approved amount. The second instalment will be given when the cash in hand goes below 10% of the total commitment. The incubator will get another instalment within 30 days after the submission of proof.
- The incubator must use the amount given by the expert advisory committee within three years from the date of receipt of the first installment.
- If the incubator fails to use half of the grant within 2 years, then he will not be provided with the next installment. The amount which is left utilised must be returned with interest.
- The eligible startup doesn’t have to pay any fees under this scheme.
- The incubator will get the physical infrastructure to maintain regular functioning, support, development, etc.
Selection Procedure of Incubators
All the incubators of the country who are interested can take part in the Startup India Seed Funds Scheme by visiting the official portal. Expert Advisory Committee can make alterations to the guidelines for the selection of incubators. There is no time limit for the Incubators to apply under this scheme. The following points should be kept in mind at the time of selecting the incubator
- Quantum of funds applied
- Deployment plan
- Number of startups that the incubator intends to support
- Mentoring provided in last 3 years (number of mentors hired, average mentoring hour, No of IP)
- Funding support extended in the last 3 years (investment agreement, number of startups, total Corpus, total investment)
- Incubation support in last 3 years (number of startups, success rate, number of startups that cross revenue of 1 crore in 1 year, survival rate of startup)
- Composition of ISMC
- Availability of infrastructure
- Quality of team
- Fulfillment of eligibility criteria
- Other support (industry connects, stakeholder engagement)
Selection Procedure of Startups
- An incubator seed management committee will be made with the aim to evaluate and select a startup for a seed fund.
- The expert advisory committee will select the member of the committee.
- The members of this committee are-:
- Representatives from the state government startup nodal team
- Nominee of the incubator(chairman)
- Representative of venture capital fund or Angel network
- Two successful entrepreneurs
- Domain expert from the academy
- Domain experts from the industry
- Any other relevant stakeholder
- The selectors should follow the fair process while selecting the startup.
- It is necessary for Startups to submit information such as team profiles, problem statements, product overviews, service overviews, business models, etc
- Selection of the startups will be done based on eligibility criteria.
- If any of the application is not accepted then the startups can apply again.
- The start-ups will come to know whether it is selected or not by email.
- With the help of the portal, the application status can be checked.
Eligibility Criteria of Startup India Seed Fund Scheme
For Startups:
- The startup must be recognized by DPIIT.
- At the time of application, the startup should be incorporated not more than two years ago
- The startups should present the business ideas that will prove beneficial in the market.
- As per the companies act, 2013 and SEBI regulation 2018, shareholding by Indian promoters in the startup should be at least 51%,
- The startup should not have taken advantage of any support of rupees 10 lakh or more under any Central or government scheme.
- Priority will be given to startups creating innovative solutions in the following sectors:
- social impact
- Waste management and Water management
- Financial inclusion
- Education and Agriculture
- Food processing and Biotechnology
- Healthcare
- Energy and mobility
- Defense and space
- Railways and Textiles
- Oil and gas
For Incubators:
- The incubator must be a legal entity:
- A society registered under the Societies Registration Act 1860
- A Trust registered under the Indian Trusts Act 1882
- A Private Limited company registered under the Companies Act 1956 of the Companies Act 2013
- A statutory body created through an Act of the legislature
- An incubator should have the support of the central or state government.
- If In case the incubator has not been assisted by the Central or State Government then
- the incubator should be working for minimum of three years.
- Should have minimum 10 separate startups undergoing incubation in the incubator physically on the date of application
- Must present audited annual reports for the last 2 years.
- It is necessary that the incubator should be operational for 2 years at the time of application.
- The incubator should have minimum 5 of startups undergoing incubation physically on the date of application
- the incubator should have a full-time chief executive officer who will be experienced in business development and entrepreneurship.
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Required Documents
- Aadhar card
- GST number
- Bank account details
- Lease agreement
- Detail report of the project
- Passport size photograph
- Mobile number
Procedure To Apply for Startup India Seed Fund Scheme
For Incubators
- Visit the official website of the startup India seed fund scheme.
- The home page will appear on the screen.
- You will see apply the now an option on the home page.
- then click on apply now under for incubator section on the screen.
- Now you must click on create an account option.
- A new page will appear before you
- enter your name, email id, mobile number, and password on the new page.
- then click on the register option.
- You will receive an OTP on your registered ID
- enter this OTP into the space given.
- After that, you must click on submit option.
- Click on the login option.
- Now select your country and click on the input letterbox
- After that click on the next option
- You will see the Application form on the screen.
- Fill out the form by entering details like your basic info, contact info, and point of contact info.
- then click on the save profile option.
- Now your profile will send to a moderator for approval
- After that login again on to the portal
- Now you must click on apply now under the seed fund scheme
- The Application form will be available on the screen.
- Fill out the form by entering all information such as general detail, incubator team detail, incubator support detail, fund requirement details, etc
- then upload all the necessary documents.
- After uploading all documents click on submit option.
- By following these steps, you can apply under the startup India seed funds scheme
For Startups
- Visit the official website of the startup India seed fund scheme.
- The home page will open on the screen.
- Click on apply now under the startup section
- You will see the application form on the screen.
- Fill out the form by entering details such as your name, email address, mobile number, etc
- After entering the details upload all the required documents
- then click on submit option.
- By following these steps, you can apply as a startup under the startup India seed fund scheme
Procedure to Login on The Portal
- Visit the official website of the startup India seed fund scheme.
- The home page will open on the screen.
- then click on the login option on the home page.
- Now select your category which is as follows: –
- Incubator/startup
- DPIIT/EAC
- After selecting, enter your username and password
- then click on the login option.
- By following this procedure, you can log in to the portal
Contact Us
- Visit the official website of the startup India seed fund scheme.
- The home page will open on the screen.
- then click on the Contact option.
- You will be directed to the new page.
- Enter the following details on this new page: –
- Entity type
- Name of the entity
- Name
- Email ID
- Location
- Query type
- Message
- After entering the details click on submit option.
Conclusion–
Startup India Seed Fund Scheme will help entrepreneurs to grow their enterprises. With the help of the scheme, the government wants to encourage the growth of Startups in the country. This initiative of the government will help the companies at the right time they need capital.