Prelims: Current events of national and international importance| Economic and Social Development.
Why in news?
Recently Delhi police arrested two persons who exploited the SAMRIDH scheme by making false representations to obtain government funds.
- SAMRIDH - Start-up Accelerator of MeitY for Product Innovation, Development, and Growth.
- Goal - It aims to support IT based start-ups through accelerator to scale for solving India’s problems creating positive social impact.
- A start-up accelerator is a mentor-based program that provides guidance, support and limited funding in exchange for equity.
Incubators focus more on the longevity of a start-up and are less concerned with how quickly the company grows but accelerators focus on rapid growth, have fixed timeframes, and help start-ups attract investment and scale their operations.
- Nodal ministry – Ministry of Electronics & IT (MeitY)
- Implementing agency – MeitY Start-up Hub (MSH)
As per the research by MIT Sloan, around 50% of the Start-ups fail by 4th year of their inception.
Key Features
- Bridging the funding gap – It address the gap between prototype stage and commercialization.
- Once a Start-up gains traction, there is a gap in accessing the growth stage funding to scale up the operations.
- Funding support and fiscal incentives - Equal matching investment by accelerator/investor up to ₹40 lakh government investment per start-up.
- Support for proven concepts – It provides start-ups which already have brilliant solutions and proof of concept for their product, better facilities to enhance their product using innovative technologies for the market with a solid business plan.
- Accelerator support system – It supports existing and upcoming Accelerators to select and accelerate potential IT based start-ups to scale for solving India's problems creating positive social impact.
- Platform for growth – It provides start-ups with a platform to enhance their products and secure investments for scaling their business.
Reference
- MeitY| SAMRIDH
- The Hindustan Times| Two cheat MeitY using SAMRIDH scheme
