Funding Schemes for New Startups

📌 Purpose: Support proof of concept, prototype development, product trials, market entry & commercialization.
📌 Corpus: ₹945 crore (2021–25) via incubators nationwide.
📌 How it works: Funds are distributed through accredited incubators that select and support eligible startups.
📌 Funding quantum: Up to ~₹20 lakh (grant) for early proof-of-concept; up to ~₹50 lakh via convertible debentures or debt-linked instruments for commercialization or scaling.
📌 Eligibility: DPIIT-recognised startups, typically early stage with innovative products, ideas, or services.

📌 Purpose: Increase availability of capital across startup lifecycle, from seed to growth stage.
📌 Corpus: ₹10,000 crore managed by SIDBI.
📌 How it works: The government does not invest directly in startups — instead SIDBI allocates funds to SEBI-registered Alternative Investment Funds (AIFs) that then invest directly in startups.
📌 Benefit: Helps startups access venture capital and institutional funding through daughter funds.
📌 Eligibility: Startups raised funds through partner AIFs.

📌 Purpose: Enable collateral-free loans to startups by providing credit guarantees to lenders.
📌 Coverage: Guarantee against loan exposure — recently expanded to cover up to ~₹20 crore per borrower in many cases.
📌 How it works: Startups take loans from banks/NBFCs; lenders apply for guarantee cover from National Credit Guarantee Trustee Company (NCGTC).
📌 Eligibility: DPIIT-recognised startups with viable business plans. 

There are multiple sector-specific, innovation-focused funding schemes beyond Startup India, often offering grants or non-dilutive support — especially valuable for tech, biotech, electronics, etc.:

• By: Department of Science & Technology
   
• Funding: Up to ₹10 lakh for prototype development & validation.
   
• Focus: Early idea to proof of concept.
   
• Apply via designated NIDHI centres.
   

👉 Great for deep tech / product innovation projects. 

• By: Ministry of Electronics & IT
   
• Supports startups in IoT, AI, blockchain, cybersecurity, electronics hardware with funding and incubation.
   
• Disbursed through accredited incubators.
   

👉 Useful for tech and digital product startups. 

• By: Biotechnology Industry Research Assistance Council 
• Funding: Up to ~₹50 lakh for biotech/biopharma/medtech innovations. 
• Supports translational research. 
• Apply through BIRAC portal. 

👉 Ideal for biotech/product innovation startups. 

• Supports incubation, innovation labs, and startup mentoring.
• Funds Atal Incubation Centres that in turn support startups. 
• Provides mentorship, networking & sometimes seed funding.

In addition to Startup India, the startup ecosystem can leverage other general government loan schemes that also benefit new companies:

Collateral-free business loans up to ₹10 lakh (Shishu/Kishore/Tarun) for micro/early businesses. 

Loans ₹10 lakh to ₹1 crore for women and SC/ST entrepreneurs, often collateral-free or with support from CGTMSE. 

Subsidized loans for manufacturing/service startups with partial capital subsidy. 

Enables collateral-free credit up to ₹5 crore for MSMEs/startup businesses, reducing personal guarantees.