STARTUP INDIA FUND OF FUNDS 2.0

NEWs: Recently, the Union Cabinet approved Startup India Fund of Funds 2.0

ABOUT- Fund of Funds 2.0

• Under the broader Startup India initiative.
• Builds on the earlier Fund of Funds for Startups (FFS 1.0) launched in 2016.
• Approved in 2026 by the Union Cabinet.

OBJECTIVE

• Strengthen the domestic venture capital ecosystem
• Support innovation-led, technology-driven entrepreneurship.
• Reduce funding gaps and high-risk capital constraints.

Features

• Targeted funding approach for priority sectors and focus on deep tech/tech-driven manufacturing.
• Support early-growth stage startupsà Reduce failure due to funding gaps.
• Pan-India & Risk Capitalà National coverage beyond metros and addressing high-risk capital gaps
• Domestic Capital àStrengthens India’s domestic venture capital base, especially smaller funds

Fund of Funds for Startups (FFS) 1.0

• Flagship initiative of the DPIIT under the Startup India Action Plan.
• To address funding gaps and expand domestic risk capital via SEBI-registered Alternative Investment Funds (AIFs) and strengthen India’s startup ecosystem.
• Managed by – The Small Industries Development Bank of India (SIDBI).
• Roleà Nurturing first-time founders, crowding in private capital, and helping build a strong foundation for India’s venture capital ecosystem