Start-up India Seed Fund Scheme (SISFS)

Why in news?

• Union commerce minister formally unveiled a Start-up India Seed Fund Scheme (SISFS).

About the scheme:

• Startup India Seed Fund Scheme (SISFS) will handhold and financially support early-stage startups across 300 incubation centres.
• The fund is expected to benefit around 3,600 startups and boost the startup ecosystem, particularly in tier-2 and 3 cities.
• The fund aims to provide financial assistance to startups for proof of concept, prototype development, product trials and market entry.
• SISFS will “secure seed funding, inspire innovation, support transformative ideas, facilitate implementation and start a startup revolution".
• The scheme will create a robust startup ecosystem, particularly in non-metros, which are often deprived of adequate funding.
• Grants of up to ?5 crore shall be provided to eligible incubators selected by an expert committee.
• They shall be offered grants of up to ?20 lakh for validation of proof of concept, prototype development or product trials.
• Furthermore, investments of up to ?50 lakh shall be provided to startups for market entry, commercialization or scaling up through convertible debentures or debt-linked instruments.

Prelims Question

Consider the following statements regarding Startup India Seed Fund Scheme:
1.It will primarily help start-ups in target tier-1 city.
2.Financial grants under the scheme will be funded entirely by private sector.
Which of the statements given above is/are correct?
(a)1 only
(b)2 only
(c)Both 1 and 2
(d)Neither 1 nor 2

Answer to the Prelims Question