The government has launched the operational guidelines for the ₹10,000 crore Startup India Fund of Funds 2.0 to strengthen funding access and boost private investment in the startup ecosystem.
The Government of India has introduced the operational framework for the ₹10,000 crore Startup India Fund of Funds 2.0, aimed at strengthening capital access and encouraging private investment in the country’s startup ecosystem.
The initiative has been rolled out by the Department for Promotion of Industry and Internal Trade under the Ministry of Commerce and Industry. It is designed to improve the efficiency of fund deployment and support startups across different sectors and growth stages.
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Under the new structure, investments will be channelled through SEBI-registered Category I and Category II Alternative Investment Funds (AIFs), which will further invest in DPIIT-recognised startups. The model is intended to ensure disciplined capital allocation while increasing participation from private investors.
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The Small Industries Development Bank of India (SIDBI) has been appointed as the initial implementation agency to manage selection and monitoring of AIFs. The government also plans to include an additional implementation partner to expand coverage and sectoral expertise.
The scheme introduces a segmented approach for different types of funds, including deep-tech, early-stage micro venture capital, manufacturing-focused innovation funds, and sector-agnostic investment pools. Each category has defined parameters for corpus size, tenure, and private capital requirements.
A two-stage evaluation process has also been established for fund selection, involving initial screening by the implementation agency followed by assessment from a Venture Capital Investment Committee.
The scheme is expected to act as a multiplier for startup funding by mandating private participation and encouraging market-driven investment decisions. It also allows part of the returns to be used for ecosystem development, including mentorship, infrastructure, and capacity building.
Published: 25 Apr 2026, 08:28 pm IST
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