The Central Government notified 'Startup India Fund of Funds 2.0' on 13 April 2026 with a Rs 10,000 crore corpus to mobilize venture capital for DPIIT-recognised startups. SIDBI is the primary Implementation Agency, investing in SEBI-registered AIFs (which then back startups) with priority on deep tech, early-growth-stage ventures backed by smaller AIFs, and innovative manufacturing. Government capital is designed to attract 3-4x private co-investment.
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Govt notifies Startup India Fund of Funds 2.0 with Rs 10,000 cr corpus
Why this matters for founders
Founders raising from Indian VCs should target AIFs registered under FoF 2.0, since these funds carry fresh government-anchored capital earmarked for DPIIT-recognised startups. Deep tech, early-stage and manufacturing-focused startups get explicit priority, so secure DPIIT recognition to be eligible for the downstream funds.
Source: Press Information Bureau (PIB)
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