Startup India Seed Fund Scheme
(SISFS)
Overview
The Startup India Seed Fund Scheme (SISFS), launched by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry, Government of India, aims to provide financial assistance to early-stage startups for proof of concept, prototype development, product trials, market entry, and commercialization.
It bridges the critical “Valley of Death” funding gap where startups struggle to raise capital after developing an idea but before generating revenue.
The scheme is implemented through selected incubators across India, which receive funds from DPIIT to support eligible startups.
Objectives
- Provide seed funding to startups for early-stage activities.
- Support innovative startups in prototype development, product validation, and market entry.
- Strengthen the role of incubators in nurturing young businesses.
- Strengthen the role of incubators in nurturing young businesses.
- Promote innovation-driven entrepreneurship across India.
Offerings
For Startups
- Seed Funding:
Up to â‚ą20 lakhs for validation of Proof of Concept (PoC), prototype development, or product trials.
Up to â‚ą50 lakhs for market entry, commercialization, or scaling through convertible debentures or debt-linked instruments.
- Incubation Support: Access to labs, co-working space, testing facilities, and mentoring.
- Networking Opportunities: Connections with investors, industry, and corporate partners.
Eligibility
For Startups
- Must be recognized by DPIIT as a startup.
- Incorporated not more than 2 years before the date of application.
- Startup should not have received more than â‚ą10 lakh of financial support under any other central/state scheme (excluding prize money, subsidized working space, founder monthly allowance, etc.).
- Must have a business idea with potential for scaling and employment generation.
- Preference to startups working in new/innovative areas or leveraging technology for societal impact.
Selection Process
1. For Startups:
a. Apply directly to incubators supported under SISFS via the Startup India portal.
b. Applications are evaluated by an Incubator Seed Management Committee (ISMC) consisting of incubator heads, investors, domain experts, and government representatives.
c. Selection is based on innovation, feasibility, scalability, and team strength.
Financial Support Details
Startup Level:
- Up to â‚ą20 lakhs as grant (for PoC, prototype, trials).
- Up to â‚ą50 lakhs as debt/convertible debenture (for commercialization/market entry).
Up to â‚ą20 lakhs as grant (for PoC, prototype, trials).
Up to â‚ą50 lakhs as debt/convertible debenture (for commercialization/market entry).