In order to raise venture and growth capital for deep-tech startups, early growth-stage businesses, and tech-driven manufacturing ventures, the Indian government announced the establishment of the Rs 10,000 crore Startup India Fund of Funds (FoF 2.0).
Under the Startup India initiative, the previous Fund of Funds for Startups (FFS 1.0), which was introduced in 2016, functions as a “investor for investors.” Over 1,370 startups have benefited from its investments in SEBI-registered Alternative Investment Funds (AIFs), which are managed by the Small Industries Development Bank of India under the Department for Promotion of Industry and Internal Trade.
Additionally, FoF 2.0 will invest in government-recognized startups’ equity and equity-linked instruments through SEBI-registered AIFs.
The fund is divided into four categories: sector-agnostic funds, tech-driven manufacturing, deep-tech, and micro-VCs supporting early growth-stage startups.
Operational guidelines will specify the investment committee structure, reporting requirements, eligibility requirements, fund selection, monitoring, and disbursement mechanisms.
Detailed guidelines will be issued by the Department for Promotion of Industry and Internal Trade, and performance and implementation will be supervised by a committee led by its secretary.
