APPLICATION FOR SEED FUNDING

1. Introduction

Seed Funding refers to the initial financial support provided to early-stage start-ups or innovation-driven enterprises to help them develop prototypes, conduct research, validate ideas, or launch pilot versions of their products/services. It is typically provided by government schemes, incubators, angel investors, venture funds, or Start-up India Seed Fund Scheme (SISFS).

2. Purpose of Seed Funding

Seed funding is aimed at supporting:

• Product development
• Prototype development and testing
• Market research & validation
• Business model development
• Technology upgradation
• MVP (Minimum Viable Product) creation
• Early-stage operations and team building

3. Eligibility Criteria

Depending on the scheme/incubator, general eligibility includes:

1. Entity must be a Private Limited Company / LLP / Registered Start-up.
2. Should be DPIIT-recognized Start-up (for SISFS and similar schemes).
3. Business must be innovation-driven and technology-based.
4. The start-up should be less than 2 or 5 years (varies by scheme).
5. Must not have received more than a defined amount of funding earlier.
6. Should have a well-defined business plan or prototype.

4. Documents Required for Seed Funding Application

1. Certificate of Incorporation
2. DPIIT Start-up Recognition Certificate (if applicable)
3. Founders’ KYC (PAN, Aadhaar)
4. Pitch Deck
5. Business Plan / Project Report
6. Financial Projections (3–5 years)
7. Bank Details / Cancelled Cheque
8. Prototype images / website link / demo video
9. Shareholding pattern
10. Previous funding details (if any)
11. Innovation write-up
12. Market analysis & revenue model

5. Key Components of a Strong Seed Funding Application

• Problem Statement:
  Clear description of the problem your product/service solves.
• Innovation & Uniqueness:
  What makes your solution innovative or different from competitors?
• Prototype Stage:
  Current development progress—MVP, prototype, sample, or demo version.
• Target Market:
  Size, audience, demand, and potential growth opportunities.
• Business & Revenue Model:
  How the start-up plans to earn revenue and sustain growth.
• Financial Requirement:
  Precise requirement of seed funding and how it will be used (break-up).
• Team Profile:
  Experience and qualifications of the founders and core team members.

6. Broad Process of Applying for Seed Funding

1. Identify suitable schemes or incubators offering seed funding.
2. Prepare required documents—pitch deck, innovation write-up, projections.
3. Apply online through the portal or incubator website.
4. Upload required documents and fill the seed funding application form.
5. Screening by committee or incubator experts.
6. Pitch presentation / personal interview.
7. Approval and signing of funding agreement.
8. Release of funds in stages (milestone-based).

7. Government Schemes for Seed Funding

1. DPIIT – Start-up India Seed Fund Scheme (SISFS)
2. MSME Idea Innovation Scheme
3. BIOS – Biotechnology Ignition Grant (BIG)
4. Startup Bengal / Startup Odisha / State Startup Schemes
5. Technology Development Board (TDB) Support
6. Incubator-based seed funding schemes (TIH, TBI, NIDHI-PRAYAS, etc.)

8. Advantages of Seed Funding

• Helps start-ups develop prototypes without financial pressure
• Reduces early-stage financial risk
• Enables market validation and pilot testing
• Improves chances of future venture capital or angel investment
• Provides mentorship, incubation, and networking support
• Helps build core team and infrastructure

9. Common Reasons for Rejection

• Weak explanation of innovation
• Unclear financial planning
• Lack of prototype or proof of concept
• Unorganised pitch deck
• Unrealistic revenue projections
• Poor team structure
• Copying or non-unique business idea

10. Conclusion

A strong seed funding application requires clarity of innovation, solid business model, realistic financial planning, and a compelling pitch. Start-up founders must prepare all documents professionally and ensure their prototype and market potential are clearly demonstrated to secure government or private seed funding.