Commerce Ministry notifies Rs 945 crore seed fund for startups

• Start-up India Seed Fund Scheme (SISFS) will provide financial assistance to start-ups for proof of concept, prototype development, product trials, market entry and commercialisation.

About:

• It was announced recently at ‘Prarambh: Startup India International summit’.

• Scheme will be implemented by Department for Promotion of Industry and Internal Trade (DPIIT) under Ministry of Commerce.

• SISFS will support startups across all sectors. Funds will be disbursed through selected incubators across India in 2021-25.

• Preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, financial inclusion, education, food processing, biotechnology, healthcare, space etc.

Other Initiatives for Startup funding:

• A National Seed Fund was announced in Budget 2020-21 to support ideation and development of early-stage start-ups.

• Fund of Funds for Startups, with a corpus of Rs. 10,000, was created under Start-up India scheme and is managed by Small Industries Development Bank of India.

• Venture capital scheme, Multiplier grants scheme, MUDRA Yojana etc.

• India is home to the world’s third largest startup ecosystem which has helped several budding entrepreneurs to come up with innovative technologies and become big corporations.

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Mains Paper 3: Economy

Prelims level: Start-up India Seed Fund Scheme

Mains level: About the scheme and its implications

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