Business
Government Approves Startup India Fund Of Funds 2.0 To Strengthen Startup Ecosystem
Last Updated:
Narendra Modi’s Union Cabinet approves Startup India Fund of Funds 2.0 with Rs 10000 crore to boost venture capital, support deep tech, empower founders, etc.
Startup India FoF 2.0 is designed to take Indian innovation to the next level.
Startup India FoF 2.0: The Union Cabinet chaired by the Prime Minister, 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.
It is aimed to boost 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.
A fund of funds (FoF) is an investment vehicle that does not invest directly in startups or companies. Instead, it invests in other venture capital or private equity funds. This helps spread risk and allows the money to be managed by experienced fund managers.
Key Features Of Startup India FoF 2.0
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:
Deep tech and tech-driven innovative manufacturing: Prioritizing breakthroughs in high-tech areas that require patient, long-term capital.
Empowering early-growth stage founders: Providing a safety net for new and innovative ideas, reducing early-stage failures caused by lack of funding.
National reach: Encouraging investment beyond major metros so that, the innovation thrives in every corner of the country.
Designed to address high‑risk capital gaps: Directing greater capital to priority areas that are important for self-reliance and boosting economic growth.
Strengthen India’s domestic venture capital base, particularly smaller funds to further boost the domestic investment landscape.
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.
February 14, 2026, 15:17 IST
Read More