NEW DELHI — The central government on Monday announced the launch of the Startup India Fund of Funds 2.0, a ₹10,000 crore initiative aimed at expanding access to capital and strengthening the country’s startup ecosystem.
The new fund builds on the earlier Fund of Funds for Startups launched in 2016 under the Startup India Action Plan, which was designed to bridge funding gaps and encourage domestic investment in emerging businesses.
Under the updated program, the ₹10,000 crore corpus will be deployed through investments in eligible Alternative Investment Funds over the 16th and 17th Finance Commission cycles. These funds will, in turn, invest in startups recognized by the government.
Officials said the initiative is expected to improve access to venture and growth capital, particularly for high-potential and emerging segments of the startup ecosystem.
The fund will prioritize sectors such as deep technology, early-stage growth companies backed by smaller investment funds, and technology-driven manufacturing ventures. At the same time, it will maintain a broad-based approach by supporting startups across sectors and stages.
A structured selection process has been put in place to identify eligible investment funds. A Venture Capital Investment Committee, made up of experienced members from the startup ecosystem, will oversee the screening process.
An Empowered Committee will be established to monitor the implementation and performance of the scheme.
The framework also allows for co-investment by the government and institutional investors, with safeguards in place to ensure transparency and proper governance.
The Department for Promotion of Industry and Internal Trade is expected to issue detailed operational guidelines, including the composition of the investment committee.
The Small Industries Development Bank of India has been designated as the primary implementation agency and will begin operationalizing the scheme immediately. The government is also considering appointing an additional domestic agency to support execution.
Through the fund, the government aims to channel capital into SEBI-registered investment funds, which will then back startups across the country, helping drive innovation and long-term economic growth. (Source: IANS)
