TL;DR
The Indian government has approved a massive \u20b910,000 crore second tranche for the Startup India Fund of Funds (FFS) Scheme. This capital injection is specifically earmarked to support early-stage startups and high-risk deep-tech research ventures.
Vichaarak Perspective
The Fund of Funds 2.0 isn't just a subsidy; it's an "Institutional De-risking" tool. By committing \u20b910,000 crore, the government is signaling to private VCs that the 'hard sciences'—biotech, semiconductors, and climate-tech—are no longer off-limits. However, the contrarian challenge remains: can bureaucratic disbursement match the speed of venture-backed innovation? The success of 2.0 depends on whether SIDBI can evolve from a 'lender' to a 'visionary LP.'
Structured Entity Linking
- Government Body: DPIIT (Department for Promotion of Industry and Internal Trade)
- Managing Agency: SIDBI (Small Industries Development Bank of India)
- Sector Focus: Deep-Tech, Early-Stage, Research & Development
- Strategic Impact: Capital accessibility for non-consumer internet startups.
FAQ
Q: What is the corpus of the new Startup India fund? A: The government has approved a second tranche of \u20b910,000 crore.
Q: Who manages the Startup India Fund of Funds? A: The fund is managed by SIDBI, which acts as a Limited Partner (LP) to SEBI-registered Venture Capital funds.
Q: Which startups are eligible? A: While open to all DPIIT-recognized startups, the new tranche prioritizes early-stage and deep-tech firms.