New Delhi, February 14 The Cabinet has approved the second tranche of the Startup India Fund of Funds Scheme, with a corpus of ₹10,000 crore, Union Minister Ashwini Vaishnaw said on Saturday.
The key focus will be on deep tech startups, early-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 contributions in Alternative Investment Funds (AIFs) to fund deep tech and high-tech manufacturing, the minister said.
The Union Cabinet approved the scheme in a meeting on Friday.
The fund will encourage long-term investing and patient capital.
In 2016, the government had constituted a Fund of Funds worth ₹10,000 crore to provide seed capital and enable startups to take calculated risks.
Following the successful utilization of the first tranche, a second phase of ₹10,000 crore was sanctioned in the Union Budget for 2025-26.
So far, over 2 lakh entities have been recognized 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.
