Government Launches ₹10,000 Cr Startup India Fund of Funds 2.0

The Government of India has officially notified the Startup India Fund of Funds 2.0 (FoF 2.0), with a total corpus of ₹10,000 crore aimed at mobilizing venture and growth capital for the country’s startup ecosystem. The scheme builds upon the success of the Fund of Funds for Startups (FFS 1.0) launched in 2016 under the Startup India Action Plan.

Key Features of Startup India FoF 2.0

• Corpus Size: ₹10,000 crore, spread across the 16th and 17th Finance Commission cycles
• Focus Areas: Deep tech startups, early growth stage startups supported by smaller AIFs, technology-driven and innovative manufacturing ventures, and sector/stage agnostic startups
• Selection Process: Screening by a Venture Capital Investment Committee (VCIC) comprising veterans from the startup ecosystem
• Oversight: An Empowered Committee (EC) will monitor implementation and performance
• Co-Investment Framework: Provisions for joint investments by Government and institutional investors with governance safeguards

Implementation

• Primary Agency: Small Industries Development Bank of India (SIDBI)
• Additional Agency: Another domestic implementation agency to be selected
• Investment Route: Contributions to SEBI-registered Alternative Investment Funds (AIFs) investing in entities recognized as startups by the Central Government

Strategic Impact

• Innovation: Strengthens India’s innovation-led growth agenda
• Manufacturing: Boosts technology-driven manufacturing capabilities
• Employment: Generates high-quality jobs
• Global Positioning: Positions India as a global innovation hub

Aligned with the national vision of Viksit Bharat @ 2047, FoF 2.0 represents the Government’s continued commitment to empowering entrepreneurs, fostering innovation, and unlocking the full potential of India’s startup ecosystem.

Notification

The official notification is available on the e-Gazette portal: View Notification