[Apply] Startup India Seed Fund Scheme 2021 – Incubator / Startup Online Application Form

The Central Government is inviting the Startup India Seed Fund Scheme 2021 on the online application / registration form. In this scheme, the Union Govt. India will provide financial assistance to startups for proof of concept, prototype development, product testing, market penetration and commercialization. In this article, we will tell you about the entire process of applying online as a startup, incubator under SISFS.

How to apply for Startup India seed fund scheme online

The complete procedure to apply online as an incubator or startup under the Startup India Seed Fund Scheme is given below: –

Incubator application form for SISFS

Phase 1: First of all, visit the official website of Startup India Seed Fund Scheme. https://seedfund.startupindia.gov.in/

step 2: On the homepage, click on “apply Now“Tab” to open online application page for Startup India Seed Fund Scheme: –

Apply Online Startup India Seed Fund Scheme
Apply Online Startup India Seed Fund Scheme

step 3: If you want to join the seed fund scheme as an incubator, just select the Apply Now button.

step 4: Then login using the username and password as the incubator / startup credential.

Startup India Seed Fund Scheme Incubator Login
Startup India Seed Fund Scheme Incubator Login

Step 5: Finally after login, candidates can login to fill the incubator application form for Startup India seed fund scheme.

Eligibility Criteria for Incubators under Startup India Seed Fund Scheme

  1. The incubator must be a legal entity:
    – A society registered under the Societies Registration Act 1860, or
    – A trust is registered under the Indian Trust Act 1882, or
    – A private limited company registered under the Companies Act 1956 or the Companies Act 2013, or
    – A statutory body created through an act of the legislature
  2. Incubator must be operational for at least two years on the date of application for the scheme.
  3. The incubator should have a seating capacity of at least 25 people
  4. Incubators must have at least 5 startups at the date of application that are physically undergoing incubation
  5. The incubator should have a full-time chief executive, experienced in business development and entrepreneurship, responsible for being able to test and validate ideas as well as finance, legal and HR functions by a competent team.
  6. Incubators should not distribute seed funds to incubate using funds from any third-party private entity
  7. The incubator should be assisted by the central / state government
  8. If incubator assistance is not taken by the central or state government:
    – Incubator must be operational for at least three years
    – There should be at least 10 different startups physically undergoing incubation in the incubator on the date of application
    – Submission of audited annual report for the last 2 years
  9. Any additional criteria that may be decided by the Expert Advisory Committee (EAC)

Registration Registration Form for SISFS

Startup application will open 1st July 2021. For more information, please contact with us [email protected]

Eligibility Criteria for Startups under Startup India Seed Fund Scheme

  1. A startup, which is accredited by DPIIT, is not included for more than 2 years at the time of application.
    To get DPIIT accreditation, please see https://www.startupindia.gov.in/content/sih/en/startupgov/startup-recognition-page.html
  2. Startups must have a business idea to develop a product or market fit, viable commercialization and a service with scope for scaling.
  3. Startups must use technology in their core product or service, or solve a problem targeting the business model, or distribution model, or methodology.
  4. Priority will be given to creating innovative solutions in areas such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, health, energy, mobility, defense, space, railways, oil and gas. Clothing, etc.
  5. Startups should not receive monetary assistance of more than Rs 10 lakh under any other central or state government scheme. This does not include prize money from competitions and grand challenges, discounted work space, founder’s monthly allowance, access to laboratories or access to a prototype facility.
  6. As per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018, Indian promoters should have at least 51% stake in the startup at the time of application for the incubator for the scheme.
  7. A startup applicant can avail seed support in the form of grants and loans / convertible debentures each time as per the scheme guidelines.

What is Startup India Seed Fund Scheme 2021

Easy availability of capital is essential for entrepreneurs in the early stages of enterprise growth. Funding from angel investors and venture capital firms becomes available to startups only after proof of concept is provided. Similarly, banks only provide loans to asset backed applicants. It is necessary to provide seed funding to startups with an innovative idea to conduct proof of concept tests.

Central Government Schemes 2021 Central Government Scheme HindiPopular Schemes in Central:Pradhan Mantri Awas Yojana 2021PM Housing Scheme (PMAY-G) Pradhan Mantri Awas Yojana

DPIIT has created the Startup India Seed Fund Scheme (SISFS) with an outlay of INR 945 crore to provide startups financial support for proto of concept, prototype development, product trials, market entry and commercialization. It will support an estimated 3,600 entrepreneurs through 300. Incubators over the next 4 years.

The Honorable Prime Minister of India announced the plan in his Grand Plenary address at the inaugural: Startup India International Summit on 16 January 2021. Following the approval of the EFC and the Hon’ble Finance Minister, the scheme has been notified on 21 January 2021. Seed funds will be distributed to eligible startups through eligible incubators across India.

Startup India seed fund scheme required

Easy availability of capital is essential for entrepreneurs in the early stages of enterprise growth. Funding from angel investors and venture capital firms becomes available to startups only after proof of concept is provided. Similarly, banks only provide loans to asset backed applicants. It is necessary to provide seed funding to startups with an innovative idea to conduct proof of concept tests.

Objective of Startup India Seed Fund Scheme

The Indian startup ecosystem suffers from a lack of capital in the seed and the stage-proof of concept ‘development stage. The capital required at this level often presents a make or break situation for startups with good business ideas. Many innovative business ideas fail due to the absence of this significant capital required at an early stage for proof of concept, prototype development, product testing, market penetration and commercialization.

Seed funds offered in such promising cases can have manifold effects in validation of business ideas of many startups, which will lead to employment generation. The Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product testing, market penetration and commercialization. This will enable these start-ups to accept at the undergraduate level, where they will be able to raise investment from angel investors or venture capitalists or take loans from commercial banks or financial institutions.

Expert Advisory Committee (EAC)

An Expert Advisory Committee (EAC) has been formed by the Department of Promotion of Industry and Internal Trade (DPIIT), which will be responsible for overall execution and monitoring of the Startup India Seed Fund Scheme. The EAC consists of the following members: –

  • Mr. H.K. Mittal, president
  • Mr. Shashank Priya, Additional Secretary and Financial Advisor, D.P.I.T.
  • Shri Anil Aggarwal, Additional Secretary, DPIIT (Convenor)
  • Dr. Alka Sharma, Consultant DBT
  • Dr. Anita Gupta, Head (NEB), DST
  • Mr. Jeet Vijayvargiya, CEO, Manti Startup Hub
  • Dr. K. K. Srinivas, Prar. IDEA of Scientist (RSM ICAR-NAARM) and CEO, NAARM TBI
  • Shri Saji Gopinath, Professor, IIM Kozhikode
  • Smt Renuka Ramnath, Indian Private Equity and Venture Capital Association
  • Mrs. Padmaja Ruparel, Co-Founder IAN and Founding Partner IAN Fund
  • Mrs. Anjali Bansal, Founder, Awana Capital
  • Mrs. Shruti Kannan, Head, Cisco Launchpad
  • Dr. Apoorva Ranjan Sharma, Co-Founder Venture Catalyst and 9 Unicorns

The EAC will evaluate and select incubators for allocation of seed funds, monitor progress and take all necessary measures for the efficient use of funds to meet the objectives of the Startup India Seed Fund Scheme.

Salient Features of Startup India Seed Fund Scheme

  1. Year-long ‘Call for Applications’ for incubators and startups
  2. Sector agnostic
  3. No compulsory physical incubation
  4. Pan-India Startup Program
  5. Startups can apply to 3 incubators simultaneously

How Startup India Seed Fund will operate

The seed fund will be distributed to eligible startups through eligible incubators across India: –

  • Department for Promotion of Industry and Internal Trade (DPIIT) – Nodal Department
  • Expert Advisory Committee (EAC) – Government representative and industry expert
  • Government Aided / Not-Government Assisted Incubators (Incubators) – Operating for at least 2-3 years
  • DPIIT-Recognized Startup (Startup) – Incorporated less than 2 years ago

Startup India seed fund scheme launched

Startup India Seed Fund Scheme was launched by Honorable Shri Piyush Goyal on 19 April 2021

Startup India Seed Fund Scheme Background

The Government of India’s Startup India initiative envisages building a strong start-up ecosystem in the country to nurture innovations and provide opportunities to budding entrepreneurs. An action plan with 19 action points was unveiled for the Startup India initiative by the Honorable Prime Minister on 16 January 2016.

This action plan laid the roadmap for building an ecosystem conducive for startups in India. Subsequently, several activities have been launched to encourage startups. The Startup India Seed Fund Scheme (SISFS) is a scheme that provides financial assistance to early level startups.

Check Startup India Seed Fund Scheme Guidelines On https://dipp.gov.in/sites/default/files/Guidelines-FundScheme-Startup-29January2021.pdf

Gazette Notificationhttps://www.startupindia.gov.in/content/dam/invest-india/Templates/seedfund-gazette.pdf

Frequently Asked Questionshttps://seedfund.startupindia.gov.in/faq

Contacthttps://seedfund.startupindia.gov.in/contact

For more information, visit the official website https://seedfund.startupindia.gov.in/.

Leave a Reply

Your email address will not be published. Required fields are marked *