ISB gets awarded with Rs 5 crore under ‘Startup India Seed Fund’ scheme

Capital inadequacy in the seed and ‘proof of concept’ development stage is one of the foremost reasons making the Indian startup ecosystem suffer.

The Indian School of Business‘s DLabs Incubator has received an award of a whopping amount of 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. Under the ‘Startup India Seed Fund Scheme’ startups get to graduate to a level from where they can raise investments from angel investors or venture capitalists or seek loans from commercial banks or financial institutions. The scheme enables ISB’s Dlabs Incubator Association to facilitate the allotment of seed funds to eligible early-stage startups. These startups can use the funds for financial assistance to startups for proof of concept,

Capital inadequacy in the seed and ‘proof of concept’ development stage is one of the foremost reasons making the Indian startup ecosystem suffer. The requirement of capital at this stage often presents a make-or-break situation for startups with good business ideas.

According to Indian Express, Bhagwan Chowdhry, faculty director, ISB DLabs, said, “Many good ideas do not see the light of the day because they could not get early-stage funding. This grant will help us fix it”.

Many innovative and attractive business ideas fail due to the inadequacy of funds in startups at an early stage for proof of concept, prototype development, product trials, market entry, and commercialisation. Seed fund offered to such promising cases can help them thrive and have a multiplier effect in validating the business ideas of many startups, leading to employment generation.

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