ENA Sectors 2026-02-16 14:29:58 <p><span style="font-size:14px"><strong>New Delhi, Feb 16 (KNN)</strong> The Union Cabinet has approved the establishment of Startup India Fund of Funds 2.0 (Startup India FoF 2.0) with a total corpus of Rs 10,000 crore to mobilise venture capital for the countrys startup ecosystem.</span></p> <p><span style="font-size:14px">The new fund aims to accelerate the next phase of Indias startup growth by unlocking long-term domestic capital, deepening the venture capital landscape and strengthening innovation-driven entrepreneurship across sectors.</span></p> <p><span style="font-size:14px">Launched under the Startup India programme, the second phase of the Fund of Funds builds on nearly a decade of policy support. Since 2016, the number of startups recognised by the Department for Promotion of Industry and Internal Trade (DPIIT) has increased from fewer than 500 to over 2 lakh, with 2025 recording the highest annual registrations so far.</span></p> <p><span style="font-size:14px">According to an official statement issued by the Ministry of Commerce and Industry, Startup India FoF 2.0 has been structured with a targeted and segmented funding approach.</span></p> <p><span style="font-size:14px">The scheme will prioritise deep-tech and technology-driven innovative manufacturing, focusing on sectors that require patient, long-term capital support. It will also seek to empower early-growth stage founders by addressing funding gaps that often lead to early-stage failures.</span></p> <p><span style="font-size:14px">The fund aims to expand its national footprint by encouraging investments beyond major metropolitan centres, ensuring that innovation ecosystems develop across tier-II and tier-III cities. </span></p> <p><span style="font-size:14px">It is also designed to address high-risk capital gaps in strategic and priority areas critical for self-reliance and long-term economic growth.</span></p> <p><span style="font-size:14px">In addition, the initiative is expected to strengthen Indias domestic venture capital base, with a particular emphasis on supporting smaller and emerging fund managers to broaden the investment landscape.</span></p> <p><span style="font-size:14px">The government said the fund would play a pivotal role in advancing Indias innovation-led growth agenda by backing globally competitive technologies, products and solutions. </span></p> <p><span style="font-size:14px">It is expected to contribute to economic resilience, manufacturing expansion and high-quality job creation, while positioning India as a global innovation hub.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span><br /> </p> 45159 https://knnindia.co.in/news/newsdetails/sectors/cabinet-approves-rs-10000-crore-startup-india-fund-of-funds-20 2026-02-16 14:29:58 knnindia.co.in