NS be itDLabs Incubator has been awarded Rs 5 crore under the ‘Startup India Seed Fund Scheme’ by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, Government of India.
The ‘Startup India Seed Fund Scheme’ will enable startups to grow to a level where they will be able to raise investments from angel investors or venture capitalists or take loans from commercial banks or financial institutions. Under this scheme, the Dlabs Incubator Association of ISB will facilitate the allocation of seed funds to eligible early stage startups. This fund will be used to finance startups for proof of concept, prototype development, product trials, market entry and commercialization.
The Indian startup ecosystem suffers from inadequacy of capital in the seed and ‘proof of concept’ development stage. The capital required at this stage often presents a make-or-break situation for startups with good business ideas.
Many innovative business ideas fail due to the absence of this critical capital required at the initial stage for proof of concept, prototype development, product testing, market-penetration and commercialization. Seed funding for such promising cases can have a multiplier effect in validating the business ideas of many startups, which can lead to employment generation.
Bhagwan Choudhary, Faculty Director, ISB DLabs said, “Many good ideas don’t come in broad daylight as they were not funded in the initial phase. This grant will help us fix it.”