Seed investment, as the name implies, is capital for a business at the seedling stage, i.e., genesis, ideation, or the starting stage. Every entrepreneur must grasp what seed money is and why it is necessary for establishing their firms. Let us investigate the complexities of seed funding.
It frequently refers to the first formal funds raised by a company or organisation. It helps a company’s early financing needs for brand development and market research studies. Prospective investors in a seed fundraising scenario include entrepreneurs, friends, venture capital companies, family, incubators, and others.
An “angel investor” is one of the most well-known investors in startup capital. Angel investors often favour riskier ventures (such as startups with no past track record) and expect to receive an ownership stake in the company in exchange for their investment.
The goal of the Scheme
To provide financial assistance to entrepreneurs for concept validation, model creation, product testing, market entry, and commercialization.
The Department for Promotion of Industry and Internal Trade (DPIIT) commissioned it with an investment of about Rs 900 crore rupees.
Some prerequisites for eligibility
A DPIIT-recognized startup that had only been in operation for two years when the application was filed.
On Startup India Scheme an individual should not have received more than Rs. 10 lakh in financial support under any other programme administered by the Central or State Government.
Key Features of the Scheme
It will help 4000 entrepreneurs over the next four years through 350 incubators.
DPIIT has created an Experts Advisory Committee (EAC) to monitor the Scheme’s overall administration and oversight.
The committee will award money to approved incubators worth up to Rs. 5 crore.
The chosen incubators will provide grants of up to Rs. 20 lakh to businesses to validate proof of concept, model development, or product testing.
Investments of up to Rs. 50 lakh will be made available to firms through convertible debentures or debt-linked instruments for market entry, commercialization, or scaling up.
Because smaller cities in India typically lack appropriate capital, it would contribute to the development of a robust startup ecosystem in Tier 2 and Tier 3 places.
Startup Initiative in India
It intends to build a robust startup ecosystem in the country in order to stimulate innovation and give chances to ambitious company owners. That year, it made its debut.
Initiatives Associated with the Government
Startup Innovation Challenges: This is a fantastic opportunity for entrepreneurs to maximise their connections and fundraising efforts.
The National Startup Competition: These are intended to recognise and reward excellent entrepreneurs and ecosystem builders while also stimulating economic vitality via innovation and competition.
States’ Aid to Startup Ecosystems Listed in order of: It is a sophisticated evaluation tool aimed to boost State and UT aid for the overall growth of specific startup ecosystems.
SCO Startup Conference: The Shanghai Cooperation Organization (SCO) will host its first-ever Startup Forum in October 2020 to collaboratively establish and improve startup ecosystems.
Prarambh: The “Prambh” Summit aims to provide a forum for enterprises and young people from all over the world to propose new ideas, inventions, and breakthroughs.