The Government of India has approved Startup India Fund of Funds (FoF) 2.0 with a corpus of ₹10,000 crore. Managed by SIDBI under the oversight of DPIIT, the fund will provide critical risk capital to early-stage startups and deep-tech ventures, strengthening India’s innovation ecosystem and entrepreneurial growth.
On February 13, 2026, Prime Minister Narendra Modi approved the second phase of the Startup India Fund of Funds scheme. The ₹10,000 crore corpus is designed to encourage early-stage companies, deep-tech research, and innovation-driven enterprises.
The fund will be managed by the Small Industries Development Bank of India (SIDBI), continuing the model established in 2016 when the first FoF was launched with an identical corpus. That initial fund has already been fully utilized, supporting thousands of startups across India.
This new tranche reflects the government’s commitment to strengthening India’s startup ecosystem, particularly in technology, research, and innovation sectors. It is also among the first major policy decisions taken from the Prime Minister’s new office, Seva Teerth.
Major Takeaways
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Corpus approved: ₹10,000 crore for Startup India FoF 2.0
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Focus areas: Early-stage startups and deep-tech ventures
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Management: SIDBI under DPIIT oversight
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Continuation: Builds on the fully utilized 2016 FoF corpus
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Policy significance: Among first decisions from PM Modi’s new office, Seva Teerth
Conclusion
The approval of Startup India FoF 2.0 marks a decisive step in India’s journey toward becoming a global innovation hub. By channeling funds into deep-tech and early-stage ventures, the government aims to empower entrepreneurs, drive research, and strengthen India’s position in the global startup landscape.
Sources: Times of India, Financial Express, Inc42