New Delhi: The Central government has notified the Startup India Fund of Funds 2.0 (FoF 2.0) with a total corpus of Rs 10,000 crore to mobilise venture and growth capital for the country’s startup ecosystem.
The new fund builds on the performance of the earlier Fund of Funds for Startups launched in 2016 under the Startup India Action Plan to address funding gaps and promote domestic capital for startups.
Startup India FoF 2.0 will deploy Rs 10,000 crore through commitments to eligible Alternative Investment Funds across the 16th and 17th Finance Commission cycles.
The investments will target priority areas such as deep-tech startups, early growth-stage ventures supported by smaller funds, technology-driven manufacturing startups, and other innovation-led businesses, according to an official statement.
The scheme will follow a structured selection process for Alternative Investment Funds through a Venture Capital Investment Committee comprising experienced members from the startup ecosystem. It will include monitoring and oversight mechanisms, while an Empowered Committee will track implementation and performance. Provisions for co-investment by the Government and institutional investors have also been incorporated under a defined framework.
The Department for Promotion of Industry and Internal Trade will issue operational guidelines and details on the composition of the Venture Capital Investment Committee.
The government said the scheme is expected to strengthen innovation-led growth by supporting startups developing globally competitive technologies and products. It is also aimed at enhancing economic resilience, boosting manufacturing, and generating high-quality employment.
The Small Industries Development Bank of India will act as the implementation agency and begin operationalisation of the scheme from the date of notification. Another domestic agency will also be selected to support implementation.
The fund will contribute to SEBI-registered Alternative Investment Funds for investment in entities recognised as startups by the Central government.
The initiative aligns with the broader vision of Viksit Bharat 2047 and reflects the government’s continued focus on fostering entrepreneurship and innovation in the country.
