The government notified Startup India FoF 2.0 with a ?10,000 crore corpus to mobilise venture capital for deep tech, early growth-stage, and innovative manufacturing startups, with SIDBI as implementation agency.
NEW DELHI – The Government has notified the Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a total corpus of ?10,000 crore, aimed at mobilising venture and growth capital for the country's startup ecosystem. The scheme will focus on deep tech, early growth-stage, and innovative manufacturing startups.
Startup India FoF 2.0 builds upon the strong performance of the Fund of Funds for Startups (FFS 1.0), which was launched in 2016 under the Startup India Action Plan to address funding gaps and catalyse domestic capital for startups. The new scheme will have a total corpus of ?10,000 crore for commitments to eligible Alternative Investment Funds (AIFs) spread across the 16th and 17th Finance Commission cycles.
Investments under Startup India FoF 2.0 will focus on AIFs supporting priority segments, including deep tech startups, early growth-stage startups supported by smaller AIFs, technology-driven and innovative manufacturing startups, and sector or stage agnostic startups.
The scheme will follow a structured selection process for AIFs involving screening by a Venture Capital Investment Committee (VCIC) comprising veterans from the startup ecosystem. Robust monitoring and oversight mechanisms have been incorporated, and an Empowered Committee (EC) will be constituted to monitor implementation and performance. Provisions for co-investment by the government and institutional investors under an umbrella framework with appropriate governance safeguards have also been included. The operational guidelines and composition of the VCIC will be issued by the Department for Promotion of Industry and Internal Trade (DPIIT).
The Small Industries Development Bank of India (SIDBI) will commence operationalisation of the scheme as the Implementation Agency (IA) with effect from the date of notification. In addition, another domestic implementation agency will also be selected to implement the scheme. Startup India FoF 2.0 will contribute to the corpus of SEBI-registered AIFs for investing in entities recognised as startups by the Central Government.
Startup India FoF 2.0 is expected to play a critical role in advancing India's innovation-led growth agenda. By supporting startups that build globally competitive technologies, products, and solutions, the scheme is aimed at strengthening India's economic resilience, boosting manufacturing capabilities, generating high-quality jobs, and positioning India as a global innovation hub. The fund is aligned with the national vision of Viksit Bharat @ 2047 and represents the government's continued commitment to empowering entrepreneurs, fostering innovation, and unlocking the full potential of India's startup ecosystem.
