Page 40 - MSME BULLETIN 2022 NEW LAYOUT 19082022.indd

MSME & START-UP BULLETIN, VOLUME 1, ISSUE 1, AUGUST 2022

Funding from angel investors and venture capital 3 years.
fi rms becomes available to startups only after the proof
of concept has been provided. Similarly, banks provide Through this scheme a platform will be provided
loans only to asset-backed applicants. It is essential to to startups so that they can enhance their product and
provide seed funding to startups with an innovative idea secure investment in order to scale their business. The
to conduct proof of concept trials. existing and upcoming accelerators will be provided
support for extending their services. The government
Department for Promotion of Industry and Internal provides a funding upto Rs.40 lakh to startups under
Trade (DPIIT) has created SISFS with an outlay of this scheme according to their current valuation and
Rs.945 crore to provide fi nancial assistance to startups growth stage through accelerators.
for proof of concept, prototype development, product
trials, market entry, and commercialisation. It will MeitY Startup Hub (MSH) act as implementing
support an estimated 3,600 entrepreneurs through agency for the scheme. It will take equity in startups for
300 incubators in the next 4 years. The fund will be the government’s contribution via SAFE/Promissory
disbursed to eligible startups through eligible incubators Note, just like an accelerator.
across India.
The accelerators are invited to apply online to become
The objective is to ensure smooth fl ow of funds so partners with MeitY and provide a startup accelerator
as to avoid: programme of 6 months every year.

 Country’s startup ecosystem suffers from capital Multiplier Grant Scheme (MSG)
inadequacy in the seed and ‘Proof of Concept’ This is initiated by Department of Electronics and
development stage. Information Technology (DeitY). The scheme aims
to empower collaborative research and development
 Capital required at this stage often presents a (R&D) among industry and institutions/academics for
make or break situation for startups with good the development of products and packages. The aim is
business ideas. to close the gap between R&D and proof-of-concept
as well as globalisation and commercialisation. It
 Many innovative business ideas fail to take off helps to boost the growth of indigenous goods and
due to the absence of this critical capital required services and makes it happen faster.
at an early stage for proof of concept, prototype
development, product trials, market entry and Government grants would be limited to a maximum
commercialization. sum of Rs.2 crore per project, and the duration of each
project could be considerably less than two years. This
 Fund offered to such promising cases can have will go up to Rs.4 crore and include three years of
a multiplier effect in validation of business industry association.
ideas of many startups, leading to employment
generation. Market-oriented R&D would be prioritised
in academic and government R&D institutions.
 Government has allocated Rs.283.5 crore for Additionally, this would increase the importance of
during 2022-23 under the scheme. education and training in meeting market demands. The
industry’s ability to mobilise technological know-how
SAMRIDH scheme and capabilities would be enhanced.
This is designed to enhance the startup accelerator
ecosystem in the country. It is launched by Ministry The outcome is:
of Electronics, Information, and Technology (MeitY)
which helps startups with development, growth, and The sector would be able to respond quickly to market
product innovation. It is designed to provide funding demands in terms of cost-competitive indigenous new
support to startups along with helping them bring skill products.
sets together that will help them grow successfully.
The initiative aims to accelerate around 300 tech Incentives in the form of royalty sharing could help
startups through about 40 cohorts by providing them universities and government R&D labs recruit and
with investor connect, customer connect, and other retain talented staff.
opportunities for global expansion in the upcoming A surge in the number of entrepreneurs may result

40 The Institute of Cost Accountants of India