Start-Up India Seed Fund Scheme – A Road Map for Start-Up Funding in India

As defined in our previous White Paper on Smart Guide to Start-ups, Start-up is a newly established business, which is incorporated with the intention of developing new products or services through the use of innovation. Now, for the survival and growth of Start-ups in India easy availability of capital/funds is essential. However, angel investors and venture capital firms provide funds to those Start-ups only, who provide "proof of concept", which becomes impossible for the budding Start-ups to present without financial backing. Similarly, banks also provide loans only to Start-ups having assets. It is a vicious cycle. Therefore, in order to support Start-ups, the Ministry of Commerce and Industry introduced Start-up India Seed Fund Scheme ("SISFS"). The Government of India released an official announcement approving SISFS on 05.02.2021, for the duration of four years w.e.f. from 01.04.2021.