The Union Cabinet has given the green light to the Startup India Fund of Funds 2.0, allocating Rs 10,000 crore to strengthen venture capital availability for Indian startups. This significant initiative aims to fuel growth in deep technology, innovation-driven manufacturing, and emerging ventures across the country.
Supporting India’s Next Wave of Innovation
The new fund is strategically designed to channel long-term domestic investment into the startup sector, helping bridge the capital gap that many early-stage and technology-focused companies face. By mobilizing venture capital resources, the government hopes to create a more robust funding environment for entrepreneurs.
The initiative particularly targets startups working in advanced technology sectors and those developing innovative manufacturing solutions, areas critical for India’s economic transformation.
Building on a Decade of Progress
Since the Startup India program began in 2016, the country’s entrepreneurial landscape has undergone remarkable growth. The ecosystem has expanded from under 500 registered startups to more than 2 lakh DPIIT-recognized ventures today.
The year 2025 set a new benchmark with the highest number of annual startup registrations recorded in the program’s history, demonstrating the accelerating momentum of India’s innovation economy.
Strengthening Domestic Capital Flow
Startup India FoF 2.0 represents a continuation of nearly ten years of policy efforts aimed at positioning India as a global startup leader. The scheme focuses on attracting domestic capital into the venture funding ecosystem, reducing reliance on foreign investment and creating sustainable growth pathways for homegrown innovation
