The Indian startup ecosystem suffers from capital inadequacy in the seed and ‘Proof of Concept’ development stage. The capital required at this stage often presents a make-or-break situation for startups with good business ideas.
Many innovative business ideas fail to take off due to the absence of this critical capital required at an early stage for proof of concept, prototype development, product trials, market entry, and commercialisation. Seed Funds offered to such promising cases can have a multiplier effect in the validation of business ideas of many startups, leading to employment generation.
1. Up to Rs. 20 Lakhs as a grant for validation of Proof of Concept, prototype development, or product trials. The grant shall be disbursed in milestone-based instalments.
These milestones can be related to the development of prototypes, product testing, building a product ready for market launch, etc.
2. Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments
3. A startup applicant can avail of seed support in the form of a grant or debt/convertible debentures each once as per the guidelines of the scheme