Startup India Seed Fund Scheme (SISFS)
Recently, The Ministry of Commerce and Industry has launched the Rs. 945 crore Startup India Seed Fund Scheme (SISFS) to provide capital to promote new industries.
The scheme was announced by the Prime Minister on January 16, 2021, on the occasion of the ‘Startup India International Summit’ organized to celebrate the completion of 5 years of the Startup India initiative.
Purpose of the financial assistance:
The Fund aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry and commercialization.
- This scheme will help entrepreneurs and their innovative ideas to move forward, which was usually not possible in the absence of significant capital.
- Seed Fund is the initial equity capital that startups raise to start a business. This scheme will benefit about 3,600 startup entrepreneurs and this scheme will provide security to the initial financing for startups and will also inspire innovation.
- The scheme has been approved for a period of next four years starting from 2021-22, commencing from 1 April 2021.
- The scheme will create a strong startup ecosystem, particularly in India’s Tier 2 and Tier 3 cities, which are often deprived of sufficient funds. This will provide opportunities for innovators from villages and small urban areas to come forward.
Startup India is a major initiative of the Government of India, which aims to create a strong ecosystem for startups and new ideas in the country, leading to economic development of the country and generating employment opportunities on a large scale. The campaign was announced by Indian Prime Minister Narendra Modi on 15 August 2015 from the Red Fort.
The action plan of this initiative focuses on three areas –
- Facilitation and handholding
- Funding Support and Incentives
- Industry-Academia Partnership and Incubation
Source – PIB