India Launches ₹10,000 Crore Startup FoF 2.0 to Accelerate Deep-Tech…

Sarah J · 2026-04-15T16:10:11.000Z

India has operationalised its ₹10,000 crore Startup India Fund of Funds 2.0 (FoF 2.0), marking a significant policy push to strengthen the country’s deep-tech ecosystem and next-generation innovation landscape. The initiative expands the scope of the earlier Fund of Funds scheme, with a sharper focus on high-impact sectors such as artificial intelligence, semiconductors, space tech, and advanced manufacturing. Unlike its predecessor, FoF 2.0 adopts a more structured and segmented approach, dividing the corpus into multiple categories to better address the diverse funding needs of startups. These include dedicated support for deep-tech ventures, early-stage startups, micro venture capital funds, and technology-driven manufacturing companies. The fund will operate through SEBI-registered Alternative Investment Funds (AIFs), which will channel capital into government-recognised startups via equity and equity-linked instruments. This indirect funding model is designed to crowd in private capital alongside public investment, thereby amplifying the overall impact on the startup ecosystem. A key objective of FoF 2.0 is to address long-standing funding gaps in deep-tech sectors, where startups often require longer gestation periods, higher capital intensity, and sustained research and development support. By introducing operational flexibility and supporting larger and longer-duration funds, the scheme aims to create a more conducive environment for breakthrough innovation. The initiative also reflects a broader strategic shift in India’s startup policy from supporting scale and consumer internet models to prioritizing core technology development and industrial innovation. As global competition intensifies in areas like AI, semiconductors, and advanced computing, FoF 2.0 positions India to build indigenous capabilities and reduce reliance on external technologies. Building on the success of earlier startup initiatives, this new fund is expected to catalyze the next wave of innovation-led growth, strengthen domestic capital formation, and enhance India’s position as a global hub for deep-tech entrepreneurship.

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India Launches ₹10,000 Crore Startup FoF 2.0 to Accelerate Deep-Tech… | SEINET