Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
Startup India Seed Fund Scheme:
Context:
The Startup India Seed Fund Scheme (SISFS) has been launched.
About the Startup seed fund:
- The Fund aims to provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.
- 945 Crore corpus will be divided over the next 4 years for providing seed funding to eligible startups through eligible incubators across India.
- The scheme is expected to support an estimated 3,600 startups through 300 incubators.
- Nodal Department: Department for Promotion of Industry and Internal Trade.
Significance:
- The SISFS will Secure seed funding, Inspire innovation, Support transformative ideas, Facilitate implementation, and Start startup revolution.
- The Scheme will create a robust startup ecosystem, particularly in Tier 2 and Tier 3 towns of India, which are often deprived of adequate funding.
Need for the scheme:
- Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise.
- Funding from angel investors and venture capital firms becomes available to startups only after the proof of concept has been provided. Similarly, banks provide loans only to asset-backed applicants.
- It is essential to provide seed funding to startups with an innovative idea to conduct proof of concept trials.
InstaLinks:
Prelims Link:
- What is Startup India scheme?
- About the Startup India Seed Fund Scheme (SISFS).
- Eligibility.
- Benefits.
Mains Link:
Discuss the significance of the Startup India Seed Fund Scheme (SISFS).
Sources: PIB.
