Cabinet approves Startup India Fund of Funds 2.0 to Mobilize Venture Capital for India’s Startup Ecosystem
- Press Information Bureau
- February 16, 2026
The Indian Union Cabinet has approved the second edition of the Startup India Fund of Funds (FoF) with Rs. 10,000 crore (US$ 1.2 billion) to facilitate venture capital interest in India's expanding start-up ecosystem, as stated by the Press Information Bureau. The purpose of the Fund is to catalyze the next phase of Indian start-ups by providing access to domestic long-term capital and improving the overall venture capital market. This fund will provide patient capital to provide support to deep technology companies; technology-driven, innovative manufacturing ventures; and early-stage growth enterprises that require patient capital. By addressing funding gaps, especially in high-risk and innovation-led sectors, the initiative is expected to catalyse private investments and enhance the scalability of startups across the country.
The Startup India FoF 2.0 builds on the progress achieved under the Startup India initiative launched in 2016, which has transformed India into one of the world’s leading startup ecosystems. The number of recognised startups has expanded significantly from a few hundred to over 2 lakh, reflecting strong entrepreneurial growth and policy support. The Fund of Funds adopts a sectoral and stage-focused approach to investment to enhance the efficient use of mobile capital among various sectors and stages of business development. By providing a greater level of financial support and fostering innovation-based entrepreneurship, the FoF is expected to help create jobs and support India’s position as a global centre of innovation through increased innovation and the development of technology for businesses. Additionally, the scheme is aligned with broader economic goals of promoting self-reliance, enhancing competitiveness, and supporting long-term sustainable growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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