In the early stages of the development of their business, entrepreneurs need to have easy access to capital. Angel investors and venture capital firms will only fund startups when they have proven their concept. In a similar vein, banks only make loans to applicants who can prove their claims with assets. For businesses with innovative ideas to go through proof of concept trials, seed money is essential. Through incubators across India, the Seed-Fund will be disbursed to entrepreneurs who meet the eligibility requirements.

Lack of capital for early-stage proof of concept, prototype development, product trials, market entry, and commercialization causes many new business ideas to fizzle out.

Such promising situations receiving seed money could have a multiplier effect, validating numerous companies.