Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise. Funding from angel investors and venture capital firms becomes available to startups only after the proof of concept has been provided. Similarly, banks provide loans only to asset- backed applicants. It is essential to provide seed funding to startups with an innovative ideas to conduct proof of concept trials.
SP-TBI with the help of Startup India Seed Fund Scheme (SISFS) aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization. This would enable these startups to graduate to a level where they will be able to raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions.
The SISFS provides up to INR 20 Lakhs as grant for validation of Proof of Concept, or prototype development, or product trials. The grant shall be disbursed in milestone-based installments. These milestones can be related to the development of a prototype, product testing, building a product ready for market launch, etc.
And this scheme provides up to INR 50 Lakhs of investment to the startups for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments.
The eligibility criteria for a startup to apply under the Startup India Seed Fund Scheme shall be as follows: