Top Government Funds for Startups in 2023

Government funding plays a crucial role in supporting the growth and development of startups across various sectors. In 2023, several government initiatives and schemes are available to provide financial assistance and support to startups in India.

Startup India Seed Fund Scheme (SISFS)

During the early stage of its business proceedings, a competitively new company can face significant fiscal challenges when it comes to producing prototypes for its final products or running a trial for the same. To ensure a startup can seamlessly conduct these aforementioned ventures from the outset of its market entry, the government launched the SISF scheme. As per the guidelines of this policy, a business can receive up to ₹20 lakh rupees for its research and development measures.

Startup India Initiative

This govt funding for startups applies to private limited enterprises, LLPs, and registered partnership firms of this country. As a result, the scheme has so far recognized around 50,000 businesses to be eligible for the benefits provided by this initiative. In simpler terms, the primary target of this scheme is to reduce financial burdens on small businesses by safeguarding them from the cascading effects of taxation. Therefore, companies under the purview of this scheme can enjoy significant tax exemptions while also getting a chance to enroll in courses and mentorship programmes which can pave the way for sustainable development.

ASPIRE

An acronym for A Scheme for Promotion of Innovation, Rural Industries and Entrepreneurship, (ASPIRE) is an initiative by the government of India aims to help entrepreneurs become large-scale employers. As a way to strengthen the countryside economic status of this nation, ASPIRE has taken pivotal steps to establish technological and incubation centres throughout rural India for MSMEs. A larger portion of this country’s overall fiscal capabilities depends on its agricultural output capacity. Therefore, this govt fund for startups encourages newer inventions in the field of AgriTech via substantial grants to cover the expenditures required for plant and machinery.

Venture Capital Assistance Scheme (VCA)

The VCA was launched by government bodies to ensure a startup can secure substantial working capital without falling into a debt trap that can hinder its future aspects. With a ceiling of ₹50 lakh as the maximum amount providable as a loan, govt fund for startups scheme primarily caters to the agri-business industry. It ensures that a zero-interest line of credit is available for the entrepreneurs of the farming sectors from the financial institutions of India for a longer repayment window.

Other Government Funds for Startups

Pradhan Mantri Mudra Yojana (PMMY)
Qualcomm Semiconductor Mentorship Program (QSMP)
ATAL Innovation Mission
Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
Single Point Registration Scheme
Modified Special Incentive Package Scheme (M-SIPS)
Zero Defect Zero Effect (ZED) Certification Scheme
Design Clinic Scheme for Design Expertise
Dairy Entrepreneurship Development Scheme
Credit Linked Capital Subsidy for Technology Upgradation