The Startup India Seed Fund Scheme (SISFS) is a crucial initiative by the Government of India designed to provide seed funding to innovative startups. This scheme enables early-stage businesses to grow and scale by offering them essential financial support. Below are the detailed eligibility criteria for startups to apply under this scheme:
1. DPIIT Recognition and Recent Incorporation
- To qualify, a startup must be recognized by the Department for Promotion of Industry and Internal Trade (DPIIT).
- The business should be incorporated no more than 2 years before applying for the Seed Fund Scheme, ensuring only young startups get the necessary support.
2. Market-Ready Business Idea with Growth Potential
- Eligible startups must have a viable product or service concept with the potential for market fit, successful commercialization, and scalability.
- This ensures that the businesses have a solid foundation and a high likelihood of creating value in the market.
3. Core Use of Technology
- Technology must be central to the startup’s product, service, business model, or methodology. The focus on technology ensures the startup’s solution is innovative, efficient, and capable of addressing significant market challenges.
4. Priority for High-Impact Sectors
- Preference is given to startups operating in key sectors such as social impact, waste and water management, financial inclusion, education, agriculture, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, and textiles.
- Startups in these areas are highly encouraged to apply, as they contribute significantly to economic and social transformation.
5. Limit on Previous Government Funding
- To ensure fair support distribution, startups should not have received more than INR 10 lakh in financial support from other Central or State Government schemes. However, certain exceptions apply, including:
- Prize money from competitions
- Access to subsidized workspaces
- Founder allowances
- Lab access or prototyping facilities
6. Indian Promoter Shareholding Requirement
- As per the Companies Act, 2013, and SEBI (ICDR) Regulations, 2018, at least 51% of the startup’s shares should be held by Indian promoters at the time of application.
- This requirement ensures a strong domestic presence in the startup ecosystem.
7. One-Time Seed Support Provision
- Startups can only avail of seed funding once under each provision of the scheme. This criterion ensures that support is directed to multiple businesses, creating a broad impact across the entrepreneurial ecosystem.
Applying for the Startup India Seed Fund Scheme
Startups meeting these criteria can approach an incubator registered under the SISFS program. By following these eligibility criteria closely, startups can better position themselves to leverage this funding and drive their business forward.
