Under the leadership of Prime Minister Narendra Modi, the union cabinet has approved the creation of the Startup India Fund of Funds 2.0 (Startup India FoF 2.0), which will mobilize venture capital for the nation’s startup ecosystem. The fund has a total corpus of Rs 10,000 crore.
By facilitating long-term domestic funding, expanding the venture capital environment, and encouraging innovation-driven entrepreneurship across the country, the program seeks to accelerate the next stage of India’s startup growth.
Established under the Startup India initiative, Startup India FoF 2.0 expands upon nearly a decade of consistent policy advocacy. With a record number of annual registrations in 2025, India’s startup ecosystem has grown from less than 500 businesses to over 2 lakh startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT) since 2016.
Features that Startup India FoF 2.0 has to offer
The goal of Startup India FoF 2.0 is to advance Indian innovation. The new fund will use a focused, divided funding strategy to help:
Deep tech and tech-driven innovative manufacturing: Giving high-tech innovations that call for patient, long-term funding top priority.
Encouraging founders in the early growth stage: lowering early-stage failures brought on by a lack of capital, and offering a safety net for fresh and creative ideas.
National reach: Promoting investment outside of key cities to ensure that innovation flourishes everywhere in the nation.
aimed at filling high-risk capital gaps by focusing more funds on priority areas that are critical to economic growth and self-sufficiency.
To improve the domestic investment environment even more, India could expand its domestic venture capital base, especially its smaller funds.
India’s innovation-led growth objective is anticipated to be significantly advanced by the Startup India Fund of Funds 2.0. According to a Ministry of Commerce and Industry statement, the fund will help strengthen India’s economic resilience, increase manufacturing capabilities, create high-quality jobs, and establish India as a global innovation hub by assisting startups that develop globally competitive technologies, products, and solutions.
