3,600 startups expected to benefit from SISFS
Commerce and Industry Minister Piyush Goyal has launched a Rs.945 crore Startup India Seed Fund Scheme (SISFS) which is expected to support an estimated 3,600 startups through 300 incubators over the next four years.
The Fund aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization, the Ministry said on 19 April 2021.
“Times are tough, but our resolve is strong, and never before has it become more important for us to empower our startups,” said Goyal on launching the fund within three months of its being announced by Prime Minister Narendra Modi on 16 January 2021 in his Grand Plenary address of ‘Prarambh: StartupIndia International Summit’, marking the five-year anniversary of the Startup India initiative.
The SISFS will Secure seed funding, Inspire innovation, Support transformative ideas, Facilitate implementation, and Start startup revolution. It will create a robust startup ecosystem, particularly in Tier 2 and Tier 3 towns of India, which are often deprived of adequate funding.
The Minister is especially encouraging innovators from rural areas to come forward and benefit from this scheme.
Noting that the DPIIT has worked tirelessly to bring a tectonic shift in the startup ecosystem in India, Goyal assured that the department has been acting as the Facilitator, with Open door, Open Arms and Open Mind, encouraging large scale youth participation in the innovative activities.
There has been change in approach, change in mindset from jobseekers to job providers, which is helping Startups to become the backbone of New India, Goyal pointed out, adding that the Scheme will act as a bridge between ideas and their implementation.
Independent and ambitious thinking in the Startup ecosystem will encourage entrepreneurship and create a culture that will recognise innovation, said the Minister.
He observed that 2020 was testament to the transformative potential of Indian Startup – Startups with their energy and enthusiasm came up with efficient and cost effective solutions which ensured last mile supply of essential commodities across India.
He launched the country’s young entrepreneurs for the ability, agility and dedication for the Indian Startups have been inculcating, incubating and innovating not only for the nation but for the humanity.
The minister said that with the motto of Connect, Collaborate and Catalyse, the Government has introduced initiatives like Startup Innovation Challenges, National Startup Awards, Ranking of States, SCO Startup Forum, Prarambh etc.
The online portal created by DPIIT, for the scheme, will allow incubators to apply for funds under it.
An Experts Advisory Committee (EAC) has been created by DPIIT to execute and monitor the Startup India Seed Fund Scheme.
Grants of up to Rs.5 Crores shall be provided to the eligible incubators selected by the EAC. The selected incubators shall provide grants of up to Rs.20 lakhs for validation of Proof of Concept, or prototype development, or product trials to startups.
Furthermore, investments of up to Rs.50 lakhs shall be provided to the startups for market entry, commercialization, or scaling up through convertible debentures or debt-linked instruments.
The promising startups that are supported at their early stages shall create huge employment opportunities for everyone.
The Seed Fund Scheme also envisions to promote virtual incubation for startups by enabling 300 incubators to support startups from all corners of the country. The impact of this will be visible by the spur of innovations in tier 2 and tier 3 regions of India, said the Ministry. #technology #investment #startup #fund #entrepreneurship /fiinews.com
