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Startup India Fund of Funds 2.0: ₹10,000 Crore Corpus

18 February 20261 min read
GOVERNMENT SCHEMESStartup India Fundof Funds 2.0:₹10,000 CroreCorpus18 February 2026safalsetu.com

Why in the news

The Cabinet cleared a ₹10,000 crore fund to draw venture capital into startups, as the next phase under Startup India.

Key facts

  • A government-backed fund placing money in AIFs, which then back startups; private money comes in via professional fund managers.
  • Phases: FFS 1.0 (2016) built the ecosystem; FoF 2.0 (2026) deepens capital markets and supports advanced innovation.
  • Goals: stronger domestic venture capital, technology-intensive sectors, funding beyond metros, long-term domestic capital, easier early-stage funding.

Exam angle

  • Corpus: ₹10,000 crore; approved by the Union Cabinet.

Test yourself

1. What corpus did the Union Cabinet approve for Startup India Fund of Funds 2.0?

The fund has a corpus of ₹10,000 crore.

2. Startup India Fund of Funds 2.0 invests money in which type of vehicles?

It invests in AIFs, which in turn invest in startups.

3. In which year was the first phase of the Startup India fund of funds started, according to the FoF 2.0 notes?

The earlier phase, FFS 1.0, dates from 2016.