GUSEC:
Startup India Seed Fund Scheme (SISFS)
Financial assistance to early-stage startups for proof of concept, prototype development, product trials, market-entry, and commercialization scaling.
Scheme Overview
The Startup India Seed Fund Scheme (SISFS) was launched by Department for Promotion of Industry and Internal Trade (DPIIT) to provide financial assistance to early-stage startups.
Seed funding under SISFS acts as a critical bridge for startups to validate their concepts, build prototypes, conduct market trials, and secure initial commercial traction before raising larger venture capital funding.
Financial Support Structure
Startups receive capital disbursed via selected DPIIT-incubators in two primary funding tracks:
Grant Funding
Non-dilutive grant disbursed for validation of proof of concept, prototype development, or product trials.
Debt / Convertible Notes
Investment via convertible debentures, debt, or debt-linked instruments for market entry and scaling.
Eligibility Requirements
- Startup must be recognized by DPIIT and incorporated not more than 2 years prior to application.
- Startup must have a business idea to develop a product or service with a clear market fit and scalable potential.
- The startup should be using technology as a core component of its business model.
- Startup should not have received more than ₹10 Lakhs of monetary support under any other Central/State Govt scheme.
- Indian promoters must hold at least 51% shareholding at the time of application to incubator.