Seed India Fund
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Documents Required
- DIPP Certificate
- LOA (in Seed fund attached format)
- Finance Statement P&L, Balance Sheet, Cash Flow, Sales Projection
- Basic Startup Details (in Seed fund attached format)
- All Promoters /Directors Aadhar Card
WHT IS SISFS
Introducing the Startup India Seed Fund Scheme (SISFS) by DPllT, with INR 945 Crore allocation, aimed at providing financial aid to startups for various stages including Proof of Concept, prototype development, and market entry.
The scheme aims to support around 3,600 entrepreneurs through 300 incubators over the next 4 years, facilitating their transition to attracting investments from angel investors, venture capitalists, or seeking loans from commercial banks.
OBJECTIVE
The objectives of the Startup India Seed Fund Scheme (SISFS) are to address capital inadequacy in the seed and proof of concept development stage of the Indian startup ecosystem.
It aims to provide critical capital at early stages for proof of concept, prototype development, and market entry, thereby facilitating the validation of innovative business ideas and stimulating employment generation.
BENEFITS
- Easy Availability of Capital
- Catalysing Innovative Ideas
- Early Stage Support
- Up To Rs. 20 Lakhs Grant for validation of POC/ Prototype Development/Product trials.
- Up To Rs. 50 Lakhs of Investment (Convertible debentures, debt, or debt-linked instruments for market entry, commercialization & scaling).
ELIGIBILITY
Eligibility Criteria for SISFS:
- Startup recognized by DPIIT, incorporated within 2 years.
- Business idea with market fit and scalability.
- Utilization of technology in core aspects.
- Preference for innovative solutions in various sectors.
- Not received over Rs 10 lakh support from Govt. schemes.
- Indian promoters hold minimum 51% share.
- Startups can receive either grant or debt/convertible debentures once.
- Funding up to Rs. 20 lakhs as grant for concept validation or prototype development, or up to Rs. 50 lakhs investment for market entry or scaling.
SCOPE OF WORK
For SISFS Application Assistance:
- Formulation ofdocuments.
- Application filing.
- Resubmission if permitted under the Scheme.
- Guidance and negotiation with incubators.
- Monitoring and reporting to incubators.
- Selection of incubation centers on client’s behalf.
- Preparation of Pitch Deck and Financials according to SISFS guidelines.
- Fund utilization breakdown for grants, financial modeling for debt.
- Data room services as required for the application and from incubator side.
FAQs
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A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application is invited to apply for the scheme.
Seed Fund to an eligible startup by the incubator shall be disbursed as tollows:
1. Up to Rs. 20 Lakhs as grant for validation of Proof of Concept, or prototype development, or product trials. The grant shall be disbursed in milestone-based installments.
These milestones can be related to development of prototype, product testing, building a product ready for market launch, etc.
2. Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments.
3. 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.
There is no minimum education qualification required for founders to apply for SISFS.
Seed fund shall strictly not be used by startups for creation of any facilities and shall be utilized for the purpose it has been granted for. A grant can be used for validation of Proof of Concept, or prototype development, or product trials. A debt/ convertible debenture can be used for Market entry, Commercialization, or Scaling up.
The scheme aims to maximize the chances of each startup applicant getting supported through seed funds. It also aims to give startups an opportunity to get supported by a relevant incubator that can give the necessary guidance to them. Thus, we give startups an option to apply to 3 different incubators according to their preference. For example, if incubators at Preference|] and Preference 2 both select a startup, the funding shall be given by Preference1 incubator. If Preference|incubator rejects and Preference 2 incubator selects, the funding shall be given by incubator at Preference 2, and so on.
Can | apply to the Startup India Seed Fund Scheme again after receiving a rejection?
Startups will receive the funds in their company bank accounts.
A startup can choose to not avail the support being offered to them under the scheme. The procedure for the same depends on the stage of the startup in the application process.
1. If the startup has been selected and the seed funding has been approved, they will be required to write a short letter mentioning the reason to pull out of the process. Post the acknowledgment of the letter, they will find a cancel application button on the application tracker tab of their dashboard which will allow them to cancel their application.
2. If the startup has already received any seed fund, it will be required to write a short letter mentioning the reason to pull out of the process. Post acknowledgment of the letter, they will be required to return the fund within 15 days. Post the acknowledgment of refund, they will find a cancel application button on the application tracker tab of their dashboard.
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