Why in the news?

• Recently the Minister of Railways, Commerce & Industry, Consumer Affairs and Food & Public Distribution launched the Startup India Seed Fund Scheme (SISFS). 
• The Scheme was announced during the ‘Prarambh: StartupIndia International Summit’, marking the five-year anniversary of the Startup India initiative

About the scheme

Aim:

• To provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.

Features 

• The scheme is expected to support an estimated 3,600 eligible startups through 300 eligible incubators in 4 years with an outlay of Rs.945 crore.
• The SISFS will Secure seed funding, Inspire innovation, Support transformative ideas, Facilitate implementation, and Start startup revolution. 
• 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.  
• An Experts Advisory Committee (EAC) has been created by DPIIT to execute and monitor the Startup India Seed Fund Scheme. 
• Grants of upto Rs 5 Crores shall be provided to the eligible incubators selected by the EAC. 
• The selected incubators shall provide grants of up to Rs 20 lakhs for validation of Proof of Concept, or prototype development, or product trials to startups. 
• Furthermore, investments of up to Rs 50 lakhs shall be provided to the startups for market entry, commercialization, or scaling up through convertible debentures or debt-linked instruments.