Lok Sabha Question No. 2428 (UNSTARRED), answered on 2024-12-10
Subject: Implementation of Start-up India Seed Fund Scheme
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Mani A

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 2428.

TO BE ANSWERED ON TUESDAY, THE 10 TH  DECEMBER, 2024.

## IMPLEMENTATION OF START-UP INDIA SEED FUND SCHEME

## 2428.  SHRI MANI A:

## Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) the details of current status of the implementation of the Start-up India Seed Fund Scheme, and the number of start-ups that have benefited from it so far;
- (b) the details of steps taken by the Government to ensure that start-ups in rural and semi-urban areas also benefit from the Start-up India Seed Fund Scheme;
- (c) the number of start-ups that have received financial support under the Start-up India Seed Fund Scheme since its inception;
- (d) the details of measures that have been taken by the Government to promote women entrepreneurs under the Start-up India Seed Fund Scheme;
- (e) the number of jobs that have been created directly or indirectly as a result of the Start-up India Seed Fund Scheme; and
- (f) the details of the major challenges faced in the implementation of the Startup India Seed Fund Scheme and the manner in which the Government addressing them and if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a)  to  (c): The Startup India Seed Fund Scheme (SISFS) has been approved for the period of 4 years starting from 2021-22 with a corpus of Rs. 945 crore. The Scheme provides financial assistance to eligible startups for proof of concept, prototype development, product trials, market entry and commercialization. The  Experts  Advisory  Committee  (EAC)  of  SISFS,  evaluates  and  selects incubators for allocation of funds. The approved incubators select startups in accordance with the guidelines. SISFS is implemented from 1st April 2021.

As  on  31st  October  2024,  213  incubators  have  been  selected  under  the Scheme with a total approved funding of Rs 902.74 crore and the approved incubators have selected 2,490 startups for support under SISFS.

The  Government  is  undertaking  several  measures  to  ensure  that  startups across the country including from rural and semi-urban areas benefit from the Startup India Seed Fund Scheme (SISFS). These include capacity building and handholding workshops  to  promote  the  Scheme  and  encourage incubators to apply for the same. Efforts are also undertaken to handhold the incubators and startups, especially from non-metros, to navigate the application and for both pre and post-application compliances. The Government  also  launched  a  digital  portal  for  implementation  of  SISFS (https://seedfund.startupindia.gov.in/) which enables ease of accessibility for entrepreneurs and startups from all parts of the country. Benefits provided under SISFS are also propagated through various social media platforms.

- (d): SISFS is inclusive and encourages all eligible startups to apply for funding under the Scheme and benefit from the Scheme. As on 31 st  October 2024, out of the total 2,490 startups selected by the incubators for funding under the Scheme, 1,278 of these startups have at least one-woman director.
- (e): As on 31st October 2024, more than 16,000 direct jobs (self-reported) have been created by beneficiary startups supported by approved incubators under the Startup India Seed Fund Scheme.
- (f): SISFS was launched as a flagship sector-agnostic Scheme under the Startup India  initiative  to  provide  financial  assistance  to  startups  in  early  stages  of growth. To address certain aspects of accessibility, adoption, awareness, and capacity building during the course of implementation of the Scheme, several steps have been undertaken by the Government which has resulted in better adoption of the Scheme. Details of such considerations and key steps taken by  the  Government  for  implementation  of  the  Scheme  are  placed  as Annexure-I.

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## ANNEXURE-I

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (f)  OF  THE  LOK  SABHA UNSTARRED QUESTION NO. 2428 FOR ANSWER ON 10.12.2024.

Details  of  steps  undertaken  under  SISFS  to  increase  accessibility,  awareness,  and adoption of the Scheme as well as facilitate capacity building:

## 1. Accessibility

Startup  India  Seed  Fund  Scheme  was  launched  as  a  sector-agnostic  initiative aimed at supporting startups in their early stages of growth. To realise this objective and ensure participation from across the country, it was important to make the Scheme  well  accessible  and  easier  to  navigate  for  the  stakeholders.  For  this purpose, SISFS portal (https://seedfund.startupindia.gov.in/) was developed with an easy-to-use interface enabling digital implementation of the Scheme.

## 2. Awareness and Adoption

One of the important aspects of the Scheme is mobilization of seed stage capital for  startups  situated  beyond  metropolitan  cities.  For  achieving  this  outreach, comprehensive  measures  have  been  undertaken,  encompassing  extensive workshops and handholding of stakeholders, including one-to-one connects with incubators and startups wherever needed. The benefits under the Scheme are also propagated in various other national programs and events organised under the Startup India initiative complemented with social media outreach.

## 3. Capacity Building

A number of beneficiaries under the Scheme are potential early-stage beneficiaries,  including  budding  entrepreneurs  and  emerging  incubators.  This called  for  dedicated  efforts  on  capacity  building  of  the  ecosystem  at  large. Specifically for incubators, it involves capability to provide funding, to monitor the progress of startups and to support startups through various stages of development. For startups, capacity building involves aspects such as exposure to international,  national  and  regional  programs  for  their  holistic  development including  development  of  business  proposals,  pitching,  product  development, market access, etc.

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