Startup India Fund of Funds 2.0 Announced:
₹10,000 Crore Boost for Deep-Tech and Early-Stage Startups
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To strengthen India's
startup ecosystem, the government has launched the ‘Startup India Fund of Funds
2.0’. This 2.0 version will be backed by a massive corpus of ₹10,000 Crore.
¨
Announced by the Central Government,
this initiative aims to boost investment in deep-tech, innovative
manufacturing, and early-stage startups.
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This fund will play a
pivotal role in enabling startups to access capital through investment channels
and in providing them with long-term support.
What is the Startup India Fund of Funds
2.0?
¨
The Startup India Fund of
Funds 2.0 (FoF 2.0) is an upgraded version of the previous funding scheme,
which aimed to mobilize venture capital for startups.
¨
Unlike direct funding,
under this scheme, the government will invest in SEBI-registered Alternative
Investment Funds (AIFs), which will, in turn, invest in various startups.
¨
In this second phase, its
scope has been expanded to incorporate a segmented financing approach, while
also ensuring that critical sectors receive targeted financial assistance.
¨
This initiative is
monitored by the Department for Promotion of Industry and Internal Trade
(DPIIT), which functions under the Ministry of Commerce and Industry.
Key Objectives of the Scheme
The Startup India Fund of Funds 2.0 has
been designed with the explicit objective of accelerating innovation and
economic growth. Its key objectives include:
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Promoting venture capital
investment within India's startup ecosystem
¨
Providing support to
deep-tech and R&D-focused startups
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Encouraging startups that
are primarily technology-based
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Strengthening early-stage
and growth-stage startups
