The government has rolled out a new ₹10,000 crore fund to support startups, giving a fresh push to India’s growing innovation ecosystem.
The initiative, called Startup India Fund of Funds 2.0, is designed to help startups, especially those in early stages, get better access to funding. Many young companies struggle to raise money in their initial years, and this fund aims to ease that challenge.
Instead of investing directly in startups, the government will route the money through investment funds. These funds will then support promising startups across sectors. This approach is expected to attract more private investors and create a stronger funding network.
A key focus of the new fund will be on deep-tech sectors such as artificial intelligence, robotics, and advanced manufacturing. These areas often require larger investments and longer time to grow, making funding harder to secure.
The scheme also aims to support startups beyond major cities, helping businesses in smaller towns and emerging hubs. By doing so, the government hopes to spread innovation more evenly across the country.
This is the second phase of the Startup India fund. The first phase, launched in 2016, helped several startups grow by improving access to capital and encouraging investor participation. The new phase builds on that effort with a sharper focus on future-ready technologies.
India’s startup ecosystem has grown rapidly in recent years, with thousands of new companies entering the market. However, many still face funding gaps, especially in high-risk or capital-intensive sectors.
Officials believe this fund will help bridge that gap and encourage more investment into innovative ideas. It is also expected to create jobs and support long-term economic growth.
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