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Startup India Fund has been formally advised by the Union Government of Funds 2.0 (FoF 2.0), the total corpus of which is 10,000 crore, to raise funds in venture and growth capital for the ecosystem of startups in the country.

The scheme was announced on April 13, 2026, based on the success of the 2016 Fund of Funds, which had invested in 145 AIFs of 10,000 crore and catalyzed over 25,500 crore in investments across 1,370 companies. The new one is more segmented with a specific focus on deep-tech startups with longer R&D cycles, innovative manufacturing based on technology, and startup levels.

The money will be directly channeled via a fund (registered under the Alternative Investment Funds, or AIFs), which will allow an increase in government contribution in capital-heavy industries where a government contribution is controversial. The scheme will be implemented with the help of a powerful committee to oversee it with the help of SIDBI. Ecosystem activities such as mentorship and capacity building can be funded up to 5% of returns. This program will improve innovation and the creation of jobs in high-potential regions in a big way.