Startup India Seed Fund Scheme (SISFS)

MII Foundation has been chosen as an incubator to offer seed funding for early-stage start-ups. This support will cover proof of concept, prototype development, product trials, market entry, and commercialization. The goal is to help these start-ups advance to a stage where they can attract investments from angel investors or venture capitalists, or secure loans from commercial banks and financial institutions. 

MII Foundation has allocated a fund of 10 crore INR specifically for innovative start-ups.

SISFS Eligibility Criteria for Start-ups:

1. A startup recognized by DPIIT, incorporated not more than two years ago at the time of application.
2. Startup must have a business idea to develop a product or a service with the market fit, viable commercialization, and scope of scaling.
3. Startup should not have received more than Rs. 10 lakh of monetary support under any other Central or State Government scheme. This 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.
4. Shareholding by Indian promoters in the startup should be at least 51% at the time of application to the incubator for the scheme, as per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
5. Any startup will not receive seed support more than once each as per provisions of para 8.1 (i) and 8.1 (ii), respectively

To apply for SISFS, log on to https://seedfund.startupindia.gov.in  

Quantum of funding:

1. Up to Rs. 20 Lakhs as a grant to validate Proof of Concept, prototype development, or product trials. The grant shall be disbursed in milestone-based installments.
2. Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments.

Startups can also raise funds through potential Venture Capitalists (VCs), Angel Investors, Personal Investors, Peer-to-Peer Lenders and also Financial Institutions.