The government is going to launch the second round of financial support to start-ups with a ₹10,000 crore fund of funds to mobile venture capital and back tech-driven innovative manufacturing start-ups, deep tech and early-growth stage enterprises.

This was the second part of the fund of funds (FoF) scheme under the Start-up India initiative. The first was established in 2016 when the government constituted a FoF worth ₹10,000 crore to provide seed capital.

Following the successful utilisation of the first tranche, a second phase of ₹10,000 crore was sanctioned in the Union Budget for 2025-26.

The new fund will have a targeted, segmented funding approach, prioritising breakthroughs in high-tech areas that require long-term capital.

The focus will also be on empowering early-growth stage founders to provide a safety net for new and innovative ideas, reducing early-stage failures caused by a lack of funding. Moreover, it will encourage investments beyond major metros so that innovation thrives in every corner of the country.

The statement said it has been designed to address high-risk capital gaps and strengthen India’s domestic venture capital base, particularly smaller funds.