Â 1. The Seed Fund will be disbursed to eligible startups through eligible incubators across India.
Â 2. Criteria:
Â a. A startup, recognized by DPIIT, incorporated not more than 2 years ago at the time of application.
b. The startup must have a business idea to develop a product or a service with a market fit, viableÂ commercialization, and scope of scaling.
c. The startup should be using technology in its core product or service, or business model, or distribution model, or methodology to solve the problem being targeted.
d. Preference would be given to startups creating innovative solutions in sectors such as social impact, waste management, water management, financial inclusion, education, agriculture, foodÂ processing, biotechnology, healthcare, energy, mobility, defence, space, railways, oil and gas, textiles, etc.
e. Startups should not have received more than Rs 10 lakh of monetary support under any other Central or State Government scheme. This does not include prize money from competitions and grand challenges, subsidized working space, founder monthly allowance, access to labs, or access to prototyping facility.
f. Shareholding by Indian promoters in the startup should be at least 51% at the time of applicationÂ to an incubator for the scheme, as per Companies Act, 2013 and SEBI (ICDR) Regulations, 2018.
g. Any startup will not receive seed support more than once.
Â 3. The Seed Fund to an eligible startup by the incubator shall be disbursed up to Rs. 20 Lakhs as a grantÂ for validation of Proof of Concept, or prototype development, or product trials. The grant shall beÂ disbursed in milestone-based installments. These milestones can be related to the development of a prototype, product testing, building a product ready for market launch, etc, and Up to Rs. 50 Lakhs of investment for market entry, commercialization, or scaling up through convertible debentures or debt or debt-linked instruments.