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When a business is still in its early stages, it requires easy access to finance so founders can concentrate on business development. While startups can secure funding from angel investors and venture capital firms after proving their concept, many miss growth opportunities at the seed or incubator stages due to a lack of collateral for bank loans.
To address this, the Government of India introduced the Startup India Seed Fund Scheme (SISFS) on January 16, 2016. This scheme aims to provide financial and other forms of support to small startups, fostering a startup-friendly environment. The initiative helps startups at the incubator stage by offering financial assistance for prototype development, product testing, and market entry, enabling them to scale and contribute to the economy.
What is Startup India?
Startup India is a flagship initiative by the Government of India designed to foster a robust and inclusive environment for entrepreneurship and innovation in the country. Launched on January 16, 2016, the initiative provides support programs aimed at helping entrepreneurs, with the broader goal of making India a hub for job creators rather than job seekers.
What is the Startup India Seed Fund Scheme (SISFS)?
The Startup India Seed Fund Scheme (SISFS) provides financial support to startups for concept prototyping, product testing, market entry, and commercialization. This financial aid helps early-stage startups demonstrate proof of concept, enabling them to attract further investments from angel investors, venture capitalists, or banks.
Key Features of the Startup India Seed Fund Scheme (SISFS)
- No mandatory physical incubation requirement.
- Startups can apply to up to three investors simultaneously.