ROLE OF SEED FUNDING FOR STARTUPS IN BIHAR: AVAILABILITY, ACCESSIBILITY, CHALLENGES, AND INSTITUTIONAL FRAMEWORKSE AND HOSPITAL

Abstract

• Seed funding plays a pivotal role in nurturing early-stage startups by providing the initial capital required to transform innovative ideas into viable business ventures. In Bihar, where the startup ecosystem is still developing, seed funding assumes even greater significance given the socio-economic constraints, infrastructural challenges, and limited access to formal finance. This study presents a critical analysis of the state of seed funding for startups in Bihar, examining the availability, accessibility, challenges, and institutional frameworks surrounding early-stage financing. The research explores government-led initiatives such as the Startup Bihar Policy 2022 and the role of academic incubators, along with barriers including risk-averse investor attitudes, lack of angel networks, poor digital infrastructure, and social stigmas around entrepreneurship.

  Despite commendable policy efforts and sporadic success stories, the penetration and impact of seed funding remain inadequate, especially in rural and semi-urban regions. The paper also highlights the gender gap in funding accessibility and the exclusion of marginalized innovators from funding pipelines. The findings emphasize the need for a holistic ecosystem that combines financial, infrastructural, educational, and mentorship support to ensure the effective utilization of seed capital in the region. The conclusion calls for integrated strategies involving public-private partnerships, financial literacy programs, and regional innovation hubs to strengthen the foundation for entrepreneurial growth in Bihar.