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Cabinet approves Startup India Fund of Funds 2.0 with ₹10,000 crore corpus

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

startups in India, start- ups, valuation, Fundraising

The fund will encourage the long-term investing culture and patient capital | Illustration: Binay Sinha

1 min read Last Updated : Feb 14 2026 | 2:56 PM IST

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The Cabinet has approved the second tranche of the Startup India Fund of Funds Scheme with a corpus of Rs 10,000 crore, Union Minister Ashwini Vaishnaw said on Saturday.

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, he added.

There will be operational flexibilities, including higher government contribution in AlFs (alternative investment funds) funding deep tech and high-tech manufacturing, the minister said.

The Union Cabinet approved the scheme in a meeting on Friday.

The fund will encourage the long-term investing culture and patient capital.

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The government in 2016 had constituted a Fund of Funds worth Rs 10,000 crore to provide seed capital and enable startups take calculated risks.

Following the successful utilisation of the first tranche, a second phase of Rs 10,000 crore was sanctioned in the Union Budget for 2025-26.

So far, over 2 lakh entities are recognised as startups by the Department for Promotion of Industry and Internal Trade (DPIIT). These entities are eligible for incentives under the Startup India action plan.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)