The scheme aims to provide financial backing to startups for crucial stages like developing a proof of concept, creating prototypes, testing products, entering markets, and for commercialization efforts. The funds are channelled through selected incubators.

Yes, but there are stricter conditions. If an incubator hasn't received government assistance, it must have been operational for at least three years, host a minimum of 10 startups physically, and present audited annual reports for the past two years.

Startups can receive up to ₹20 Lakhs as a grant for validating their concept, developing a prototype, or for product trials. Additionally, they can get up to ₹50 Lakhs as investment through convertible debentures, debt, or debt-linked instruments for market entry, commercialization, or scaling up. A startup can avail both types of support once.

The incubator has three years from the first installment to fully utilize the grant. If at least 50% of the commitment isn't used within the first two years, the incubator loses eligibility for further funds and must return all unutilized money with interest. Interest earned on any unused funds will be adjusted with future releases.

Each incubator forms an Incubator Seed Management Committee (ISMC) with experts. This committee is responsible for evaluating and selecting startups for seed funding. The Experts Advisory Committee (EAC) approves the ISMC's composition.

No, absolutely not. A startup selected for assistance under this scheme will not be charged any fees by the incubator or its staff, whether in cash or in kind, for any part of the process.

The grant is disbursed to selected incubators in milestone-based installments. The first installment can be up to 40% of the total approved amount. Subsequent installments are released after the incubator proves that milestones have been achieved.

Interest will be charged on unutilized funds and adjusted at the time of the next release. If the incubator doesn't use at least 50% of the total commitment in two years, it must return all unused funds with interest. The EAC can also discontinue support if performance is poor.

The EAC, formed by DPIIT, evaluates and selects incubators for seed funds. It also monitors their progress and ensures efficient utilization of funds to achieve the scheme's objectives. The EAC convenes at least quarterly.

Yes, an incubator can reapply for funds under the scheme once they have disbursed or committed the entire grant previously released to them.

Each selected incubator must open a dedicated Trust and Retention Account (TRA) in a nationalized bank for the project. They are responsible for the proper management and disbursement of the Seed Fund to startups.

For funding through convertible debentures, debt, or debt-linked instruments, the interest rate should not exceed the prevailing repo rate. The tenure is typically up to 60 months (5 years) with a potential moratorium of up to 12 months. This funding is unsecured.

Incubators must provide real-time progress updates of their selected startups through their online dashboards. They also need to present this information to the EAC on a quarterly basis, along with reports on investment returns, funds disbursed, and audited expenditure for each financial year.

An incubator can withdraw. If they have been selected but haven't received the first tranche, they can cancel their application via their dashboard after submitting a withdrawal letter. If they've received the first tranche, they must return the disbursed funds with interest within 15 days.

The ISMC at each incubator is responsible for the evaluation and selection of startups. The process includes reviewing applications, shortlisting candidates, and presentations before the ISMC. All applications received are shared online with the respective incubators.

The 5% management fee is for the incubator's administrative expenses, including selecting and doing due diligence on startups, and monitoring their progress. It's not meant for facility creation or other administrative overheads.

Startups can apply through an ongoing online call for applications on the Startup India portal. They can choose up to three incubators they prefer to apply to. The applications are then shared with these incubators for evaluation.

Yes, a startup applicant can apply to up to three incubators simultaneously, listing them in order of preference.

Any net return from a beneficiary startup (including principal, interest, and profits) can be used by the incubator for further funding of startups as per the scheme's guidelines. If it's not used for funding startups within three years, it must be returned to DPIIT.

Selected startups are required to connect with the incubator team and share updates at least once every 15 days, either through video conferences or physical meetings. These updates must be logged on the scheme dashboard monthly.