India Cabinet Approves Startup India Fund of Funds 2.0 to Boost Venture Capital

Cabinet approves Startup India Fund of Funds 2.0, a government‑backed vehicle designed to channel private capital into early‑stage Indian startups and strengthen the national innovation pipeline as part of the broader Startup India initiative.

Fund will operate as a second‑generation fund of funds, co‑investing with established venture firms, reducing risk for participants, and targeting high‑growth sectors such as fintech, healthtech and clean‑tech while aligning with policy goals.

Startup Ecosystem already hosts 131 unicorns and has attracted $8.09 billion in venture money this year, with four new unicorns joining the ranks, drawing global investor interest and prompting the new fund to sustain momentum.

Investors are expected to match government contributions, creating a pooled capital base that will sustain India’s climb to the world’s third‑largest startup market and generate jobs across technology sectors, while encouraging private sector participation.