Government Notifies Startup India FoF 2.0 | 14 Apr 2026

Source: PIB

Recently, the government notified Startup India Fund of Funds (FoF) 2.0 with a ₹10,000 crore corpus to mobilise capital for startups and strengthen India’s innovation ecosystem.

• Background: It builds on the earlier Fund of Funds for Startups (FFS 1.0, 2016) under the Startup India Action Plan to address funding gaps.
• Objective: To catalyse domestic capital and support startups across key sectors, especially where private funding remains limited.
• Key Features: The fund will invest in SEBI-registered Alternative Investment Funds (AIFs), which in turn invest in startups. 
  • It follows a segmented approach focusing on deep tech, early-stage, innovative manufacturing, and technology-driven startups. 
  • It also provides higher contribution for capital-intensive sectors and flexibility for larger corpus and longer-duration AIFs.
• Implementation Agency: SIDBI (Small Industries Development Bank of India) will operationalise the scheme with provision for an additional implementing agency.
• Governance Structure: Selection of AIFs will be undertaken by a Venture Capital Investment Committee (VCIC), with monitoring and oversight by an Empowered Committee (EC).
• Time Frame: Investments will be spread across 16th and 17th Finance Commission cycles.
• Significance: The scheme acts as an umbrella framework for co-investment by government and institutional investors, and includes provisions for ecosystem support such as capacity building, mentorship, and regulatory assistance.