DPIIT issues operational guidelines for Rs 10,000 crore Startup India Fund of Funds 2.0 scheme
The Department for Promotion of Industry and Internal Trade (DPIIT) has issued operational guidelines for the Rs 10,000 crore Startup India Fund of Funds 2.0 scheme. The guidelines aim to improve the efficiency of capital flows into India's startup ecosystem through clearly defined mechanisms for fund deployment, governance, and monitoring.
The DPIIT has issued operational guidelines for the Startup India Fund of Funds 2.0 scheme, a Rs 10,000 crore corpus. The scheme will be implemented through commitments to Sebi-registered Category I and II Alternative Investment Funds (AIFs), which will invest in DPIIT-recognised startups. The guidelines introduce a structured segmentation of AIFs into deep tech-focused funds, micro venture capital funds, and sector-agnostic funds. A two-stage selection process for AIFs will be undertaken, involving initial screening and due diligence, followed by evaluation by a Venture Capital Investment Committee. The scheme is designed to act as a catalyst, enabling multiplier effects through private capital participation, and mandates minimum private capital mobilisation. The operational framework allows for co-investments and contributions from Ministries, Departments, and institutional investors in priority sectors.
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