Seeking Seed Funds For Your Startup? Here's The Perfect Solution!

The startup ecosystem in India is currently flourishing, but it's not without its challenges. One of the biggest obstacles faced by many promising ventures is a lack of crucial capital in the early stages, which can prevent them from getting off the ground and realizing their full potential.

Are you also a startup struggling with a lack of funding at the seed stage, which is preventing your innovative business idea from taking off? Well! don't worry, TICE is here to suggest you the best Seed Fund Scheme from government - Startup India Seed Fund Scheme, which is commonly knows as SISFS or SIS Funds!

The Startup India Seed Fund Scheme offers much-needed seed funding to startups seeking to bring their ideas to fruition. In this article, we'll explore how this scheme can provide the perfect solution to your cash crunch at the initial stage of your startup journey. Let's begin with this perfect startup funding solution!

What Is SISFS?

The Startup India Seed Fund Scheme was launched on 19th April 2021 to spur entrepreneurship across India. SISFS is designed to support startups in their early stages of development, by offering financial assistance for a range of key activities, including proof of concept, prototype development, product trials, market entry, and commercialization.

Key Features Of Startup India Seed Fund Scheme

• Year-round ‘Call for Applications’ for Incubators and Startups
• Sector-agnostic
• No mandatory physical incubation
• PAN-India startup programme
• Startups can apply to 3 incubators simultaneously

Who Is Eligibile For SISFS?

To be eligible to apply for the Startup India Seed Fund Scheme, a startup must meet the following criteria:

• It must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).
• The startup must have been incorporated no more than two years prior to the date of application.
• Preference will be given to startups that are working on innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles, etc.
• The startup should not have received more than Rs. 10 lakh of monetary support under any other Central or State Government scheme.
• The startup's Indian promoters should hold at least 51% of the company's shares at the time of application to the incubator for the scheme.

Documents Required For SISFS

To apply for the Startup India Seed Fund Scheme, a startup must have:

• Certificate of Incorporation
• PAN Card
• Startup Certificate

Application Process For Startup India Seed Fund Scheme

If you're interested in applying for the Startup India Seed Fund Scheme, the process is very simple and can be completed entirely online, without any fees. You won't need to submit any physical copies of your documents either.

You can apply for the scheme at https://seedfund.startupindia.gov.in/

The application form allows you to apply to up to three incubators of your choice, based on your sector, stage, business needs, and strategic goals. The Seed Fund Portal will soon provide details of all the incubators that are part of the scheme.

Selection Process Under Startup India Seed Fund Scheme

Once a startup submits their application to the Startup India Seed Fund Scheme, the incubator they have applied to will establish an Incubator Seed Management Committee (ISMC). This committee will consist of experts who will evaluate and select the startups that will receive seed funding.

The incubator will first shortlist the applications as per the eligibility criteria provided in the guidelines. The ISMC will then evaluate the shortlisted applicants based on their submissions and presentations. They will select the startups that will receive the Seed Fund within 45 days of the evaluation process.

What Happens After Qualifying For SISFS?

After a startup receives the Seed Fund from the Startup India Seed Fund Scheme, they will be required to provide regular updates on their progress and how they are utilizing the funds.

The startup must submit an interim progress update and utilization certificate to initiate the release of the subsequent installment of the grant. At the end of the project duration, the startup must submit a final report and an audited utilization certificate.

In the case of failed ventures, the entrepreneur will be required to share their learnings and the reasons for failure in the report. They must also submit a utilization certificate for the fund amount along with the report.

What Is The Need For Startup India Seed Fund Scheme?

The Indian startup ecosystem is brimming with potential, but unfortunately, many promising ventures fail to take off due to a lack of crucial funding at the seed and ‘Proof of Concept’ development stage. This early-stage capital often presents a make or break situation for startups with good business ideas. Without seed funding, many innovative business ideas fail to materialize and contribute to the growth of the Indian economy.

The Startup India Seed Fund Scheme was introduced to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization. This scheme offers a lifeline to startups in need of seed funding and can have a multiplier effect on the validation of business ideas and the creation of new employment opportunities in the country.

In addition to the Startup India Seed Fund Scheme, the Indian government has set up a States’ Startup Ranking Framework to strengthen the support of states and union territories in building their startup ecosystems.