STARTUP INDIA SEED FUNDING SCHEME
GET UPTO 20 LAKHS GRANT OR 50 LAKHS LOAN TO FUEL UP YOUR STARTUP JOURNERY
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STARTUP INDIA SEED FUNDING SCHEME (SISFS)
The Startup India Seed Fund Scheme (SISFS) is a flagship initiative by the Government of India aimed at addressing the funding gap faced by early-stage startups. It offers vital financial support for activities such as proof of concept, prototype development, product trials, market entry, and commercialization. By empowering startups at these critical early stages, the scheme enables them to build a strong foundation and become investment-ready for angel investors, venture capitalists, or bank financing.
Types of Financial Assistance under SISFS:
Grant Support: Startups can receive up to ₹20 lakh for proof-of-concept validation, prototype development, or product trials. Funds are disbursed in milestone-based installments.
Investment Support: Startups may receive up to ₹50 lakh for activities related to market entry, commercialization, or scaling operations. This support is provided through convertible debentures, debt, or debt-linked instruments.
Benefits
Financial Assistance
Grants of up to ₹20 lakh for proof of concept, prototype development, and product trials.
Investments of up to ₹50 lakh for market entry, commercialization, or scaling, offered through convertible debentures, debt, or debt-linked instruments.
Validation and Refinement
Empowers startups to validate their ideas, refine prototypes, and conduct product trials, ensuring stronger market readiness before approaching larger investors.
Milestone-Based Disbursements
Funding is released in structured installments linked to the achievement of defined milestones, promoting disciplined growth and accountability.
Favorable Investment Terms
Interest rate capped at the prevailing repo rate.
Tenure of up to 60 months, with a possible moratorium of up to 12 months.
No collateral or guarantees required, providing unsecured funding to startups.
Incubation Support
Access to a nationwide network of incubators offering:
Infrastructure: Office space and essential facilities.
Mentorship: Expert guidance in business strategy, marketing, and fundraising.
Networking: Opportunities to connect with investors, customers, and industry experts.
Resources: Access to professional services and vendor partnerships at discounted rates.
Enhanced Visibility and Credibility
Selection under SISFS significantly boosts a startup’s reputation, improving its ability to attract future investments, strategic partnerships, and top talent.
Eligibility Crietria For Section 80 IAC Tax Exemption
Recognition and Age: The startup must be recognized by DPIIT and incorporated within two years prior to the date of application.
Business Idea: The startup should offer a scalable, commercially viable product or service with a strong product-market fit.
Technology Integration: Technology must play a key role in the startup’s core operations, whether in products, services, business models, distribution methods, or problem-solving approaches.
Sector Focus: Preference is given to startups operating in sectors such as:
Social Impact
Waste and Water Management
Financial Inclusion
Education
Agriculture and Food Processing
Biotechnology
Healthcare
Energy
Mobility
Defense
Space
Railways
Oil and Gas
Textiles
Prior Funding Limit: The startup should not have received more than ₹10 lakh in financial support from any other central or state government schemes (excluding prize money, subsidized workspace, fellowships, or lab/prototyping facilities).
Ownership Structure: Indian promoters must collectively hold at least 51% of the equity at the time of application.
One-Time Assistance: A startup can avail seed funding under the SISFS only once.
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