The Government has notified Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a total corpus of ₹10,000 crore to mobilise venture and growth capital for India’s startup ecosystem. The scheme builds on the earlier Fund of Funds for Startups (FFS 1.0), launched in 2016 under the Startup India Action Plan to bridge funding gaps and catalyse domestic capital for startups.
Scheme Objective
Startup India FoF 2.0 aims to strengthen access to capital for recognised startups through commitments to eligible Alternative Investment Funds (AIFs). The fund will support investment activity across the 16th and 17th Finance Commission cycles. It is designed to deepen the domestic startup financing ecosystem and reduce dependence on foreign capital.
Priority Investment Areas
Investments under the scheme will focus on AIFs supporting:
- Deep tech startups.
- Early growth stage startups backed by smaller AIFs.
- Technology-driven and innovative manufacturing startups.
- Sector-agnostic and stage-agnostic startups.
The scheme is intended to support enterprises that can develop globally competitive technologies, products, and solutions.
Implementation and Governance
The Small Industries Development Bank of India (SIDBI) will act as the Implementation Agency from the date of notification. Another domestic Implementation Agency will also be selected. The Department for Promotion of Industry and Internal Trade (DPIIT) will issue the operational guidelines and define the composition of the Venture Capital Investment Committee (VCIC).
Monitoring and Strategic Significance
A structured selection process for AIFs will be followed through screening by the VCIC. An Empowered Committee will monitor implementation and performance. The scheme also provides for co-investment by the Government and institutional investors under a governance framework with safeguards. Startup India FoF 2.0 is aligned with the vision of Viksit Bharat @ 2047 and is expected to boost innovation, manufacturing capability, quality employment, and India’s position as a global innovation hub.
Last Modified: April 27, 2026