Govt launches Rs 10,000 crore ‘Startup India FoF 2.0’ to boost innovation ecosystem
The Centre on Monday notified the Startup India Fund of Funds 2.0 (FoF 2.0), announcing a fresh corpus of Rs 10,000 crore aimed at boosting venture and growth capital availability for startups across the country.
IANS
Apr 13, 2026 10:55
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New Delhi, April 13 (IANS) The Centre on Monday notified the Startup India Fund of Funds 2.0 (FoF 2.0), announcing a fresh corpus of Rs 10,000 crore aimed at boosting venture and growth capital availability for startups across the country.
The move builds on the performance of the earlier Fund of Funds for Startups (FFS 1.0), which was launched in 2016 under the Startup India Action Plan to bridge funding gaps and catalyse domestic capital in the startup ecosystem.
Under the new scheme, the Rs 10,000 crore corpus will be deployed through commitments to eligible Alternative Investment Funds (AIFs) over the 16th and 17th Finance Commission cycles.
The government expects the initiative to deepen capital access, especially for emerging and high-potential segments of the startup ecosystem.
The fund will prioritise investments in sectors such as deep technology, early growth-stage startups backed by smaller AIFs, and technology-driven and innovative manufacturing ventures.
It will also support sector-agnostic and stage-agnostic startups, ensuring a broad-based approach to funding innovation.
A structured selection mechanism has been put in place for choosing AIFs. A Venture Capital Investment Committee (VCIC), comprising experienced members from the startup ecosystem, will oversee the screening process.
In addition, an Empowered Committee (EC) will be constituted to monitor the scheme’s implementation and performance.
The framework also includes provisions for co-investment by the government and institutional investors, with safeguards to ensure proper governance.
The Department for Promotion of Industry and Internal Trade (DPIIT) will issue detailed operational guidelines, including the composition of the VCIC, in due course.
The Small Industries Development Bank of India (SIDBI) has been designated as the primary Implementation Agency and will begin operationalising the scheme from the date of notification.
The government also plans to appoint another domestic implementation agency to support execution.
Through FoF 2.0, the government will contribute to the corpus of SEBI-registered AIFs, which in turn will invest in startups recognised by the Centre.
--IANS
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