New Delhi: The government has notified the Startup India Fund of Funds 2.0 (FoF 2.0) with a ₹10,000 crore corpus to boost venture and growth capital for startups.
Building on the 2016 Fund of Funds for Startups (FFS 1.0), the scheme aims to address funding gaps and strengthen domestic investment. The corpus will be deployed through commitments to eligible SEBI-registered Alternative Investment Funds (AIFs) across the 16th and 17th Finance Commission cycles.
FoF 2.0 will prioritise deep-tech, early growth-stage, and technology-driven manufacturing startups, while remaining sector-agnostic. A structured selection process—led by a Venture Capital Investment Committee (VCIC)—and oversight by an Empowered Committee will ensure governance and performance monitoring. Provisions for co-investment with government and institutional investors are also included.
Operational guidelines 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 implementing agency, with another domestic agency to be appointed.
The scheme is expected to drive innovation-led growth, strengthen manufacturing, generate high-quality jobs, and position India as a global startup hub, in line with the Viksit Bharat @ 2047 vision.