New Delhi, Apr 20 (KNN) Union Commerce and Industry Minister Piyush Goyal has formally launched the Startup India Seed Fund Scheme (SISFS) to financially support early-stage startups across 300 incubation centres.

According to the commerce ministry, the fund is expected to benefit around 3,600 startups and boost the startup ecosystem, particularly in tier-2 and 3 cities. The fund aims to provide financial assistance to startups for proof of concept, prototype development, product trials and market entry. A sum of Rs 945 crore has been allocated for the fund.

Speaking on the occasion, on Monday, Goyal said that this scheme is being launched within 3 months of its announcement, one of the fastest in recent times. He said that times are tough, but our resolve is strong, and never before has it become more important for us to empower our startups.

''SISFS will Secure seed funding, inspire innovation, support transformative ideas, facilitate implementation, and Start startup revolution, he added.

The Minister said that he would like to especially encourage innovators from rural areas to come forward and benefit from this scheme.

Goyal said that under the guidance of Prime Minister Narendra Modi, DPIIT has worked tirelessly to bring a tectonic shift in the startup ecosystem in India. He assured that the department has been acting as the Facilitator, with Open door, Open Arms & Open Mind, encouraging largescale youth participation in the innovative activities.

The minister said that there has been change in approach, change in mindset from jobseekers to job providers, which is helping Startups to become the backbone of New India.

''Startup India Seed Fund Scheme will act as a bridge between ideas and their implementation. Independent & ambitious thinking in the Startup ecosystem will encourage entrepreneurship and create a culture that will recognise innovation,'' he said.

The online portal created by DPIIT, for the scheme, will allow incubators to apply for funds under it. An Experts Advisory Committee (EAC) has been created by DPIIT to execute and monitor the Startup India Seed Fund Scheme, a statement from the commerce ministry said.

"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. The detailed guidelines of the Startup India Seed Fund Scheme are provided on the Startup India portal (www.startupindia.gov.in)."