In a major push for innovation, the Indian government has approved the Rs 10,000 crore Startup India Fund of Funds 2.0 (SIFoF 2.0). Announced on February 12, 2026, this initiative targets deep-tech and early-growth startups, building on the success of the original Rs 10,000 crore fund launched in 2016. The first SIFoF supported over 1,000 startups with Rs 12,000 crore in investments through 99 daughter funds, creating 1.2 lakh jobs and unicorn successes like Paytm and BigBasket. Now, SIFoF 2.0 aims to channel funds to high-risk sectors like AI, biotech, quantum computing, and space tech. It will invest Rs 10,000 crore over five years via SEBI-registered Category-II Alternative Investment Funds (AIFs), focusing on startups with prototypes or early revenue.
Union Minister Piyush Goyal hailed it as a “game-changer” for Atmanirbhar Bharat, aligning with India’s goal to become a $1 trillion digital economy by 2028. Deep-tech startups, which received just 8% of $25 billion VC funding in 2025, stand to gain most. Early-growth firms (Series A/B stage) will access patient capital, reducing reliance on foreign investors amid global slowdowns.
This comes as India’s startup count hits 1.59 lakh (as of January 2026), with 118 unicorns valued at $350 billion. SIFoF 2.0 prioritizes underserved regions like Northeast India and supports women-led ventures, aiming for 50,000 new jobs by 2030.
FAQs [Frequently Asked Questions]
1. What is Startup India Fund of Funds 2.0?
It’s a Rs 10,000 crore government scheme investing in AIFs to fund deep-tech and early-growth startups, continuing the 2016 program’s success. (18 words)
2. Which sectors will it support?
Focuses on deep-tech like AI, biotech, quantum, and space tech, plus early-stage firms with prototypes or revenue in high-risk innovations. (20 words)
3. How does it differ from SIFoF 1.0?
SIFoF 1.0 backed 1,000+ startups with Rs 12,000 crore; 2.0 targets deep-tech more aggressively for jobs and self-reliance amid funding gaps. (22 words)
4. When and how to apply?
Launched February 2026; startups apply via startupindia.gov.in through SEBI-registered AIFs. Prioritizes Northeast and women-led ventures.