Centre Launches Startup India Fund of Funds 2.0

On 13th April 2026, the Government of India notified Startup India Fund of Funds 2.0 with a ₹10,000 crore corpus to boost venture capital investment in startups, especially in deeptech and manufacturing.

Key Points

Implementation Structure:
- Funds routed through SEBI-registered Alternative Investment Funds (AIFs).
- AIFs will invest in startups across sectors.
Key Innovation:
- Segmented approach targeting specific startup categories.
- Includes deeptech, early-stage, and manufacturing-focused funds.
Support for Deeptech:
- Targets startups with long R&D cycles and high costs.
- Addresses complex technological challenges.
Flexibility in Funding:
- Allows larger corpus and longer-duration AIFs.
- Suitable for capital-intensive and long-gestation sectors.
Addressing Funding Gaps:
- Higher government contribution in sectors with limited private investment.
- Focus on areas where private capital is cautious.
Expanded Framework:
- Acts as umbrella platform for co-investment.
- Involves ministries and institutional investors.
Ecosystem Support:
- Up to 5% of returns for mentorship, capacity building, and regulatory support.
- Remaining returns go to Consolidated Fund of India.
Implementing Agency:
- Small Industries Development Bank of India.
- Additional agencies to be appointed.