Government Notifies Rs 10,000 Cr Startup India Fund of Funds 2.0

In a major push to strengthen India’s startup ecosystem, the Government of India has notified the ₹10,000 crore Startup India Fund of Funds (FoF 2.0), aimed at supporting deep-tech startups, early growth-stage ventures, and technology-driven manufacturing companies.

The initiative builds on the earlier Fund of Funds for Startups (FFS 1.0), launched in 2016 under the Startup India programme.

Under this model, the government does not invest directly in startups. Instead, it channels capital through SEBI-registered Alternative Investment Funds (AIFs), which then invest in startups. The first fund has already supported over 1,370 startups, helping attract private investment and expand access to capital.

FoF 2.0 will follow the same structure but with a sharper focus on sectors critical to India’s future growth. The ₹10,000 crore corpus will be deployed across 4 key segments like deep-tech sectors, micro VCs, technology-driven manufacturing ventures, and sector-agnostic funds for broader opportunities.

The government will also introduce detailed guidelines for fund selection, monitoring, and capital deployment. The Department for Promotion of Industry and Internal Trade (DPIIT) will oversee implementation, supported by a high-level committee.

With FoF 2.0, the government aims to attract more private investment, strengthen the venture capital ecosystem, and help startups scale sustainably.