Incubators are the organizations that promote innovation and entrepreneurship among the citizens. The funds and the basic infrastructure to the startups are provided by the incubators for the startups to carry out business activities of development, product trial, market entry, commercialization, etc. Under this Start-up India Seed Fund Scheme 2021, the Government is going to provide a grant to the 300 incubators. An application by the incubators can be made through the official portal. The startups can also apply under this scheme directly from the portal and they can also select the incubators of their choice according to their preference.
1.The Government of India launched Start-up India Seed Fund Scheme 2021 to foster the growth of Startups in India. 2.The SISFS was launched on the 16th of January 2016 to provide opportunities for entrepreneurs to grow their enterprises. 3.Financial assistance of up to Rs.50 lakh will be provided to the startups to the startups at an early stage through the incubators 4.The fund will be used for proof of concept, prototype development, product trial, market entry, commercialization, etc.
On February 5, 2021, the Government of India made an official announcement about the approval of the Startup India Seed Fund Scheme. It has been approved for four years and was implemented with effect from April 1, 2021. 1. The Seed Fund will be disbursed to eligible startups through eligible incubators across India. 2. Once incubated, the startups will be provided physical infrastructure, support for testing, mentoring for prototype or commercialization, human resources, and legal compliances, all by the incubators
1. A startup should be recognized by DPIIT and incorporated not more than 2 years ago at the time of application The startup must have a business idea to develop a product or a service with the market fit, viable commercialization, and scope of scaling. 2. A startup should be using technology in their core product, service, business model, distribution model, methodology to solve the problem being targeted. 3. A startup should not have received more than Rs. 10 lakh of monetary support under any other Government scheme. This does not include prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to prototyping facility. 4.Shareholding by Indian promoters in the startup should be at least 51%, as per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018. 5. Preference will be provided to startups creating innovative solutions in the following sectors: Social impact -Waste management and Water management. -Financial inclusion. -Education and Agriculture. -Food processing and Biotechnology. -Healthcare. -Energy and mobility. -Defense and space. -Railways and Textiles. -Oil and gas.
1.The incubator must be a legal entity: -A society registered under the Societies Registration Act 1860. -A Trust registered under the Indian Trusts Act 1882. -A Private Limited company registered under the Companies Act 1956 of the Companies Act 2013. -A statutory body created through an Act of the legislature. 2. The incubator should be operational for at least two years on the date of application to the scheme 3.The incubator must have facilities to seat at least 25 individuals. 4.The incubator must have at least 5 startups undergoing incubation physically on the date of application 5. The incubator must have a full-time Chief Executive Officer, experienced in business development and entrepreneurship, supported by a capable team responsible for mentoring startups in testing and validating ideas, as well as in finance, legal, and human resources functions
An Experts Advisory Committee (EAC) will be constituted by DPIIT, which will be responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme. The EAC will evaluate and select incubators for allotment of Seed Funds, monitor progress, and take all necessary measures for efficient utilization of funds towards the fulfillment of objectives of Startup India Seed Fund Scheme.
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