Government Approves Startup India Fund of Funds 2.0 with Rs 10,000 Crore Corpus
The Indian government has given its approval for the second phase of the Startup India Fund of Funds Scheme with a substantial corpus of Rs 10,000 crore. This move is aimed at supporting startups in their early stages and promoting deep-tech research, as announced by Prime Minister Narendra Modi on social media.
Prime Minister Modi, on his first day at the newly inaugurated Seva Teerth office, signed files related to the empowerment of various sections of society including the poor, farmers, and youth.
One of the significant decisions made by the government is the approval of the Startup India Fund of Funds 2.0 with a corpus of Rs 10,000 crore, marking a crucial step towards fostering innovation and entrepreneurship in the country.
February 13th also marked a milestone as Prime Minister Modi transitioned to his new office at Seva Teerth, symbolizing a shift towards a new era of governance and development.
Launched in 2016, the Fund of Funds initiative was created with an initial corpus of Rs 10,000 crore to provide vital seed capital to startups, enabling them to take calculated risks and grow sustainably.
Following the success of the first phase, the government has allocated an additional Rs 10,000 crore in the Union Budget for 2025-26 to further support the startup ecosystem in the country.
Currently, there are over 2 lakh recognized startups by the Department for Promotion of Industry and Internal Trade (DPIIT), making them eligible for various incentives under the Startup India action plan.
The Fund of Funds Scheme aims to stimulate venture capital investments and is implemented by the Small Industries Development Bank of India (SIDBI), which provides capital to SEBI-registered Alternative Investment Funds (AIFs) that in turn invest in startups.
Under the scheme, AIFs supported by the Fund of Funds are required to invest at least twice the amount committed under the scheme in startups, ensuring significant financial support for budding entrepreneurs.
The DPIIT serves as the monitoring agency, while SIDBI acts as the operating agency for the Fund of Funds Scheme, overseeing the allocation and utilization of funds to promote innovation and startup growth in the country.
