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Startup India Seed Fund Scheme

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Startup India Seed Fund Scheme

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EAdvisors expert will contact you to discuss about everything about the startup and then will begin with the Startup India Seed Fund Scheme.

Drafting of Application

From drafting of registration application to solving your queries and helping you throughout the process, EAdvisors will be doing all of it with the prior information given to you.

Issuance of Certificate

Once every compliance is followed and the required information is submitted. Within just few days, you will get the certificate of the same after which you can avail seed funding.

Startup India Seed Fund Scheme


Startup India Seed Fund Scheme Year is 1st April, 2021. The year when an initiative was taken to help startups grow well and further help in employment generation. The objective of the Startup India Seed Fund Scheme focuses on providing a helping hand in the initial stage. Doing so, will help the startups to raise investment from angel investors or venture capitalists or able to seek loans from commercial banks or financial institutions.

Startup India Seed Fund Scheme is a PAN-India startup programmee so that every startup lacking funds and apply for SISFS and avail the benefit of it.


Startups having good business ideas often suffer due to the lack of good capital requirements. Due to which our Indian Startup ecosystem is seen to decline, leading to a bad face. The shortage of capital requirement is seen at the stage of “Proof of Concept” development stage, prototype development, product trials, market entry and commercialization.

To cure all of that at once, Startup India Seed Fund Scheme came into existence. To help startups with the capital and help them in leading a good business.

Eligibility for Seed Funding

Here is what you must go through to make sure you fall under the Startup India Seed Fund Scheme eligibility.

For Startups

  1. The startup must be DPIIT (Department for Promotion of Industry and Internal Trade) recognized and should be incorporated not later than 2 years at the time of application.
  2. Startup wishing to apply for seed funding must have a business idea that fits the market and has a high scope of scaling in future.
  3. A Startup is eligible for SISFS if it uses technology in the core product or service, or business model, or distribution model, or methodology for solving the problem.
  4. For being capable for Startup India Seed Fund Scheme, the prior preference is given to startups aiming to create an innovative solution. The startups having solutions to look into the social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas textiles etc.
  5. No startup should have gained monetary support from any Central or State Government of more than Rs. 10 Lakhs. If gained then, that startup would, unfortunately, will not be eligible to apply under Startup India Seed Fund Scheme. However, it 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.
  6. As per the Companies Act 2013 and SEBI Regulations 2018, the shareholding of the Indian promoter of the startup should be atleast 51%. And this shareholding shall stay the same at the time of application to incubator for SISFS.
  7. No startup can get seed support for their startup more than once.

For Incubators

The Startup India Seed Fund Scheme eligibility criteria for Incubators is 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 registered under the Companies Act 1956 or the Companies Act 2013, or
    d) A statutory body created through an Act of the legislature
  1. Incubator should be operational for at least two years on the date of application to the SISF scheme.
  2. The eligible incubator should make sufficient arrangements like having a sitting capacity of at least 25 individuals.
  3. Incubator must have at least 5 startups undergoing incubation physically on the date of application
  4. For applying under Startup India Seed Fund Scheme, incubator should have appointed a full-time Chief-Executive Officer (CEO), The CEO must have good knowledge and skills for business development and entrepreneurship. Also, CEO should contain a team responsible for mentoring startups in testing and validating ideas as well as in finance, legal and human resource functions.
  5. Incubator must make sure that it should not be disbursing seed fund to incubatees using funding from any third-party private entity
  6. Incubator must have been assisted by Central/State Government(s). Where no assistance is provided by Central or State Government then, in that case :-
    a) Incubator must be operational for at least three years
    b) Must have at least 10 separate startups undergoing incubation in the incubator physically on the date of application
    c) Must present audited annual reports for the last 2 years
  7. Any additional criteria as may be decided by the Experts Advisory Committee (EAC).

Formation of EAC

Experts Advisory Committee (EAC) is required to be constituted by DPIIT. The EAC Committee shall be responsible for the overall execution and monitoring of the Startup India Seed Fund Scheme. In addition, SISFS will be evaluating and selecting the incubators for allotment of Seed Funds. Moreover, EAC shall also monitor the actual progress and will be liable to take necessary measures. For efficient utilization of seed funds and fulfilling the objective of Startup India Seed Fund Scheme, EAC is answerable.

The Experts Advisory Committee should have the following members:-

  1. Chairman
  2. Financial Advisor
  3. Additional Secretary/ Joint Secretary/ Director/ Deputy Secretary, DPIIT (Convener)
  4. Representative of Department of Biotechnology (DBT)
  5. Representative of Department of Science & Technology (DST)
  6. Representative of Ministry of Electronics and Information Technology (MeiTY)
  7. Representative of Indian Council of Agricultural Research (ICAR)
  8. Representative of NITI Aayog
  9. At least three expert members nominated by Secretary, DPIIT from the startup ecosystem, investors, experts in the domain of R&D, technology development and commercialization, entrepreneurship and other relevant domains.

To go further in additional detail, you may go through, Startup India Seed Fund Scheme pdf

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Frequent Asked Questions

Startup India Seed Fund Scheme

A Seed Funding Scheme for Startups in India to help all the startups with financial assistance. This scheme helps in providing all kind of support required by the startup to run well and earn well.

Companies get seed funding from their private investors. Also, can be provided by accredited investors, crowdfunding investors and also angel investors.

Yes, for startups to scale and generate employment in India, government has introduced a lot of Schemes. One of them is , Startup India Seed Fund Scheme which helps the startups to receive financial support from the government. The support includes providing the startups with proof of concept, prototype development, product trial, market entry and commercialization.

Depending on the purpose of startup, different reasons can be there to raise funds. Here are some of the common reasons of why funding is required by startups in India, namely:-

  • Prototype Creation
  • Product Development
  • Team Hiring
  • Working Capital
  • Legal & Consulting Services
  • Raw Material & Equipments
  • Licenses & Certifications
  • Marketing & Sales
  • Office Space & Admin Expenses

Here some of the startup funding types, namely:-

  1. Series Funding
  2. Crowdfunding
  3. Loans
  4. Venture Capital
  5. Angel Investors

For a startup, seed funding can be obtained either from friends or family members. Other way out is to get seed funding from angel investors and venture capitalists. The usual amount of seed funding in India ranges from Rs. 20,00,000 to Rs. 50,00,000.

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