**Executive Summary**
The Union Cabinet has approved the Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a corpus of Rs. 10,000 crore, to mobilize venture capital for India's startup ecosystem. This scheme aims to accelerate India's startup journey by mobilizing long-term domestic capital and supporting innovation-led entrepreneurship across the country. It was posted on February 14, 2026.
**Key Points / Main Content**
* **Purpose:** To mobilize venture capital for India's startup ecosystem.
* **Funding:**
* Startup India FoF 2.0 has a corpus of Rs. 10,000 crore.
* Startup India FoF 2.0 builds on the success of Startup India FoF 1.0 (FFS 1.0) launched in 2016 with a Rs. 10,000 crore corpus, which was committed to 145 Alternative Investment Funds (AIFs).
* Supported AIFs under FFS 1.0 have invested over Rs. 25,500 crore in more than 1,370 startups.
* **Focus Areas:**
* Deep tech and tech-driven innovative manufacturing.
* Early-growth stage founders.
* Encouraging investment beyond major metro areas.
* Addressing high-risk capital gaps in priority areas.
* Strengthening India's domestic venture capital base.
* **Objectives:**
* Advance India's innovation-led growth agenda.
* Strengthen India's economic resilience and manufacturing capabilities.
* Generate high-quality jobs.
* Position India as a global innovation hub.
**Impact Analysis**
**Startups (especially deep tech, tech-driven manufacturing, and early-growth stage)**
* **Impact:** Increased access to venture capital, which can fuel growth, innovation, and expansion.
* **Action Required:** Prepare to engage with and seek funding from the Startup India FoF 2.0 and associated venture capital funds.
**Venture Capital Funds (especially smaller, domestic funds)**
* **Impact:** Enhanced ability to invest in and support Indian startups.
* **Action Required:** Explore opportunities to participate in Startup India FoF 2.0 and manage funds allocated to startups.
**Indian Economy**
* **Impact:** Contribution to economic growth, increased manufacturing capabilities, and job creation.
* **Action Required:** None specified.
**Entrepreneurs**
* **Impact:** The initiative will foster innovation, empower entrepreneurs, and unlock the full potential of India's startup ecosystem
* **Action Required:** None specified.
Key Entities Referenced
Startup India Fund of Funds 2.0: A scheme to mobilize venture capital for India's startup ecosystem, with a corpus of Rs. 10,000 crore.
Startup India initiative: A Government of India initiative designed to promote and support startups in the country.
Department for Promotion of Industry and Internal Trade (DPIIT): Indian government department responsible for the promotion of industry and internal trade, including the Startup India initiative.
Fund of Funds for Startups (FFS 1.0): A predecessor scheme to Startup India FoF 2.0, launched in 2016 to address funding gaps in the startup ecosystem.
Ministry of Commerce & Industry
Cabinet approves Startup India Fund of Funds
2.0 to Mobilize Venture Capital for India’s Startup
Ecosystem
Rs. 10,000 crore corpus to support deep tech, tech-driven
innovative manufacturing startups, and early-growth stage
startups
Posted On: 14 FEB 2026 1:31PM by PIB Delhi
In a major boost to India’s growing startup ecosystem, the Union Cabinet chaired by the Prime Minister,
Shri Narendra Modi, has approved the establishment of the Startup India Fund of Funds 2.0 (Startup India
FoF 2.0) with a total corpus of Rs. 10,000 crore for the purpose of mobilizing venture capital for the
startup ecosystem of the country.
The Scheme is designed to accelerate the next phase of India’s startup journey by mobilising long-term
domestic capital, strengthening the venture capital ecosystem, and supporting innovation-led
entrepreneurship across the country.
Launched under the Startup India initiative, Startup India FoF 2.0 builds on nearly a decade of sustained
efforts to make India one of the world’s leading startup nations. Since the launch of Startup India in 2016,
India’s startup ecosystem has witnessed an extraordinary transformation growing from fewer than 500
startups to over 2 lakh Department for Promotion of Industry and Internal Trade (DPIIT)-recognised
startups today, with 2025 marking the highest ever annual startup registrations.
Building on Fund of Funds for Startups 1.0
The Startup India FoF 2.0 follows the strong performance of the Fund of Funds for Startups (FFS 1.0),
which was launched in 2016 to address funding gaps and catalyse the domestic venture capital market for
startups.
Under FFS 1.0, the entire corpus of Rs. 10,000 crore has been committed to 145 Alternative Investment
Funds (AIFs). Such supported AIFs have invested over Rs. 25,500 crore in more than 1,370 startups
across the country in sectors such as agriculture, artificial intelligence, robotics, automotive, clean tech,
consumer goods & services, e-commerce, education, fintech, food & beverages, healthcare,
manufacturing, space tech, and biotechnology amongst others.
FFS 1.0 played a pivotal role in nurturing first-time founders, crowding in private capital, and helping
build a strong foundation for India’s venture capital ecosystem.
Key Features of the Scheme:
While the first phase built the ecosystem, Startup India FoF 2.0 is designed to take Indian innovation to
the next level. The new fund will have a targeted, segmented funding approach to support:1. 1. Deep tech and tech-driven innovative manufacturing: Prioritizing breakthroughs in high-tech
areas that require patient, long-term capital.
2. Empowering early-growth stage founders: Providing a safety net for new and innovative
ideas, reducing early-stage failures caused by lack of funding.
3. National reach: Encouraging investment beyond major metros so that, the innovation thrives
in every corner of the country.
4. Designed to address high-risk capital gaps: Directing greater capital to priority areas which
are important for self-reliance and boosting economic growth.
5. Strengthen India’s domestic venture capital base, particularly smaller funds to further boost
the domestic investment landscape.
Startup India FoF 2.0 is expected to play a pivotal role in shaping India’s economic trajectory,
leading to transformational impact.
Startup India Fund of Funds 2.0 is expected to play a critical role in advancing India’s innovation-led
growth agenda. By supporting startups that build globally competitive technologies, products, and
solutions, the Fund will contribute to strengthening India’s economic resilience, boosting manufacturing
capabilities, generating high-quality jobs, and positioning India as a global innovation hub.
Aligned with the national vision of Viksit Bharat @ 2047, the Fund represents the Government’s
continued commitment to empowering entrepreneurs, fostering innovation, and unlocking the full
potential of India’s startup ecosystem.
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