Startup India Seed Fund Scheme (SISFS)

AIC Nitte Incubation Centre has been selected as one of the incubators for providing Seed fund support to start-ups for proof of concept, prototype development, product trials, market entry and commercialization to early-stage start-ups. This would enable these start-ups 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.

AIC Nitte has already distributed Rs. 470+ lakhs to innovative start-ups under the Startup India Seed Fund Scheme.

SISFS Eligibility Criteria for Start-ups:

1. A startup recognized by DPIIT, incorporated not more than two years ago at the time of application.
2. Startup must have a business idea to develop a product or a service with the market fit, viable commercialisation, and scope of scaling.
3. Startup should not have received more than Rs 10 lakh of monetary support under any other Central or State 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 a prototyping facility.
4. Shareholding by Indian promoters in the startup should be at least 51% at the time of application to the incubator for the scheme, as per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
5. Any startup will not receive seed support more than once each as per provisions of para 8.1 (i) and 8.1 (ii), respectively
6. To apply for SISFS, log on to https://seedfund.startupindia.gov.in

Quantum of funding:

1. Up to Rs. 20 Lakhs as a grant for validation of Proof of Concept, prototype development, or product trials. The grant shall be disbursed in milestone-based instalments.
2. Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments

Startups can also raise funds through potential Venture Capitalists (VCs), Angel Investors, Personal Investors, Peer-to-Peer Lenders and also Financial Institutions.