New Delhi, April 14, 2026: In a significant move to support India’s growing startup ecosystem, the Government of India has announced the Startup India Fund of Funds 2.0 (FoF 2.0) with a total corpus of ₹10,000 crore. The initiative aims to improve access to funding for startups and encourage innovation across the country.
This new fund builds on the success of the earlier Fund of Funds for Startups launched in 2016, which helped many startups secure investments through venture capital funds. With FoF 2.0, the government is now focusing on expanding support and strengthening the funding ecosystem for new and growing businesses.
What is Startup India FoF 2.0?
Instead of investing directly in startups, the government will invest in SEBI-registered Alternative Investment Funds (AIFs). These funds will further invest in startups, ensuring professional fund management and wider reach across different industries. The ₹10,000 crore corpus will be deployed in phases, which is expected to attract additional private investments into the startup ecosystem.
Focus Areas of Investment
The scheme will prioritise sectors that are important for India’s future growth. It will support deep tech startups working in areas like artificial intelligence and advanced technologies, along with early-stage startups that need capital to scale. The fund will also encourage technology-driven manufacturing businesses and innovative startups across various sectors, ensuring that a wide range of entrepreneurs benefit from this initiative.
How the Scheme Will Work
To ensure transparency and efficiency, a Venture Capital Investment Committee (VCIC) will be responsible for selecting eligible investment funds based on defined criteria. Alongside this, an Empowered Committee will monitor the performance and implementation of the scheme to ensure proper use of funds.
The Department for Promotion of Industry and Internal Trade will soon release detailed operational guidelines, which will provide further clarity on how the scheme will function.
SIDBI to Lead Execution
The Small Industries Development Bank of India has been appointed as the main implementation agency and will begin rolling out the scheme. The government may also appoint another agency to expand the reach and improve execution across regions.
Why This Matters for India
Startup India FoF 2.0 is expected to significantly boost innovation and entrepreneurship in the country. It will help create more job opportunities, support the growth of new technologies, and strengthen India’s manufacturing capabilities. By improving access to capital, the scheme will also encourage more entrepreneurs to bring their ideas to life.
Overall, this ₹10,000 crore initiative reflects the government’s continued commitment to building a strong startup ecosystem. It is a major step towards positioning India as a global innovation hub and achieving the vision of Viksit Bharat 2047.