STARTUP INDIA FUND OF FUNDS 2.0 (FOF 2.0)

NEWS: The Government has officially notified the Startup India Fund of Funds 2.0 (FoF 2.0)

ABOUT

• Startup India FoF 2.0àGovernment-backed investment vehicle designed to catalyze domestic capital for startups by contributing to the corpus of SEBI-registered Alternative Investment Funds (AIFs).
• It invests in other venture capital funds which, in turn, invest in individual startups.
• The second phase (2.0) was notified on April 13, 2026
• Original FFS launched in 2016.
• Department for Promotion of Industry and Internal Trade (DPIIT).

Aim and Objectives

• To bridge the funding gap for early and growth-stage startups in India.
• Mobilize private venture capital by providing a cornerstone government commitment.
• Foster innovation-led growth specifically in globally competitive technologies + manufacturing.

Key Features

• Focuses on deep tech, innovative manufacturing, and early growth-stage startups supported by smaller AIFs
• Total Corpusà₹10,000 croreà spread across the 16th and 17th Finance Commission cycles.
• Fund remains flexible to support startups across various sectors and stages.
• Structured screening process involving the VCIC to ensure high-quality fund selection.
• Includes provisions for the Government + institutional investors to co-invest under an umbrella framework with strict governance safeguards.
• Funds must be SEBI-registered AIFs and invest in entities officially recognized as ‘startups’ by the Central Government.