Having easy access to financing is critical for entrepreneurs in the early phases of their business's development. Startups can only get funding from angel investors and venture capital firms when they have demonstrated their concept. Similarly, banks only lend to applicants who have assets to back up their claims. Seed capital is critical for firms with new ideas to undergo proof of concept trials.
The Seed-Fund will be distributed to qualifying entrepreneurs through incubators throughout India.
Many new business concepts fail to take off because they lack the necessary funding for proof of concept, prototype development, product trials, market entry, and commercialization at an early stage.
Seed funding provided to such promising cases might have a multiplier effect, resulting in the validation of many company ideas and the creation of jobs.
