December 15, 2021
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Startup support schemes expand private investment and procurement access for startups through fund channels and regulatory relaxations.
The Government supports startup growth through two financing mechanisms: the Fund of Funds for Startups (FFS), administered via SIDBI to back SEBI registered AIFs that invest in startups through equity instruments, and the Startup India Seed Fund Scheme (SISFS), which channels seed funding to startups via approved incubators; alongside regulatory and procurement reforms-permitting institutional investment into AIFs, relaxing prior turnover and experience criteria for tenders, waiving earnest money deposits, and creating a dedicated GeM procurement channel for startups.