Startup India FoF 2.0: ₹10,000 Crore Fund for Deep Tech
Why in the news
The government notified the second phase of the Fund of Funds for startups, putting ₹10,000 crore behind specialised areas such as deep tech and home-grown manufacturing.
Key facts
- Notified: 13 April 2026; corpus: ₹10,000 crore.
- Original scheme dates from 2016.
- The corpus is spread across the 16th and 17th Finance Commission cycles, for fiscal predictability.
- Deep tech mandate covers globally competitive fields: quantum, AI, space-tech; it links with the Amaravati Quantum Reference Facility.
- Smaller, niche AIFs are encouraged, including those focused on tier-2/3 cities and agri-tech.
How the model flows
| Level | Who | Role |
|---|---|---|
| 1 | DPIIT to SIDBI | SIDBI manages the fund |
| 2 | SIDBI to SEBI-registered AIFs | Private venture capital firms |
| 3 | AIFs to startups | AIFs add private money, usually 2x to 4x the government share |
About a Fund of Funds
- It does not fund startups directly; it acts as a cornerstone investor lending credibility and capital to professional funds.
- The co-investment framework is a first: a “double-booster” of capital in promising startups.
Exam angle
- Nodal department: DPIIT; fund manager: SIDBI.
- Investee entities: SEBI-registered AIFs.