Startup India Seed Fund Scheme- For Startups (2024)

Application Procedure:

Step 01: An online call for applications shall be hosted on an ongoing basis on the Startup India portal.

Step 03: On the home page, click on the ‘Apply Now’ button and proceed with ‘Apply Now’ for startups.

Step 04: The startup can login using the credentials used during the startup recognition process to apply for the scheme and submit the application form.

Step 05: Applicants can apply for seed funds to any three incubators selected as disbursing partners for this scheme in order of their preference.

Note 01: The application submission is completely online, and no physical submission of documents is required.

Note 02: All applications received will be shared online with respective incubators for further evaluation.

Note 03: The applicant may be asked to submit details on the team profile, problem statement, product/service overview, business model, customer profile, market size, quantum of funds needed, projected utilization plan for funds, etc.

Note 04: There are no application fees for the scheme. Even after the selection of a startup by an incubator for assistance under this scheme, the startup shall not be charged any fees. The incubator or any of its staff members shall not charge any fee in cash or in kind from applicants or beneficiaries under the scheme for any process of selection, disbursem*nt, incubation, or monitoring.

Selection of Startups:

1. Each of the incubators applying for the Startup India Seed Fund Scheme will constitute a committee called the Incubator Seed Management Committee (ISMC), consisting of experts who can evaluate and select startups for seed support. The composition of ISMC would be as follows:

•Nominee of Incubator (Chairman)

•Representative from the State Government’s Startup Nodal Team

•Representative of a Venture Capital Fund or Angel Network

•A domain expert from Industry

•A domain expert from academia

•Two Successful Entrepreneurs

•Any other relevant Stakeholder

The final composition and members of ISMC of each incubator shall be approved by EAC and will be a critical parameter in the selection of incubators

2. The startups shall be selected through an open, transparent, and fair process, comprising, inter-alia:

a) Eligible applications will be evaluated by ISMC using the following criteria:

•Need for this Idea: Market size, market gap filling, solving a real-world problem

•Feasibility: Feasibility and reasonability of the technical claims, methodology used/ to be used for PoC and validation, and roadmap for product development.

•Potential Impact: Customer demographic & the technology’s effect on these, national importance (if any)

•Novelty: USP of the technology, associated IP

•Team: Strength of the team, Technical and business expertise

•Fund Utilization Plan: Roadmap of money utilization

•Additional Parameters: Any additional parameters considered appropriate by the incubator

•Presentation: Overall assessment

b)The incubator may shortlist applicants based on their evaluation for a presentation before ISMC

c)ISMC shall evaluate applicants based on their submissions and presentations and select startups for Seed Fund within 45 days of receipt of the application

d) All incubators shall provide information about the progress of the evaluation of startups in real-time to the Startup India portal

e)Selected startups shall receive seed funding under the respective incubator that selects them as beneficiaries as per their preference shared during application (for example, if incubators at Preference 1 and Preference 2 both select a startup, the funding shall be given by Preference 1 incubator. If the Preference 1 incubator rejects and the Preference 2 incubator selects, the funding shall be given by the incubator at Preference 2, and so on.)

f)All applicants will be able to track the progress of their application on the Startup India portal on a real-time basis

g) Applicants who are rejected will also be notified through email

h)An applicant, if rejected once, may apply afresh