Startup India Seed Fund Scheme (SISFS)

Every budding entrepreneur goes through the problem of funding in the early stages and has to face a lack of finance. Solid business ideas need good funding and that is why you need to know about Startup India Seed Fund Scheme (SISFS).  This blog will highlight the benefit of the scheme seed funding and its benefits for entrepreneurs.

Every entrepreneur needs to understand what constitutes Startup India Seed Fund Scheme (SISFS) and why it is essential for building businesses.

Introduction to the Startup India Seed Fund Scheme (SISFS)

Startups play an active role in stimulating innovation and employment creation in India. Their growth is directly proportional to the growth of the Indian economy. According to the Economic Survey 2021-22, India currently has the world’s third-largest startup ecosystem, trailing only the United States and China. Startups in India are likely to raise USD 180 billion in 2023.

Seed funding is the investment scheme for a firm where they can seek market validation simply with a product idea. Because the firm is in its early phases and hasn’t yet shown its market worthiness, this money often entails risk on the part of the entity providing the funding. However, significant risk occurs at a time when the startup’s valuation is low and it can scale and generate profitable returns.

Because the firm is in its early phases and hasn’t yet shown its market worthiness, this money often entails risk on the part of the entity providing the funding. However, significant risk occurs at a time when the startup’s valuation is low and it can scale and generate profitable returns.

The Startup India Seed Fund Scheme (SISFS) was launched with the aim of speeding the growth of the economy and participation on 19th April 2021, in India. Startup India Seed Fund Scheme (SISFS) can support startups in their early stages of development and offer financial assistance for a range of key activities, including prototype concept, prototype development, product trials, market entry, and commercialization.

Who is Eligible for this Scheme?

You are eligible to apply for the Startup India Seed Fund Scheme (SISFS) when you meet the following criteria

• It must be approved by the Department of Industry and Internal Trade (DPIIT).
• The startup must have been formed no more than two years prior to the application date.
• Preference will be given to startups developing new solutions in areas such as social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, health care, energy, mobility, defense space, railways, oil and gas, textiles, and so on.
• No other national or state government scheme should have provided more than RS.10 lakh in financial help to the startup.
• At the time of application to the incubator for the program, the startup’s Indian promoters must own at least 51% of the company’s shares.

If you want to apply for the Startup India Seed Fund scheme (SISFS), the process is quite straightforward and may be performed fast and without any fees online. You will also not be required to submit any physical copies of documents. Just sign in at https://seedfund.startupindia.gov.in/

Once a firm receives seed funding from the firm India Seed Fund Scheme, it must provide frequent updates on how the funds are being used.

To begin the release of the next payment of the award, the startup must submit an intermediate progress update and utilization certificate. At the end of the project, the startup must provide a final report as well as an audited utility certificate. However, in the event of a failing enterprise, the entrepreneur will be obligated to disclose the lessons learned.

Objectives of the Startup India Seed Fund Scheme (SISFS)

The Indian startup ecosystem has a lot of potential, but things can take a backseat due to crucial funding, especially at the development stage. The Startup India Seed Fund Scheme (SISFS) is an opportunity to make the most of it and contribute to the Indian economy.

In a nutshell, its goal is to help entrepreneurs with proof of concept, prototype development, product trials, market-entry, and commercialization. This scheme can be really beneficial for startups in need of seed funding and have a positive impact 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 state’s startup ranking framework and strengthened the support of states and union territories in building their startup ecosystems.

With the help of such schemes, it is going to benefit startups and the Indian economy in the long run.

As more startups contribute to the establishment of a robust healthcare system, employment in the healthcare and pharmaceuticals sector is likely to grow fast. Increased digital uptake across sectors will continue to create new opportunities for tech start-ups. During the recession, education services grew and expanded as people continue to improve their knowledge and abilities in order to advance in their careers.

Active startups will speed up economic growth and the country will take giant steps towards creating sustainable solutions across sectors.

Future Prospects of Startup India Seed Fund Scheme

Hiring activity in Indian startups suggests a robust recovery of economic growth, and the country is making significant gains in developing long-term solutions across industries. Furthermore, companies continue to innovate and disrupt in a variety of fields, including SpaceTech, FemTech, HealthTech, and FinTech. The groundwork has been laid for India to achieve its goal of being a USD5 trillion economy and global powerhouse by 2024-25.

To Conclude,

It is essential to look for various financial sources and increase your chances of acquiring the right financing in the early stages of your business. Banks are not the only source of loans and primary sources of financing. Seeking multiple options for finance is a great way to demonstrate that you are a proactive entrepreneur.

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