About Startup India Seed Fund Scheme (SISFS):
- It is a flagship scheme launched in April 2021 under the Startup India
- Aim: Financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
- It is implemented with effect from 1st April 2021 for the period of 4 years with a corpus of 945 crores.
- Nodal Department: Department for Promotion of Industry and Internal Trade (DPIIT), under the Ministry of Commerce & Industry.
- Funding:
- An Experts Advisory Committee (EAC) has been created by DPIIT to execute and monitor the SISFS.
- The EAC will select eligible incubators who will be provided grants of up to Rs 5 Crores each.
- In turn, the selected incubators will provide startups with up to Rs 20 lakhs for validation of Proof of Concept, prototype development, and product trials to startups.
- Eligibility criteria for Startups:
- A startup recognized by DPIIT incorporated not more than 2 years ago at the time of application.
- The startup must have a business idea to develop a product or a service with a market fit, viable commercialization, and scope of scaling.
- The 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.
- Startup should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme.
- Shareholding by Indian promoters in the startup should be at least 51% at the time of application to the incubator for the scheme.
