New Delhi, April 13: The Government has notified the Startup India Fund of Funds 2.0 (Startup India FoF 2.0), a ₹10,000 crore initiative aimed at mobilising venture capital and growth funding for the country’s startup ecosystem, particularly in emerging and innovation-driven sectors.
According to an official notification issued on Monday, the scheme builds on the performance of the original Fund of Funds for Startups (FFS 1.0), launched in 2016 under the Startup India Action Plan to address funding gaps and encourage domestic capital participation in the startup sector.
The revised framework will operate with a total corpus of ₹10,000 crore, to be committed across eligible Alternative Investment Funds (AIFs) during the 16th and 17th Finance Commission cycles. These funds will, in turn, invest in startups recognised by the Central Government.
The scheme will prioritise investments in deep-tech ventures, early growth-stage startups supported by smaller AIFs, technology-driven and innovative manufacturing enterprises, as well as sector-agnostic startups with high growth potential.
Officials said the Startup India FoF 2.0 has been designed to strengthen innovation-led economic growth by supporting startups that develop globally competitive technologies, products and solutions, while also contributing to job creation, manufacturing capacity, and economic resilience.
A structured selection process will be followed for identifying eligible AIFs. This will include screening by a Venture Capital Investment Committee (VCIC) comprising experienced professionals from the startup ecosystem. An Empowered Committee (EC) will also oversee implementation, monitoring, and performance evaluation of the scheme.
The government has also incorporated provisions for co-investment by government and institutional investors under a unified framework, supported by governance safeguards to ensure transparency and accountability. Detailed operational guidelines and the 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 act as the initial Implementation Agency for the scheme, while another domestic implementation agency will also be appointed to support execution.
Officials said the Startup India FoF 2.0 is aligned with the vision of Viksit Bharat @ 2047 and reflects the government’s continued focus on fostering entrepreneurship, innovation, and a globally competitive startup ecosystem.
The official notification is available on the government e-Gazette portal.
Just researching this unique trend and your analysis on blouse styles is incredible.
Thanks for the insight!