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India Doubles Down on State-Backed Venture Capital, Approving $1.1B Fund
The Rs 10,000 crore fund aims to support startups in deep tech, innovative manufacturing, and early-growth stages, with investments beyond major metros, fostering over 1,370 startups.
- On Saturday , the Union Cabinet chaired by Prime Minister Narendra Modi approved the Startup India Fund of Funds 2.0 with a corpus of Rs 10,000 crore.
- Launched in 2016, the original Fund of Funds 1.0 committed 100 billion to private funds to address funding gaps and catalyse the domestic venture capital market.
- Targeting deep-tech and innovative manufacturing, FoF 2.0 uses a segmented approach, guided by an Empowered Committee, channeling capital through Alternative Investment Funds that invested over Rs 25,500 crore in more than 1,370 startups.
- Following budget approval, the Cabinet on Friday approved the second tranche of the Fund, which aims to mobilise long-term domestic capital, strengthen smaller domestic venture capital funds, and support early-stage founders.
- Despite record registrations, 2025 funding totaled $100 billion, while funding rounds dropped nearly 39% to 1,518, as officials highlighted on government slides.
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Cabinet approves ₹10,000 crore fund for startups to mobilise venture capital, support deep-tech entities
The key focus would be on deep tech startups, early growth stage startups through smaller funds, tech-driven innovative manufacturing startups, and sector/stage agnostic startups
·India
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Startup India FoF 2.0: ₹10,000 Cr to Scale High-Growth Tech
February 14, 2026: New Delhi, India : Startup India Ecosystem got a big boost with India’s Union Cabinet greenlighting the second iteration of a monumental initiative, the Startup India Fund of Funds 2.0 (Startup India FoF 2.0), injecting a robust ₹10,000 crore (approximately $1.2 billion USD) into the nation’s burgeoning startup ecosystem. This government fund is a strategic maneuver designed to supercharge India’s innovative spirit, mobilize c…
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Leaning Left2Leaning Right1Center1Last UpdatedBias Distribution50% Left
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L 50%
C 25%
R 25%
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