Policy · Financial Services

India launches ₹10,000 crore Startup India Fund of Funds 2.0

By Startup Enthusiast · 14 April 2026

What they do

The government created a new ₹10,000 crore fund to support startups across India

SIDBI manages the money by investing in other funds that back early-stage companies

This program builds on previous efforts that helped over 1,370 startups since 2016

The Indian government has officially notified the ₹10,000 crore Startup India Fund of Funds 2.0.
This initiative serves as a major upgrade to the earlier Fund of Funds Scheme launched in 2016.
The Small Industries Development Bank of India will manage the corpus under the Department for Promotion of Industry and Internal Trade.
The fund operates by investing in SEBI-registered Alternative Investment Funds rather than direct startups.
These registered funds then deploy capital into startups using equity and equity-linked instruments.
A high-level committee chaired by the DPIIT Secretary will oversee the implementation process.
Operational guidelines covering eligibility and monitoring are expected to be released soon.
The scheme aims to crowd in private capital and address funding gaps for capital-intensive ventures.

The original scheme supported over 1,370 startups since its operational launch in 2016.
The new structure targets specific segments like deep-tech and micro venture capital firms.
It seeks to strengthen the venture capital ecosystem for sustainable scaling of Indian businesses.
The focus includes advanced sectors such as semiconductors and space technology.

The fund invests through four distinct segments to diversify startup support.
The deep-tech segment focuses on AI, space-tech, semiconductors, and advanced computing.
Micro VCs receive backing to support early growth-stage startups effectively.
Tech-driven manufacturing encourages domestic production using advanced technological solutions.
Sector-agnostic funds provide flexibility to explore emerging opportunities across various industries.
The model relies on intermediary funds to select and monitor portfolio companies.
Investment committees determine structures for disbursal and ongoing monitoring of funds.
The approach addresses specific funding gaps for capital-intensive startup requirements.

Operational guidelines will cover eligibility criteria and fund selection processes.
The oversight committee will establish monitoring and disbursal mechanisms.
The fund will begin deploying capital through registered alternative investment funds.

Small Industries Development Bank of India (SIDBI) (manager) — Manages the fund operations and investments on behalf of the government.