Startup India Fund of Funds 2.0 is the new version of Fund of Funds for Startups, notified by the Department for Promotion of Industry and Internal Trade on April 13, 2026, with a total corpus of ₹10,000 crore. Managed through SIDBI, this scheme provides equity support to DPIIT-recognized startups by investing in SEBI-registered Alternative Investment Funds, which then channel capital into promising Indian ventures.
Building on the success of the earlier Fund of Funds for Startups launched in 2016, Startup India FoF 2.0 is now in force with commitments to AIFs spread over the 16th and 17th Finance Commission cycles. The scheme acts as a catalyst rather than a direct investor, and it mandates minimum private capital mobilization so that every rupee from the government brings in private money as well.
Startup India Fund of Funds 2.0 - Introduction
Startup India Fund of Funds 2.0 is a central government scheme that helps Indian startups get equity funding. Instead of investing directly, the scheme gives money to SEBI-registered Alternative Investment Funds, which then invest in DPIIT-recognized startups. This indirect route keeps the process professional and lets expert fund managers decide which startups deserve support.
SIDBI, which ran the earlier Fund of Funds for Startups, is the initial implementing agency for Startup India FoF 2.0. DPIIT will also onboard an additional implementing agency to expand reach, add sectoral expertise, and build capacity. The operational guidelines for the scheme were issued on April 25, 2026.
The scheme has four priority segments: deep tech focused funds, micro venture capital funds supporting early-growth startups, funds focused on new and technology-led manufacturing, and sector and stage agnostic funds. Each segment has its own corpus limits, government contribution caps, tenure, and minimum private capital mobilization ratios.
Key Information
| Detail | Information |
|---|---|
| Scheme Name | Startup India Fund of Funds 2.0 |
| Level | Central |
| Nodal Ministry | Ministry of Commerce and Industry |
| Nodal Department | Department for Promotion of Industry and Internal Trade (DPIIT) |
| Implementing Agency | SIDBI |
| Total Corpus | ₹10,000 crore |
| Notified On | April 13, 2026 |
| Beneficiaries | DPIIT-recognized startups |
| Funding Route | Through SEBI-registered Category I and II AIFs |
| Official Website | sidbivcf.in |
Benefits
Startup India Fund of Funds 2.0 brings several benefits for startups and for the venture capital ecosystem in India.
- Equity funding without direct government control. Startups get capital through AIFs, and investment decisions stay with the fund managers, so the process stays market driven.
- Private capital mobilization. The scheme mandates minimum private capital, so every government rupee brings in additional private investment, creating a multiplier effect for the startup ecosystem.
- Wider access across sectors and stages. With deep tech, micro VC, manufacturing, and agnostic segments, startups at different stages and in different industries can find a suitable fund.
- Ecosystem support. A portion of returns is set aside for mentorship, shared infrastructure, and ecosystem development, which helps startups beyond just money.
Eligibility
The scheme provides funds indirectly through AIFs. Startups that receive the investment must be DPIIT-recognized. For AIFs that want to raise money from this scheme, the main conditions are these.
An AIF must hold a valid registration as a Category I or II fund with SEBI. Its investment strategy must focus on startups that meet the government definition of innovation and scalability. The fund must also commit to investing at least twice the amount it receives from the scheme into qualifying startups, and it must follow the corpus, tenure, and private capital mobilization rules set for its segment.
For startups, the basic requirement is DPIIT recognition. A startup is an entity incorporated in India, not older than 10 years, with an annual turnover not exceeding ₹100 crore, working on innovation, development, or improvement of products and processes.
Application Process
Startup India Fund of Funds 2.0 uses a two-stage selection process for AIFs. The implementing agency carries out initial screening and due diligence, and then a Venture Capital Investment Committee evaluates the proposals. The steps are given below.
STEP 1 - Visit the official SIDBI Fund of Funds website at sidbivcf.in and go to the Startup India Fund of Funds 2.0 section to read the scheme details and operational guidelines.
STEP 2 - Check whether the fund meets the eligibility conditions, including SEBI registration, corpus limits, and the priority segment rules.
STEP 3 - Prepare the fund proposal with details of the investment strategy, team track record, and planned allocation to DPIIT-recognized startups.
STEP 4 - Submit the application to the implementing agency, which carries out initial screening and due diligence on the fund.
STEP 5 - Present the proposal to the Venture Capital Investment Committee, which reviews the team's track record, fund management capability, and investment strategy.
STEP 6 - Await the final approval and sanction, and then sign the legal agreements to formalize the investment.
Documents
Applicant funds should keep the following documents ready for the application process.
1) AIF registration certificate issued by SEBI.
2) Investment Management (IM) Agreement.
3) Past investment track record report.
4) Private Placement Memorandum (PPM).
5) Current and past financial statements for the fund.
6) Trust Deed documents.
7) Detailed list of contributors.
8) DPIIT startup recognition details of the startups the fund plans to back.
9) KYC documents for key individuals.
References
Startup India Fund of Funds 2.0 Official Page
Startup India Fund of Funds 2.0 Notification PDF
PIB Press Release on Operational Guidelines
Fund of Funds for Startups (FFS 1.0) Page
FAQ's
What is Startup India Fund of Funds 2.0?
It is the new version of Fund of Funds for Startups, notified on April 13, 2026, with a ₹10,000 crore corpus. It invests in SEBI-registered AIFs, which then fund DPIIT-recognized startups.
Who runs Startup India Fund of Funds 2.0?
SIDBI is the initial implementing agency. DPIIT will also onboard an additional implementing agency to expand reach and capacity.
Is this scheme different from the earlier Fund of Funds for Startups?
Yes. Startup India FoF 2.0 builds on the earlier FFS 1.0, adds priority segments, and mandates minimum private capital mobilization to create a bigger multiplier effect.
Can startups apply directly to this scheme?
No. The scheme gives money to AIFs, and startups get funding by connecting with the AIFs that are backed by the scheme.
Which AIFs are eligible?
SEBI-registered Category I and II Alternative Investment Funds are eligible, subject to the corpus, tenure, and private capital rules for their segment.
Is DPIIT recognition required?
Yes. Startups receiving the investment must be DPIIT-recognized.
What are the priority segments?
The scheme covers deep tech funds, micro venture capital funds for early-growth startups, funds for new and technology-led manufacturing, and sector and stage agnostic funds.
What is the corpus of the scheme?
The total corpus is ₹10,000 crore, with commitments spread over the 16th and 17th Finance Commission cycles.