Start-Up Funding Facilitation Sound Advice, Efficient Service
The start-ups may get investment from the Startup India Funds of Fund and Angel Investors. We advise on regulatory approvals, valuation of start-ups and in filings for allotment of shares required for funding.
Startup India Seed Fund Scheme - Overview
Startup India Seed Fund Scheme was launched by the Indian Government on February 16th, 2014. The main reason for its introduction was to provide financial support to Startups during their initial stages of operations. Startups usually face funding shortage during their initial stages as most private investors do not consider them credible enough. This is because, at this stage, Startups are usually unable to generate high revenues and promise high returns on investment. To reach this point, startups have to formulate ideas, develop products and test them for commercial launch. This is a crucial phase where they require immense financial support. This is what the Government wants to achieve through the Startup India Seed Fund Scheme. Startups can apply for Startup India Seed Fund through an online process on the
Eligibility to Apply for Startup India Seed Fund
Incubators nominated by the DPIIT select Startups for the disbursal of Startup India Seed Fund. However, the basic eligibility criteria for selection is defined under the Seed Fund Scheme. These criterias are based on multiple factors like DPIIT Recognition, age of the startup, nature of products, and shareholding. Let’s go through each of them one by one
How to get Seed Funding for Startup in India?
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2024
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Step-1: Register on Startup India Portal
This is one of the major prerequisites of the application process. The applicant is required to register on the Startup India Portal using an active mobile number and email address. After the registration process is complete, the applicant receives login credentials on his registered email.
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Step-2: Get DPIIT Recognition Certificate
Use the login credentials to sign into the Startup India portal. Apply for Startup Recognition by the DPIIT. Make sure the Recognition is obtained within 2 years from the date of incorporation. This is because Seed Fund cannot be applied for after 2 years from incorporation.
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Step-3: Apply for Startup India Seed Fund
After you’ve received the DPIIT Recognition Certificate, you’re ready to file the Startup India Seed Fund Application. The same can be done on the Seed Fund Website. Login using your Startup India Account credentials. Access the application, fill in the details online and upload the necessary documents.
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2024
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Step-4: Evaluation & Shortlisting By Incubators
After the application is submitted on the Startup India Seed Fund website, it will reach your preferred incubators. These incubators will evaluate your application, and if convinced, will shortlist it for further examination.
Benefits of Startup India Seed Fund Scheme
01.Rs.20 Lakhs of Funds in Initial Stages
Your startup could receive Rs.20 Lakhs worth of funds for proof of concept validation, prototype development, and product trials.
02.Rs.50 Lakhs of Funds for Market Entry
Your Startup could receive Rs.50 Lakhs worth of funds for commercial launch of products, and scaling up the business.
03.Quick Disbursal of Funds
Incubators are legally bound to disburse the first instalment of seed funds within 60 days from the date of application.
04.Milestone-based Installments
All subsequent instalments are released by incubators only after the startup submits its progress report.