Several innovative business ideas fail due to inadequate critical capital requirements at an early stage for prototype development, proof of concept, market-entry, product trials and commercialisation. The capital required by the startups at the stage of developing the proof of concept often makes or breaks a situation for startups with good business ideas. The startup ecosystem in India generally suffers from capital inadequacy in the proof of concept development stage. The seed fund will enable the startups to seek loans from commercial banks or financial institutions or raise investments from angel investors or venture capitalists. It will support approximately 3,600 entrepreneurs through 300 incubators in the next four years, i.e. The SISFS provides seed funding to eligible startups through incubators across India for developing proof of concept. Thus, it is necessary to provide seed funding to the startups in India having an innovative idea to conduct proof of concept trials. Similarly, banks offer loans to asset-backed startups. ![]() ![]() The funding from the venture capital firms and angel investors is available to startups only after providing their proof of concept. After the approval from the Hon’ble Finance Minister and the Expenditure Finance Committee (EFC), the DPIIT notified this scheme on 21st January 2021. ![]() Narendra Modi announced the SISFS scheme on 16th January 2021. The Department for Promotion of Industry and Internal Trade (DPIIT) created the Startup India Seed Fund Scheme (SISFS) with an outlay of Rs.945 crore to provide financial assistance to the startups for prototype development, proof of concept, market-entry, product trials, and commercialisation.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |