Sarkari Yojana
Startup India Seed Fund Scheme- For Incubators
About Startup India Seed Fund Scheme- For Incubators
The Department for Promotion of Industry and Internal Trade (DPIIT) launched the Startup India Seed Fund Scheme (SISFS) on 19th April 2021, with an outlay of INR 945 Crore, to give startups financial assistance for Proof of Concept work, prototype development, product trials, market entry, and commercialization. Eligible startups apply through the Startup India portal, and the Seed Fund reaches selected startups via eligible incubators located across India. > Objective Of The Scheme:
SISFS aims to fund startups at the Proof of Concept, prototype development, product trial, market-entry and commercialization stages, helping them reach a level where they can attract investment from angel investors or venture capitalists, or secure loans from commercial banks and financial institutions. > Features:
- Applications from Incubators and Startups are invited all year round
- The scheme is sector-agnostic
- Physical incubation is not mandatory
- It operates as a PAN-India startup programme
- Startups may apply to up to 3 incubators at the same time
Scheme Overview
Central Government
Ministry Of Commerce And Industry
Department For Promotion Of Industry And Internal Trade
Business Entity
Scheme Details
Eligibility Requirements
To qualify for Startup India Seed Fund Scheme- For Incubators, applicants must satisfy the following conditions:
An incubator applying under the Startup India Seed Fund scheme must meet the following criteria:
It must be a legal entity, being either
It must be a legal entity, being either:
a society registered under the Societies Registration Act…
a society registered under the Societies Registration Act 1860, or
a Trust registered under the Indian Trusts Act…
a Trust registered under the Indian Trusts Act 1882, or
a Private Limited company registered under the Companies…
a Private Limited company registered under the Companies Act 1956 or the Companies Act 2013, or
a statutory body created through an Act of…
a statutory body created through an Act of the legislature.
It must have been operational for at least…
It must have been operational for at least two years as of the date of application.
It must be able to seat at least…
It must be able to seat at least 25 individuals.
It must have at least 5 startups physically…
It must have at least 5 startups physically undergoing incubation on the date of application.
It must have a full-time Chief Executive Officer…
It must have a full-time Chief Executive Officer with experience in business development and entrepreneurship, supported by a competent team that mentors startups on testing and validating ideas and on finance, legal, and HR matters.
It must not be disbursing seed funds to…
It must not be disbursing seed funds to incubatees using funds sourced from any third-party private entity.
It must have previously received assistance from the…
It must have previously received assistance from the Central/State Government(s).
Where it has not received Central or State…
Where it has not received Central or State Government assistance:
it must have been operational for at least…
it must have been operational for at least three years,
it must have at least 10 separate startups…
it must have at least 10 separate startups physically undergoing incubation on the date of application, and
it must present audited annual reports for the…
it must present audited annual reports for the last 2 years. Note: The Experts Advisory Committee (EAC) may prescribe any additional criteria.
Benefits Provided
Startup India Seed Fund Scheme- For Incubators provides the following benefits to eligible applicants:
A selected incubator can receive a grant of…
A selected incubator can receive a grant of up to ₹5 (five) crore, released in three or more milestone-based instalments.
A Management Fee equal to 5% of the…
A Management Fee equal to 5% of the Seed Fund grant is also provisioned for the incubator (so an incubator granted ₹1 crore of Seed Fund would receive total assistance of ₹1.050 crore, including the management fee). Note 01: The Experts Advisory Committee (EAC) decides the exact grant amount and instalment structure for each incubator based on its evaluation. Note 02: Incubators may use the grant only to disburse funds to eligible startups, not for facility creation or other expenses. Note 03: The Management Fee given to incubators cannot go towards facility creation or other administrative expenses; it is meant for administrative costs, selecting and vetting startups, and monitoring beneficiary progress. Note 04: Instalments are released to incubators once they submit proof of achieving the milestones set by the EAC, with a proportionate Management Fee released alongside each instalment. Note 05: The first instalment can be up to 40% of the total approved commitment. Once the incubator's cash-in-hand falls below 10% of the EAC's total commitment, it may request the next instalment, which is released within 30 days of submitting proof of milestone achievement. Note 06: The incubator must fully utilise the grant within three years of receiving the first instalment. Note 07: An incubator that has not used at least 50% of its total commitment within the first 2 years becomes ineligible for further drawdowns and must return all unutilized funds along with interest. Note 08: Interest earned on unutilized funds held by incubators is accounted for and adjusted at the time of the next release. Note 09: Beneficiaries are financed with efficiency and care, and selected incubators are responsible for properly managing and disbursing the Seed Fund. Note 10: The selected incubator must maintain a transparent process for selecting, monitoring and disbursing the fund, releasing Seed Fund to selected startups only after due diligence. Note 11: Incubators must provide selected startups with physical infrastructure for regular functioning, help testing and validating ideas, mentor them on prototype/product development or commercialization, and build their capacities in finance, HR, legal compliance and other functions; they are also expected to connect startups with investors and give them opportunities to showcase at national and international events. If a selected startup does not want to use the incubator's physical infrastructure, the incubator must still offer all other resources and services. Note 12: A startup selected by an incubator for assistance under this scheme cannot be charged any fees.
Documents Required
Applicants should keep the following documents ready before starting the application:
Documentation establishing the incubator as a legal entity
Documentation establishing the incubator as a legal entity.
Evidence of support received from the Central or…
Evidence of support received from the Central or State Government.
Certificate of incorporation
Certificate of incorporation.
PAN card issued to the legal entity
PAN card issued to the legal entity.
Board resolution, authorisation letter, or power of attorney
Board resolution, authorisation letter, or power of attorney.
Aadhaar card belonging to the authorised signatory
Aadhaar card belonging to the authorised signatory.
Audited annual reports covering the preceding two years
Audited annual reports covering the preceding two years.
The agreement executed between the incubator and the…
The agreement executed between the incubator and the startup.
Photographs showing the incubator's facilities
Photographs showing the incubator's facilities.
CVs of the incubation centre's full-time staff
CVs of the incubation centre's full-time staff.
A pitch deck describing the incubator
A pitch deck describing the incubator.
A self-declaration signed by the incubator's authorised signatory
A self-declaration signed by the incubator's authorised signatory.
Any additional document that may be required
Any additional document that may be required.
How to Apply
Online Application
Applicants can apply for Startup India Seed Fund Scheme- For Incubators through the online application process outlined below.
Application Procedure:
The Call for Applications for incubators stays open…
The Call for Applications for incubators stays open online throughout the year.
Incubators across India are invited to submit Applications…
Incubators across India are invited to submit Applications online to join the scheme, either at https://www.startupindia.gov.in or another designated platform (https://seedfund.startupindia.gov.in/).
Applicants who are not already registered must first…
Applicants who are not already registered must first register on the Startup India portal with their details.
After registering successfully, the applicant logs in and…
After registering successfully, the applicant logs in and applies under the scheme by selecting 'Incubator'.
Note 01: The entire submission process is online, with no physical submission of documents required.
Note 02: There is no application fee for the scheme. Even once an incubator selects a startup for assistance, the startup cannot be charged any fee, and neither the incubator nor its staff may charge applicants or beneficiaries any fee, in cash or kind, for selection, disbursement, incubation, or monitoring.
Note 03: An incubator may reapply for funds under the Scheme once it has disbursed or committed the entirety of its previously released grant.
Selection of Incubators:
Incubators are selected based on the following parameters:
1. Meeting the eligibility criteria
2. The quality of the incubator's team
3. Available infrastructure, testing labs, etc.
4. The composition of the Incubator Seed Management Committee (ISMC)
5. Incubation support extended over the past three years:
Number of startups incubated
Number of startups that graduated, i.e. moved from one stage of the business development cycle to the next
Number of startups that raised follow-on investment
Number of startups that crossed ₹1 Cr in revenue within the last year
The 2-year survival rate of startups from the date they joined the incubator
6. Funding support extended to incubatees over the past three years:
Investment agreements signed between incubators and startups
The number of startups invested in
The total corpus allocated to incubatees
Total investment raised by incubatees from external sources
7. Mentoring provided to incubatees over the past three years:
The number of mentors engaged
Average mentoring hours provided per startup each month
The number of IP registrations (patents, copyrights, designs, trademarks) achieved by incubatees
8. Other support extended to incubatees over the past three years:
Industry/corporate connections made
Events held for stakeholder engagement
Participation in other events
9. The number of startups the incubator plans to support
10. The quantum of funds applied for, along with a fund deployment plan and timelines
11. Any other relevant parameters the Experts Advisory Committee (EAC) may decide upon.
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.