The Union government has unveiled the Startup India Fund of Funds 2.0 with a corpus of ₹10,000 crore to bolster funding access for early-stage and deep‑tech ventures, stimulate technology‑driven manufacturing and attract private capital into India’s startup ecosystem.
Fund structure and purpose
FoF 2.0 will follow the established fund‑of‑funds model: the government will invest in SEBI‑registered Alternative Investment Funds (AIFs), which in turn will deploy capital into startups. The phased disbursement of the ₹10,000 crore corpus is intended to catalyse additional private investment and leverage professional fund management for broader sectoral reach.
Priority sectors and beneficiaries
The scheme prioritises deep‑tech areas such as artificial intelligence and advanced technologies, alongside early‑stage enterprises that require growth capital. It also seeks to support technology‑led manufacturing and innovative startups across industry verticals, ensuring a wide range of entrepreneurs can access institutional funding.
Implementation and governance
A Venture Capital Investment Committee (VCIC) will evaluate and select eligible AIFs against predefined criteria to ensure transparent and merit‑based allocation. An Empowered Committee will oversee scheme performance and implementation to maintain accountability and monitor outcomes.
The Department for Promotion of Industry and Internal Trade (DPIIT) will publish detailed operational guidelines to clarify eligibility, selection processes and compliance requirements for participating funds and start‑ups.
Executing agencies
The Small Industries Development Bank of India (SIDBI) has been appointed as the nodal implementation agency tasked with rolling out the scheme. The government may designate additional agencies to expand geographic reach and strengthen execution capabilities across states and regions.
Policy context and expected impact
FoF 2.0 builds on the original Fund of Funds for Startups launched in 2016, which channelled governmental capital into venture vehicles and helped numerous Indian startups scale. By improving access to institutional capital, the new programme aims to accelerate innovation, generate employment and bolster India’s manufacturing and technology ambitions.
Officials view the ₹10,000 crore initiative as a strategic step toward positioning India as a global innovation hub and supporting the country’s longer‑term economic goals, including the Viksit Bharat 2047 vision.
