By Nitin Waghela
Copyright republicworld
In 2021, Startup India Seed Fund Scheme came into existence to accelerate financial assistance availability to startups for proof of concept, prototype development, entry into markets at levels. making it easier for entreprenuers to attraact investments from angel investors and venture capatalists.Essentially, what this scheme actualises is disbursing seed funding to select startups via eligible incubators across India.There is a year-round ‘call for applications’ for incubators and startupsThis is sector-agnosticThere is no mandatory physical incubationThis is a PAN-India startup programmeStartups are free to apply to three incubators at the same time.Up to ₹20 lakhs as a grant for validation of proof of Concept, prototype development, or product trials. .Up to ₹50 lakhs of investment given for market entry, commercialisation, or scaling up through convertible debentures or debt or debt-linked instruments.Seed funds are utlised by startups for the creation of any facilities and shall be utilised for the purpose it has been granted for.A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application.Startups must have a business idea to develop a product or a service with a market fit, viable commercialization, and scope of scaling.A startup should be using technology in its core product or service, or business model, or distribution model, or methodology to solve the problem being targeted.Preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, railways, oil and gas, textiles, etc.The startup should not have received more than ₹10 lakhs of monetary support under any other Central or State Government scheme. This does not include prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to a prototyping facility.Shareholding by Indian promoters in the startup should be at least 51 percent at the time of application.Different options: A startup applicant can avail seed support in the form of grants and debt/convertible debentures each once as per the guidelines of the scheme.
