With the ongoing market shifts more and more startups entering the market and embarking on their positions in the Unicorn Club. Thus, to support the young entrepreneurs and their sparkling ideas Union commerce minister Piyush Goyal on Monday formally unveiled a Startup India Seed Fund Scheme (SISFS) to handhold and financially support early-stage startups or budding ventures across 300 incubation centers. This is almost three months after the Centre declared the plan.
Moreover, as per the commerce ministry, the released fund is expected to serve around 3,600 startups. It is aiming to boost the ecosystem, specifically in tier-2 and 3 cities. Secondly, it is here to offer financial assistance to startups for proof of concept, prototype development, product trials, and seamless market entry.
For successful aid and support to startups, the administration decided to roll out a sum of INR 945 crore for the same.
Goyal said the SISFS will secure seed funding, support transformative ideas, innovation, implementation of ideas, and more.
The minister also said- the scheme will create a robust startup ecosystem, particularly in non-metros, which are often deprived of adequate funding. He would like to motivate innovators and entrepreneurs from rural areas to step ahead and benefit from this new scheme.
Now, the major questions arise, how to avail this scheme, then all those who will be eligible incubators or selected by an expert panel will be granted up to INR 5 crore. They shall be offered grants up to INR 20 lakh for validation of proof of concept, product trials, prototype, and more.
Moreover, investments of up to INR 50 lakhs shall be offered to startups for seamless entry in the market, commercialization, and debt-linked instruments via the scheme.
Goyal stated that the scheme is being launched within 3 months right after PM Modi announced, and said- “times are tough, but our resolve is strong, and never before has it become more important for us to empower our startups”.
In January 2021, at the Summit- “Parambh”, and PM said that his government is trying to create a startup system to help and aid young ventures, and functioning with the mantra of “of the youth, by the youth, for the youth”.
Lastly, the ministry said, that the scheme and released fund will allow incubators to apply for availing the benefits via an online platform.