E-YUVA Scheme: BIRAC’s Innovation Fellows (for post graduates and above) 2026

The Startup India Seed Fund Scheme (SISFS) offers financial support to early-stage startups for developing their ideas Read More... from concept to market entry, with a total fund of INR 945 Crore. Read less

Details

Are you an aspiring entrepreneur with a groundbreaking idea? The Indian government, through the Department for Promotion of Industry and Internal Trade (DPIIT), has launched a scheme to give your startup the crucial early-stage boost it needs. The Startup India Seed Fund Scheme (SISFS) is designed to help startups bring their innovative concepts to life, from the initial proof of concept to market launch and beyond.

What Is This Scheme?

Launched on April 19, 2021, the Startup India Seed Fund Scheme (SISFS) is a significant initiative with an outlay of ₹945 Crore. Its primary goal is to provide financial assistance to eligible startups. This funding is aimed at helping them validate their ideas (Proof of Concept), develop prototypes, test their products, enter the market, and commercialize their offerings. The funds are channeled to selected startups through a network of incubators across India, making it accessible nationwide.

Who Can Benefit From This Scheme?

This scheme is specifically for recognized startups that are in their nascent stages of development. If you have a technologically driven business idea with the potential for market fit, commercial viability, and scalability, this scheme could be for you. It's sector-agnostic, meaning it welcomes applications from a wide range of industries, with a preference for those offering innovative solutions in critical areas like social impact, environmental management, healthcare, and education.

Why This Scheme Is Important

The SISFS plays a vital role in bridging the funding gap for early-stage startups, which often struggle to secure capital. By providing grants and investment for key development stages, the scheme aims to nurture innovation, foster economic growth, and create employment opportunities. It empowers startups to reach a point where they can attract further investment from angel investors, venture capitalists, or secure loans from financial institutions, thus ensuring their long-term sustainability and success.

Objective

The Startup India Seed Fund Scheme (SISFS) offers financial support to early-stage startups for developing their ideas from concept to market entry, with a total fund of INR 945 Crore.

Benefits

BIRAC’s Innovation Fellows will receive fellowship grants and annual research grants as mentioned below:

Fellowship grant:

INR 30,000/- per month for Post-graduate fellow
INR 50,000/- per month for Post-doctoral fellow

Annual research grant:

INR 3,00,000/- per year for Post-graduate fellow
INR 5,00,000/- per year for Post-doctoral fellow

Note:EYCs and BIRAC provide continuous mentoring support to fellows, including but not limited to Technical Mentoring, IP Support, Legal Support, Networking, and Outreach, Training, Regulatory Advice, Business Mentoring and Fundraising.

Sources and references

Guidelines

Eligibility Criteria

Recognition: Your startup must be recognized by DPIIT.
Incorporation Age: It should have been incorporated no more than 2 years ago from the application date.
Business Idea: You need a business idea focused on developing a product or service that has market fit, is commercially viable, and has scope for scaling.
Technology Usage: Your startup should be using technology in its core product, service, business model, or distribution model to address a problem.
Previous Funding: You should not have received more than ₹10 Lakhs in monetary support from any other Central or State Government scheme. This exclusion does not apply to prize money, subsidized workspace, founder allowance, or access to labs/prototyping facilities.
Indian Promoter Share: Indian promoters must hold at least 51% shareholding in the startup at the time of application, as per the Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
Previous Seed Support: A startup can receive seed support in the form of grants and debt/convertible debentures only once each, as per the scheme guidelines.
Sector Preference: While the scheme is sector-agnostic, preference is given to startups creating innovative solutions in areas like social impact, waste management, water management, financial inclusion, education, agriculture, food processing, biotechnology, healthcare, energy, mobility, defense, space, railways, oil and gas, and textiles.

How To Apply

Visit the Portal: Eligible startups need to apply through the official Startup India portal. (Note: The specific portal link will be available and the 'Call for Applications' will be hosted here.)
Login: Use your existing credentials from your startup recognition process to log in.
Select Incubators: You can apply to up to 3 incubators simultaneously, based on your preference.
Submit Application: Fill in all the required details and upload necessary documents.
Evaluation: Your application will be evaluated by the Incubator Seed Management Committee (ISMC) of the chosen incubators.
Agreement: If selected, you will need to sign a legal agreement with the incubator before receiving the funds.
Fund Disbursement: Funds will be disbursed to your startup's company bank account based on achieved milestones.

Official Address for Reference:

Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, Government of India.

Official Link: While the specific application link for SISFS will be hosted on the Startup India portal, you can find more information at: Startup India Official Website

Documents Required

Board resolution or Authorization Letter/Power of Attorney (PoA)
PAN Card
GST Number
Aadhaar Card
Bank account details
Certificate of Incorporation or Partnership Deed
Financial statements
A video showcasing your startup, product, service, or business model
Any other relevant documents as requested by the incubator or scheme.

FAQ’s

What is the Startup India Seed Fund Scheme (SISFS)?

The SISFS is a government initiative that offers financial aid to eligible startups. It helps them cover costs for developing proof of concepts, creating prototypes, testing products, entering the market, and commercializing their business ideas.

How much money can a startup receive through this scheme?

Startups can get up to ₹20 Lakhs as a grant for early-stage development like proof of concept and prototyping. For market entry and scaling up, they can receive up to ₹50 Lakhs through debt or convertible debentures. Each startup can receive these two types of support once.

What is the eligibility period for incorporation of a startup?

A startup must be recognized by DPIIT and incorporated not more than 2 years ago at the time of applying for the scheme.

Can I apply if I'm an individual entrepreneur?

No, the scheme is exclusively for DPIIT-recognized startups. Individual entrepreneurs are not eligible to apply directly.

Are there any specific industries preferred for this scheme?

The scheme is sector-agnostic, meaning it supports startups from all industries. However, there is a preference for startups developing innovative solutions in sectors like social impact, waste management, water management, financial inclusion, education, agriculture, healthcare, and energy.

What is the role of incubators in this scheme?

Eligible startups apply through incubators. These incubators then evaluate applications, select startups, and disburse the seed funds. They also monitor the progress of the startups they support.

Can I apply to more than one incubator at the same time?

Yes, you have the option to apply to up to three different incubators simultaneously. This increases your chances of getting support from a relevant incubator.

What if my startup fails after receiving the funds? What are the liabilities?

The scheme acknowledges that not all startups succeed. The legal agreement with the incubator will outline provisions for failed ventures. Entrepreneurs will need to share their learnings and reasons for failure in a report along with the utilization certificate for the funds received.

Do I need to be physically present at the incubator's location?

Physical incubation is not mandatory. However, regular virtual or physical check-ins with the incubator are required for monitoring progress and receiving guidance.

How long does it typically take to process an application?

Incubators are expected to evaluate applications and select startups for seed funding within 45 days of receiving the application.

Can I track the status of my application?

Yes, once you submit your application, you can access a dashboard using your login credentials to track the real-time status of your application.

Is there any application fee for this scheme?

No, there is no application fee. Furthermore, selected startups are not charged any fees by the incubator or its staff during the selection, disbursement, or monitoring process.

What specific expenses can the seed fund cover?

The grant portion can be used for validating a Proof of Concept, developing a prototype, or product trials. The debt/convertible debenture portion is for market entry, commercialization, or scaling up. Funds cannot be used for creating facilities.

What if I am rejected? Can I reapply?

Yes, you can reapply to the SISFS three months after receiving a rejection. This period is intended for you to work on the feedback received and prepare for another application.

Will the living expenses of founders be covered if they are physically incubated?

While incubators provide physical infrastructure, support for development, and mentoring, other expenses like living expenses are the responsibility of the startup itself.

How soon will I get the first installment of the seed fund?

For grants, the first installment is typically released within 60 days of receiving the application. For debt or convertible debentures, similar timelines are aimed for, though due diligence might take longer.

How often do I need to report my progress after receiving funds?

Startups are required to connect with their incubator team and share updates at least once every 15 days via video conferences or physical meetings. These updates should also be logged on the scheme dashboard monthly. For milestone-based grants, interim progress updates and utilization certificates are needed for subsequent installments.

What happens if I decide not to proceed after being selected for the seed fund?

If you choose not to proceed, you need to write a letter stating your reasons. If funds have not been received, you can cancel your application via the dashboard. If funds have been received, you will need to return them within 15 days and then cancel your application.

Who reviews my application?

Your application is reviewed by an Incubator Seed Management Committee (ISMC) formed by the incubator you apply to. This committee includes incubator nominees, government representatives, venture capitalists, industry experts, and successful entrepreneurs.

Can I change the preference order of incubators after submitting my application?

No, once an application is submitted, the preference order of the incubators cannot be changed.