In a move that endeavors to foster growth and development in the startup sector, Union minister of Commerce and Industry Piyush Goyal has launched the 'Startup India Seed Fund Scheme' (SISFS). This will be in force for a period of four years.
The objective of this scheme is to establish a structure that provide monetary benefits to eligible startups for proof of concept, prototype development, product trials, market entry and commercialization.
An amount of 945 crore rupees corpus will be decided over the next 4 years for providing seed funding to eligible startups through eligible incubators across the country. The scheme is expected to support an estimated 3,600 startups through 300 incubators.
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.