{"id":47844,"date":"2021-03-22T12:05:00","date_gmt":"2021-03-22T06:35:00","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=47844"},"modified":"2021-03-22T17:33:20","modified_gmt":"2021-03-22T12:03:20","slug":"start-up-india-seed-fund-scheme","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/start-up-india-seed-fund-scheme\/","title":{"rendered":"All about Start-up India Seed Fund Scheme"},"content":{"rendered":"<p class=\"has-drop-cap\">Start -up India Seed Fund Scheme (SISFS) was approved by the Government of India. The scheme aims to offer financial assistance to start-ups for various stages, including proof of concept, product trials, prototype development, <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Market&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;A market is a structured environment, either physical or virtual, where buyers and sellers convene to trade goods and services. This trading hub operates based on the principles of supply and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/market\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>market<\/a> entry &amp; commercialization.<\/p>\n\n\n\n<p>SISFS allows the start-ups to grow and helps in raising the investments through the scheme. The seed fund is disbursed only to eligible start-ups through eligible incubators across India.<\/p>\n\n\n\n<p>In this article, we will discuss the Start-up India Seed Fund Scheme in detail.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is a start-up?<\/h2>\n\n\n\n<p>A start-up is a venture started by entrepreneurs to develop a product or service. The first and primary challenge for a start-up is to have funding to support its ideas of business. To receive funding, the start-up must have a business proposal and the financials to present.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why is funding required?<\/h2>\n\n\n\n<p>The <strong><a href=\"https:\/\/enterslice.com\/startup-services\">start-up<\/a><\/strong> needs funding for all the process to be followed. To get funding from Start-up India Seed Fund Scheme, one must have a detailed business plan and financials.<\/p>\n\n\n\n<p><strong><em>The purpose of needing funds for a start-up is:<\/em><\/strong><\/p>\n\n\n\n<ul><li>Proof of concept<\/li><li>Product development<\/li><li>Team hiring<\/li><li>Products trial<\/li><li>Prototype development<\/li><li>Working capital<\/li><li>Marketing &amp; sales.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is the Start-up India Seed Fund Scheme?<\/h2>\n\n\n\n<p>The Government of India has approved the Start-up India Seed Fund Scheme (SISFS) for the next 4 years, starting from 2021-2022. Its implementation will be from 1<sup>st<\/sup> April 2021.<\/p>\n\n\n\n<p>The scheme aims to offer financial assistance to the start-ups for various stages, including proof of concept, product trials, prototype development, market entry &amp; commercialization.<\/p>\n\n\n\n<p>A total of Rs. 945 Crores will be divided over the next 4 years through eligible incubators across India for seed funding to eligible start-ups. The scheme is expected to support 3600 start-ups approximately.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What are the benefits of start-up India Seed Fund Scheme?<\/h2>\n\n\n\n<p><em><strong>The following are the benefits of start-ups:<\/strong><\/em><\/p>\n\n\n\n<ul><li>Start-ups should be allowed to self-certify their compliance with 6 labour laws and 3 environmental laws via an online process.<\/li><li>For labour laws, no inspection will be carried out for 5 years. It may be inspected only when a written complaint is made, which is credible and verifiable and approved by at least one level senior to the inspecting officer.<\/li><li>For environmental laws, white category start-ups will be able to self certify their compliance.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is the eligibility criterion for start-ups?<\/h2>\n\n\n\n<p><strong><em>The eligibility criteria for start-ups are:<\/em><\/strong><\/p>\n\n\n\n<ul><li>The start-up must be recognized by <strong>DPIIT<\/strong><sup><a href=\"https:\/\/dipp.gov.in\/\"><strong>[1]<\/strong><\/a><\/sup> (Department for Promotion of Industry and Internal Trade), and the age of the company must not be more than 2 years at the time of application.<\/li><li>The start-up should have a business plan to develop a product or service with workable commercialization and scaling.<\/li><li>The start-up must-have technology in its main product or service or business model or methodology to solve the problem.<\/li><li>The start-ups must have innovative solutions or creations in social impact, water management, education, biotechnology, food processing, agriculture, waste management, financial inclusion, railways, oil&amp; gas, defence, etc.<\/li><li>The start-up should not have received more than Rs. 10 Lakhs of the financial support from any other Central or State Government Scheme.<\/li><li>At least 51% of shareholders must be Indian Promoters at the time of application to an incubator for the scheme.<\/li><li>The start-up will receive seed support only once as per the guidelines.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What is the eligibility criterion for Incubators?<\/h2>\n\n\n\n<p>A start-up incubator is a joint program designed to help and support new start-ups. They help entrepreneurs solve a few problems, namely, seed funding, mentoring, training, etc. the sole objective is to help the start-ups grow their business.<\/p>\n\n\n\n<p><strong><em>The eligibility criterion for incubators is:<\/em><\/strong><\/p>\n\n\n\n<ul><li>It must be a legal entity.<\/li><li>It should be functional for at least 2 years on the date of application to the scheme.<\/li><li>The incubator must have a seating capacity of 25 seats at least.<\/li><li>It must have at least 5 start-ups undertaking incubation physically on the date of application.<\/li><li>A Chief Executive Officer (CEO) having experience in business development and entrepreneurship must be in an incubator.<\/li><li>No seed funding using any private third-party entity is disbursed.<\/li><li>The Central or State Government should have assisted the incubator.<\/li><li>Where the Central or State Government does not assist the incubator, it must be functional for at least 3 years. It must have at least 10 start-ups undergoing incubation physically on the date of application. Also, 2 years of audited report must be presented.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Expert Advisory Committee (EAC)<\/h2>\n\n\n\n<p>DPIIT will constitute an expert advisory committee (EAC) which will be responsible for monitoring and overall execution of the Start-up India Seed Fund Scheme. EAC will assess &amp; select the incubators for the <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Allotment&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;An allotment is the systematic distribution of business resources, often pertaining to the distribution of shares during initial public offerings (IPOs) to underwriting firms or to new and(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/allotment\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>allotment<\/a> of Seed Funds, monitor its progress, and take all the necessary measures for effective utilization of funds to fulfil the Start-up Scheme object.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Selection of Start-up India Seed Fund Scheme<\/h2>\n\n\n\n<p>Each incubators applying for the Start-up Scheme will constitute a committee ISMC (Incubator Seed Management Committee) consisting of experts to evaluate &amp; select start-ups for seed funding. EAC will approve the composition of each ISMC. The selection of start-ups will be through an open, fair and transparent process.<\/p>\n\n\n\n<p>ISMC shall select the start-ups based on their application &amp; presentation within 45 days of receipt of application. The applicants will be able to track their progress on the Startup India Portal on a real-time <a class=\"glossaryLink\"  aria-describedby=\"tt\"  data-cmtooltip=\"&lt;div class=glossaryItemTitle&gt;Basis&lt;\/div&gt;&lt;div class=glossaryItemBody&gt;In finance, the &amp;quot;basis&amp;quot; is a term with several applications, including representing the difference between the spot price and the future contract price of an asset, which is vital in investment(...)&lt;\/div&gt;\"  href=\"https:\/\/enterslice.com\/learning\/terms\/basis\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'>basis<\/a>. If an applicant is rejected, he may apply fresh.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>A start-up is a venture started by entrepreneurs to develop a product or service. The first and primary challenge for a start-up is to have funding to support its ideas of business.<\/p>\n\n\n\n<p>The Government approved start-up India Seed Fund Scheme (SISFS) of India. It aims to offer financial assistance to the start-ups for various stages, including proof of concept, product trials, prototype development, market entry &amp; commercialization. This allows the start-ups to grow and helps in raising the investments through the scheme. Until now, the government has identified 41,061 start-ups in India.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/registration-of-startup-in-india-a-step-by-step-guide\/\">Registration of Startup in India: A step by step Guide<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Start -up India Seed Fund Scheme (SISFS) was approved by the Government of India. The scheme aims to offer financial assistance to start-ups for various stages, including proof of concept, product trials, prototype development, market entry &amp; commercialization. SISFS allows the start-ups to grow and helps in raising the investments through the scheme. The seed [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":47845,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[3819],"acf":{"service_id":"250"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Everything know about Start-up India Seed Fund Scheme - Enterslice<\/title>\n<meta name=\"description\" content=\"Start-up India Seed Fund Scheme (SISFS) aims to offer financial assistance to start-ups for various stages, product trials, market entry &amp; Commercialization.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/start-up-india-seed-fund-scheme\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Everything know about Start-up India Seed Fund Scheme - Enterslice\" \/>\n<meta property=\"og:description\" content=\"Start-up India Seed Fund Scheme (SISFS) aims to offer financial assistance to start-ups for various stages, product trials, market entry &amp; Commercialization.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/start-up-india-seed-fund-scheme\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2021-03-22T06:35:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-03-22T12:03:20+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2021\/03\/All-about-Start-up-India-Seed-Fund-Scheme.png\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Navdisha Sehgal","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2021\/03\/Navdisha.jpeg","authorDescription":"Completed BA LLB from JEMTEC, School of Law, Greater Noida (Affiliated to GGSIP University, New Delhi). I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.","postViews":439,"readingTime":4,"nextPost":{"id":47863,"slug":"non-disclosure-of-dues-payable-to-msmes-in-financial-statements"},"prevPost":{"id":47832,"slug":"sebi-rolls-out-the-legal-entity-template"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2021\/03\/All-about-Start-up-India-Seed-Fund-Scheme.png","postTerms":"Startup","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/47844"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=47844"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/47844\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/47845"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=47844"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=47844"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=47844"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}