On 14 February 2026, the Union Cabinet chaired by Prime Minister Narendra Modi approved the launch of Startup India Fund of Funds 2.0 with a corpus of ₹10,000 crore. The initiative aims to mobilise long-term domestic capital and further strengthen India’s venture capital ecosystem.
Launched under the broader Startup India mission, the new Fund of Funds 2.0 represents the next phase of India’s startup journey, focusing on innovation-led entrepreneurship and sustainable capital formation.
Background: A Decade of Startup Growth
Since the launch of Startup India in 2016, the country’s startup ecosystem has expanded dramatically—from fewer than 500 startups to more than 2 lakh startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT). Notably, 2025 recorded the highest-ever annual startup registrations.
Learning from Fund of Funds for Startups (FFS 1.0)
The new scheme builds on the success of Fund of Funds for Startups (FFS 1.0), introduced in 2016 to bridge funding gaps and catalyse domestic venture capital.
Key achievements of FFS 1.0:
₹10,000 crore committed to 145 Alternative Investment Funds (AIFs)
Over ₹25,500 crore invested by supported AIFs
More than 1,370 startups funded across diverse sectors including:
Agriculture
Artificial Intelligence & Robotics
Automotive
Clean Tech
Consumer & E-commerce
Education
Fintech
Healthcare
Manufacturing
Space Tech
Biotechnology
FFS 1.0 helped nurture first-time founders, crowd in private capital, and lay the foundation for a strong domestic VC ecosystem.
Key Features of Startup India FoF 2.0
The new fund adopts a more targeted and segmented approach:
1. Deep Tech & Advanced Manufacturing
Focus on breakthrough technologies requiring patient, long-term capital support.
2. Early-Growth Stage Support
Addressing early-stage capital gaps and reducing startup mortality due to funding constraints.
3. Nationwide Reach
Encouraging investments beyond metro cities to ensure inclusive innovation across regions.
4. Bridging High-Risk Capital Gaps
Channeling capital into strategic and priority sectors aligned with self-reliance and economic growth.
5. Strengthening Domestic VC Ecosystem
Supporting smaller and emerging venture funds to deepen India’s indigenous investment base.
Strategic Significance
Startup India FoF 2.0 is expected to:
Boost innovation-driven manufacturing
Enhance economic resilience
Generate high-quality employment
Position India as a global innovation hub
Aligned with the national vision of Viksit Bharat @ 2047, the initiative reinforces the Government’s commitment to empowering entrepreneurs and sustaining India’s innovation-led growth trajectory.