**Executive Summary**
The Government of India notified the Startup India Fund of Funds 2.0 (FoF 2.0) on April 13, 2026, with a corpus of ₹10,000 crore to mobilize venture and growth capital. The scheme builds upon the previous FFS 1.0 to support deep tech, innovative manufacturing, and early-growth startups across the 16th and 17th Finance Commission cycles. Key immediate actions include the operationalization of the scheme by SIDBI and the forthcoming issuance of guidelines by the DPIIT.
**Key Points / Main Content**
**Fund Allocation and Objectives**
* **Corpus:** A total of ₹10,000 crore is allocated to provide commitments to eligible Alternative Investment Funds (AIFs).
* **Priority Segments:** Investments will target deep tech, early-growth startups supported by smaller AIFs, technology-driven manufacturing, and sector-agnostic startups.
* **Strategic Alignment:** The fund aligns with the "Viksit Bharat @ 2047" vision to foster innovation, generate high-quality jobs, and strengthen economic resilience.
**Governance and Oversight**
* **Selection Process:** A Venture Capital Investment Committee (VCIC), consisting of startup ecosystem veterans, will screen AIFs through a structured process.
* **Monitoring:** An Empowered Committee (EC) will be established to monitor the implementation and performance of the scheme.
* **Co-investment:** The framework includes provisions for co-investment by the Government and institutional investors under an umbrella framework with governance safeguards.
**Administration and Implementation**
* **Regulatory Body:** The Department for Promotion of Industry and Internal Trade (DPIIT) is responsible for issuing operational guidelines and determining the composition of the VCIC.
* **Primary Agency:** The Small Industries Development Bank of India (SIDBI) serves as the Implementation Agency (IA), effective from the notification date.
* **Expansion:** A second domestic Implementation Agency will be selected to assist in the execution of the scheme.
**Impact Analysis**
**Startups (Recognized by the Central Government)**
**Impact**
Increased availability of venture and growth capital, particularly for those building globally competitive technologies and innovative products.
**Action Required**
Maintain official recognition as 'startups' by the Central Government to remain eligible for AIF investments.
**Alternative Investment Funds (AIFs)**
**Impact**
Access to Government commitments to boost their fund corpus for investing in the startup ecosystem.
**Action Required**
Must be SEBI-registered and undergo the screening and selection process conducted by the VCIC.
**Small Industries Development Bank of India (SIDBI)**
**Impact**
Designated as the initial Implementation Agency responsible for the scheme's execution.
**Action Required**
Commence the operationalization of the scheme immediately following the notification.
**Department for Promotion of Industry and Internal Trade (DPIIT)**
**Impact**
Responsible for the policy framework and administrative oversight of the fund.
**Action Required**
Issue the formal operational guidelines and finalize the composition of the Venture Capital Investment Committee.
Key Entities Referenced
Startup India Fund of Funds 2.0 (Startup India FoF 2.0): A notified scheme with a ₹10,000 crore corpus aimed at mobilizing venture and growth capital for deep tech, early-growth, and innovative manufacturing startups.
Department for Promotion of Industry and Internal Trade (DPIIT): The nodal department responsible for issuing operational guidelines and the composition of the Venture Capital Investment Committee for the scheme.
Small Industries Development Bank of India (SIDBI): The designated Implementation Agency responsible for the operationalization of the Startup India FoF 2.0 scheme.
Venture Capital Investment Committee (VCIC): A committee comprising startup ecosystem veterans responsible for screening and selecting eligible Alternative Investment Funds (AIFs) under the scheme.
Fund of Funds for Startups (FFS 1.0): The predecessor program launched in 2016 under the Startup India Action Plan, which serves as the foundation for the 2.0 version.
Ministry of Commerce & Industry
Government notifies Startup India Fund of Funds
2.0 with ₹10,000 crore corpus to mobilize capital
for startups
Startup India FoF 2.0 to support deep tech, early growth-
stage and innovative manufacturing startups
Posted On: 13 APR 2026 6:50PM by PIB Delhi
The Government has notified the Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a total
corpus of ₹10,000 crore for the purpose of mobilizing venture and growth capital for the startup
ecosystem of the country.
The Startup India FoF 2.0 builds upon the strong performance of the Fund of Funds for Startups (FFS 1.0),
which was launched in 2016 under the Startup India Action Plan to address funding gaps and catalyse the
domestic capital for startups.
Startup India FoF 2.0 will have a total corpus of ₹10,000 crore for commitments to eligible Alternative
Investment Funds (AIFs) spread across the 16th and 17th Finance Commission cycles.
Investments under Startup India FoF 2.0 will focus on Alternative Investment Funds supporting priority
segments including deep tech startups, early growth stage startups supported by smaller AIFs, technology-
driven and innovative manufacturing startups, and sector or stage agnostic startups.
Startup India FoF 2.0 will follow a structured selection process for AIFs involving screening by a Venture
Capital Investment Committee (VCIC) comprising of veterans from the startup ecosystem, and the
Scheme incorporates robust monitoring and oversight mechanisms, while an Empowered Committee (EC)
will also be constituted to monitor implementation and performance of the Scheme, and provisions for co-
investment by Government and institutional investors under an umbrella framework have been included
with appropriate governance safeguards.
The operational guidelines and the composition of VCIC will be issued by the Department for Promotion
of Industry and Internal Trade (DPIIT).
Startup India FoF 2.0 is expected to play a critical role in advancing India’s innovation-led growth agenda,
and by supporting startups that build globally competitive technologies, products, and solutions, the
Scheme will contribute to strengthening India’s economic resilience, boosting manufacturing capabilities,
generating high-quality jobs, and positioning India as a global innovation hub.
The Small Industries Development Bank of India (SIDBI) will commence operationalization of the
scheme as the Implementation Agency (IA) with effect from the date of notification, and in addition,
another domestic Implementation Agency will also be selected to implement the proposed Scheme.The Startup India FoF 2.0 will contribute to the corpus of SEBI-registered Alternative Investment Funds
(AIFs) for investing in entities recognised as ‘startups’ by the Central Government.
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.
The notification is available at the following link: https://egazette.gov.in/WriteReadData/2026/271764.pdf
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Abhishek Dayal/Abhijith Narayanan/Garima Singh
(Release ID: 2251638) Visitor Counter : 1097
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