In a major push to strengthen India’s startup ecosystem, the government has notified the Startup India Fund of Funds 2.0 (FoF 2.0) with a corpus of ₹10,000 crore, aimed at mobilising capital and supporting emerging businesses across the country.

Building on the success of the earlier Fund of Funds for Startups (FFS 1.0) launched in 2016, the new initiative seeks to address funding gaps and ensure that startups—especially in high-potential sectors—have better access to growth capital.

Unlike direct funding models, the scheme will invest in SEBI-registered Alternative Investment Funds (AIFs), which in turn will support startups. This approach allows capital to flow more efficiently into the ecosystem while leveraging the expertise of professional fund managers.

The focus of FoF 2.0 will be on priority areas such as deep-tech innovation, early-stage startups, and technology-driven manufacturing. At the same time, it will remain flexible enough to support startups across sectors and growth stages.

To ensure transparency and effective allocation of funds, the scheme will follow a structured selection process. A Venture Capital Investment Committee (VCIC), comprising experts from the startup ecosystem, will evaluate proposals, while an Empowered Committee will monitor implementation and performance.

The Small Industries Development Bank of India (SIDBI) will act as the main implementation agency, with plans to onboard another domestic agency to further strengthen execution.

Officials say the initiative is not just about funding—it is about building a stronger foundation for innovation in India. By supporting startups that develop globally competitive technologies and solutions, the scheme is expected to generate jobs, boost manufacturing, and enhance the country’s economic resilience.

Aligned with the vision of Viksit Bharat @ 2047, the Startup India Fund of Funds 2.0 reflects the government’s continued commitment to empowering entrepreneurs and positioning India as a global innovation hub.

As startups continue to play a key role in shaping the future economy, this fund aims to ensure that promising ideas are not held back by lack of capital, but are given the support needed to grow and succeed.

The notification is available at the following link: https://egazette.gov.in/WriteReadData/2026/271764.pdf

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