Startup India Fund 2.0: Boosting Innovation with Expanded Support

The Fund of Funds 2.0, worth Rs 10,000 crore, will support startups with a segmented approach. The initiative aims to boost deep-tech, innovative manufacturing, and early growth stage enterprises. This fund, approved by the Cabinet, seeks to expand the investment momentum of the original scheme.

The Rs 10,000 crore Fund of Funds 2.0 is set to enhance its support for startups with a broadened focus, as outlined by a DPIIT notification. The Cabinet-approved scheme aims to spur venture capital investments into deep-tech and manufacturing startups, as well as enterprises in their early growth stages.

According to the Department for Promotion of Industry and Internal Trade, the expanded scope of FoF 2.0 will segment the fund into four categories to best address the diverse needs of the startup ecosystem. These segments include support for deep-tech solutions, early growth startups, innovative manufacturing businesses, and a stage-agnostic category.

Guidelines will ensure operational flexibility for fund allocation, addressing the unique demands of each segment. With SIDBI as the primary implementation body, an additional domestic agency and an empowered committee will oversee the program's rollout and efficacy.

(With inputs from agencies.)