Startup India Seed Fund Scheme- For Incubators

What is Startup India Seed Fund Scheme- For Incubators?

The scheme “Startup India Seed Fund Scheme (SISFS)” was launched by the DPIIT on 19th April 2021 to provide financial assistance to startups for proof of concept, prototype development, product trials, market-entry, and commercialization.

Benefit

1. A Grant of up to ₹5 (five) crore would be provided to a selected incubator in milestone-based three (or) more installments. 1. A component of Management Fee @ 5% of the Seed Fund grant to the incubator will be provisioned (i.e. if an incubator is granted ₹1 crore of Seed Fund, then by including management fee @ 5%, the total assistance would be ₹1.050 crore). **Note 01:** The exact quantum of grant and installments for each incubator will be decided by the Experts Advisory Committee (EAC) based on its evaluation. **Note 02:** Incubators shall use the grant only for disbursal to eligible startups and shall not use the grant for facility creation or any other expenses. **Note 03:** The Management Fee provisioned for incubators shall not be used by the incubator for facility creation or any other administrative expenses. The Management Fee will be utilized for administrative expenditure, selection and due diligence of startups, and monitoring of the progress of beneficiary startups. **Note 04:** Installments shall be released to incubators upon submission of proofs of achievement of milestones as decided by EAC. A Proportionate Management fee shall also be released with each installment. **Note 05:** The quantum of the first installment may be up to 40% of the total approved commitment. When the cash-in-hand of the incubator goes below 10% of the total commitment by EAC, the Incubator may request for the next installment, which shall be released to the incubator within 30 day

Level

Central

Ministry / Dept.

Ministry Of Commerce And Industry

Benefit type

cash

Key eligibility

The eligibility criteria for an incubator to apply in the Startup India Seed Fund scheme are as follows: 1. Incubator must be a legal entity: a) A society registered under the Societies Registration Act 1860, or b) A Trust registered under the Indian Trusts Act 1882, or c) A Private Limited company

Last verified

Recently

Benefits

1. A Grant of up to ₹5 (five) crore would be provided to a selected incubator in milestone-based three (or) more installments. 1. A component of Management Fee @ 5% of the Seed Fund grant to the incubator will be provisioned (i.e. if an incubator is granted ₹1 crore of Seed Fund, then by including management fee @ 5%, the total assistance would be ₹1.050 crore). **Note 01:** The exact quantum of grant and installments for each incubator will be decided by the Experts Advisory Committee (EAC) based on its evaluation. **Note 02:** Incubators shall use the grant only for disbursal to eligible startups and shall not use the grant for facility creation or any other expenses. **Note 03:** The Management Fee provisioned for incubators shall not be used by the incubator for facility creation or any other administrative expenses. The Management Fee will be utilized for administrative expenditure, selection and due diligence of startups, and monitoring of the progress of beneficiary startups. **Note 04:** Installments shall be released to incubators upon submission of proofs of achievement of milestones as decided by EAC. A Proportionate Management fee shall also be released with each installment. **Note 05:** The quantum of the first installment may be up to 40% of the total approved commitment. When the cash-in-hand of the incubator goes below 10% of the total commitment by EAC, the Incubator may request for the next installment, which shall be released to the incubator within 30 day

Eligibility

Documents Required

How to Apply

1. Step 1: Online application — step 1

   Application Procedure:

2. Step 2: Online application — step 2

   Step 01: The Call for Applications for incubators will be open online throughout the year. Step 02: Online Applications will be invited from incubators across India to participate in the scheme on https://www.startupindia.gov.in or any other platform specifically designated for the purpose. ( https://seedfund.startupindia.gov.in /) Step 03: Applicants need to register on the Startup India portal , if not registered, using their details. Step 04: After successful registration, the applicant can login and apply under the scheme by selecting ‘Incubator’. Note 01: The application submission is completely online, and no physical submission of documents is required. Note 02: There are no application fees for the scheme. Even after the selection of a startup by an incubator for assistance under this scheme, the startup shall not be charged any fees. The incubator or any of its staff members shall not charge any fee in cash or in kind from applicants or beneficiaries under the scheme for any process of selection, disbursement, incubation, or monitoring. Note 03: An incubator can reapply for funds under the Scheme when it has disbursed or committed its entire previously released grant. Selection of Incubators: Incubators shall be selected on the basis of the following parameters: 1. Fulfillment of eligibility criteria 2. Quality of the team of Incubator 3. Available infrastructure, testing labs, etc. 4. Composition of Incubator Seed Management Committee (ISMC) 5. Incubation support provided by incubator in the last three years: No. of startups incubated No. of startups graduated, i.e. progressed from one stage of the business development cycle to the next No. of startups that raised follow-on investments No. of startups that crossed revenue of Rs 1 Cr in the last 1 year 2-year survival rate of startups from the date of joining incubator 6. Funding support extended to incubatees in the last three years: Investment agreements signed between incubators and startups No. of startups invested in Total corpus allocated to incubatees Total investments raised by incubatees from external sources 7. Mentoring provided to incubatees in the last three years: No. of mentors hired Average mentoring hours allocated per startup per month No. of IP (patents, copyrights, designs, and trademarks) registered by incubatees 8. Other support extended to incubatees in the last three years: Industry/Corporate connects Events held for stakeholder engagements Participation in other events 9. Number of startups that the incubator intends to support 10. Quantum of funds applied for, along with fund deployment plan with timelines 11. Any other relevant parameters that decided by the Experts Advisory Committee (EAC).

Sources & References

• Official scheme website ↗
• Source record ↗
• Information is summarised from official government sources. Verify all details on the official website before applying.