**Executive Summary**
The Union Cabinet approved the Startup India Fund of Funds 2.0 (Startup India FoF 2.0) on February 14, 2026. This initiative allocates a corpus of Rs. 10,000 crore to mobilize venture capital for India's startup ecosystem, supporting deep tech, tech-driven manufacturing startups, and early-growth stage startups. The scheme aims to accelerate India's startup journey by strengthening the venture capital ecosystem and promoting innovation-led entrepreneurship.
**Key Points / Main Content**
* **Purpose and Scope:**
* Startup India FoF 2.0 aims to mobilize venture capital for India's startup ecosystem.
* The focus is on deep tech, tech-driven innovative manufacturing, and early-growth stage startups.
* **Building on Previous Efforts:**
* Startup India FoF 2.0 builds upon the success of the Fund of Funds for Startups (FFS 1.0), launched in 2016.
* FFS 1.0 committed its entire corpus of Rs. 10,000 crore to 145 Alternative Investment Funds (AIFs), investing in over 1,370 startups.
* **Key Features of the Scheme:**
* Targeted, segmented funding approach.
* Prioritization of high-tech areas requiring long-term capital.
* Safety net for new and innovative ideas to reduce early-stage failures.
* Encouragement of investment beyond major metros to foster innovation across the country.
* Directing greater capital to priority areas to enhance self-reliance and economic growth.
* Strengthening of India's domestic venture capital base, particularly smaller funds.
* **Expected Impact:**
* Expected to play a pivotal role in shaping India's economic trajectory, leading to transformational impact.
* Advance India's innovation-led growth agenda.
* Strengthen India's economic resilience, boosting manufacturing capabilities, generating high-quality jobs.
* Position India as a global innovation hub.
**Impact Analysis**
**Stakeholder:** Indian Startups
* **Impact:** Increased access to venture capital, particularly for deep tech, tech-driven manufacturing, and early-growth stage ventures, leading to growth and innovation.
* **Action Required:** Prepare robust business plans and pitches to attract funding from AIFs participating in the Startup India FoF 2.0 scheme.
**Stakeholder:** Alternative Investment Funds (AIFs)
* **Impact:** Opportunity to participate in the Startup India FoF 2.0 scheme and access capital to invest in promising Indian startups.
* **Action Required:** Apply to the relevant authorities to access capital from the Startup India FoF 2.0.
**Stakeholder:** The Indian Economy
* **Impact:** Potential for accelerated economic growth driven by innovation, increased manufacturing capabilities, and job creation.
* **Action Required:** Monitor the progress of the Startup India FoF 2.0 scheme and adjust policies to maximize its effectiveness.
Key Entities Referenced
Startup India Fund of Funds 2.0 (Startup India FoF 2.0): A scheme with a corpus of Rs. 10,000 crore to mobilize venture capital for the Indian startup ecosystem.
Startup India Initiative: A Government of India initiative to build a strong ecosystem for nurturing innovation and startups in the country.
Fund of Funds for Startups (FFS 1.0): The predecessor to Startup India FoF 2.0, launched in 2016 to address funding gaps for startups.
Alternative Investment Funds (AIFs): Financial institutions that receive investments from Startup India FFS 1.0 and invest in startups.
Department for Promotion of Industry and Internal Trade (DPIIT): The department responsible for promotion of industry and internal trade in India.
Cabinet
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 1:11PM 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:a. Deep tech and tech-driven innovative manufacturing: Prioritizing breakthroughs in high-tech
areas that require patient, long-term capital.
b. Empowering early-growth stage founders: Providing a safety net for new and innovative
ideas, reducing early-stage failures caused by lack of funding.
c. National reach: Encouraging investment beyond major metros so that, the innovation thrives
in every corner of the country.
d. Designed to address high-risk capital gaps: Directing greater capital to priority areas which
are important for self-reliance and boosting economic growth.
e. 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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