/ciol/media/agency_attachments/c0E28gS06GM3VmrXNw5G.png)
Follow Us/ciol/media/post_banners/wp-content/uploads/2021/01/Startup-Guide.jpg)
Indian PM Narendra Modi interacted with startups and addressed ‘Prarambh: Startup India International Summit’ on January 16. In the event, that marked 5th anniversary of StartUp India, he announced a 1000 crore Startup India seed fund. He said that the Startup India seed fund will enable new entrepreneurs to start and grew their startups. Further, with the fund of one thousand crore rupees, there will not be a shortage of seed money for startups, he said. The Seed Fund Scheme will provide financial assistance to startups for Proof of Concept, prototype development, product trials, market-entry, and commercialization.
He also said that the fund of funds scheme already helps startups to raise equity capital. Further, the Government will also help startups in raising capital through guarantees. Outlining his vision, he said that India aims for a startup ecosystem on the mantra ‘Of the Youth, By the Youth, For the Youth’. “We have to fix our goals for the next five years. These goals should be that our startups, our unicorns should emerge as global giants; lead in the futuristic technologies,” he concluded.
How to enrol yourself for the 1000 Cr Seed fund?
PM Modi added, “Easy availability of capital is essential for entrepreneurs at the early stages of growth of an enterprise. Thus, startups can avail the Seed Fund through selected incubators across India. Rs 945 Crore has been allocated for the scheme for 2021-25.”
Startup India Seed Fund Scheme shall offer Rs 20 Lakhs to startups as a grant for Proof of Concept. They can also avail another 30 lakhs through convertible debentures or debt or debt-linked instruments for commercialization. The fund will, further, provide financial assistance to startups for Proof of Concept, prototype development, product trials, market-entry, and commercialization.
Thus, to receive the fund, you will have to register yourself on Startup India platform. After that, in selected incubators, you can apply for the seed fund with relevant documents.