Startup India Seed Fund Scheme (SISFS)

The 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. The scheme addresses capital inadequacy in the seed and 'Proof of Concept' development stages, enabling startups to graduate to a level where they can raise investments from angel investors, venture capitalists, or seek loans from commercial banks.

For Startups:

• Must be recognized by DPIIT and incorporated not more than 2 years ago at the time of application
• Must have a business idea to develop a product or service with market fit, viable commercialization, and scope of scaling
• Should be using technology in its core product/service, business model, distribution model, or methodology
• Should not have received more than ₹10 lakh monetary support under any other Central or State Government scheme
• Shareholding by Indian promoters should be at least 51% at the time of application
• Eligible entity types: Private Limited Company, Registered Partnership Firm, or Limited Liability Partnership
• Turnover should not have exceeded ₹100 crore for any financial year
• Should not have been formed by splitting up or reconstruction of a business already in existence

• Individual entrepreneurs (non-incorporated entities)
• Startups older than 2 years
• Startups that have received more than ₹10 lakh of monetary support under other government schemes
• Startups with less than 51% Indian promoter shareholding
• Sole proprietorships or public limited companies
• Entities formed by splitting up or reconstructing existing businesses

• Up to ₹20 Lakhs as grant for validation of Proof of Concept, prototype development, or product trials
• Up to ₹50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures, debt, or debt-linked instruments
• Access to physical infrastructure and mentoring from incubators
• Support for testing and validating ideas
• Mentoring for prototype development or commercialization
• Assistance in developing capabilities in finance, human resources, legal compliance, and other functions
• Networking with investors and opportunities for showcasing in various events

Preference is given to startups creating innovative solutions in sectors such as:

• Social impact
• Waste management and water management
• Financial inclusion and education
• Agriculture and food processing
• Biotechnology and healthcare
• Energy, mobility, defense, and space
• Railways, oil and gas, textiles, etc.

• Seed fund shall strictly not be used by startups for creation of any facilities and shall be utilized only for the purpose it has been granted for

• Funds will be disbursed in milestone-based installments
• For investment through convertible debentures, debt, or debt-linked instruments:
• Interest rate not more than the prevailing repo rate
• Tenure not more than 60 months (5 years)
• Moratorium of up to 12 months possible
• No guarantee from promoter or third party required
• First installment release within 60 days of application approval
• Progress updates and utilization certificates required for subsequent installments
• Final report and audited utilization certificate required at project end
• Startups cannot use funds for facility creation
• All funding agreements executed before first disbursement

• Startups apply through the Startup India portal
• Applications are evaluated by the Incubator Seed Management Committee (ISMC)
• ISMC assesses applications based on need, feasibility, potential impact, novelty, team strength, and fund utilization plan
• Selected startups receive funding through their preferred incubator
• Progress is tracked on parameters including prototype development, product development, field trials, market launch, funding raised, jobs created, and turnover

While applying, select ‘Ahmedabad University Support Foundation’ in the preferred incubator list.