The Startup India Seed Fund Scheme (SISFS) is a scheme by the Government of India (GOI) aimed to give financial assistance to startups for making proof of concept, prototype development, trial products and commercialisation. This is a flagship scheme under the government to support startups and promote the Make in India idea ensuring that India remains attractive to innovators developing startups and also encourage them begin their journey.
What is included in SISF ?
The scheme which came into effect from April 1, 2021.
Period of scheme is 4 years from effect date.
Corpus sum of ₹945 crores has been allotted for the scheme.
The Scheme aims to give financial assistance at the initial stages
Based on a report published by Ministry of Commerce & Industry on November 30, 2022, a total of 126 Incubators and 656 Startups have been selected on the portal in the years 2021 and 2022.
What is Seed Funding ?
Seed funding refers to the very first official funding that a Startup gets. This initial funding is crucial in the making or breaking of companies as the funding is a step in determining their future.
The Startup Seed Funding Scheme is an important scheme for budding entrepreneurs and innovators making a mark in the world. Indian’s often known for their ‘jugaadu’ nature often come up innovative solutions to problems. In the recent years, India has witnessed a boom in the formation of Startups, especially tech based ones.
After the idea is agreed upon, the team has to develop actual working models which involve lots of research and development costs which the entrepreneurs are unable to bear and require funding to proceed in building the prototypes and making finished products for
the end consumer in the markets.
If the government plans to keep steam in this Startup revolution, schemes like this become detrimental as it not only recognizes the efforts of the founders but give them a fair chance at actually building a business instead of dying out due to lack of funds.
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