Union Cabinet approves Startup India Fund of Funds 2.0

The Union Cabinet has sanctioned the Startup India Fund of Funds 2.0, allocating ₹10,000 crore to bolster venture capital investments in the country's startup ecosystem. This initiative aims to enhance financial support for startups, fostering innovation and entrepreneurship across various sectors. By mobilizing additional resources, the government seeks to create a conducive environment for new businesses, which is crucial for India’s economic growth and job creation. The Fund of Funds will primarily channel investments into alternative investment funds (AIFs), which will, in turn, provide capital to startups. This move is part of the broader Startup India initiative launched in 2016, which has already made significant strides in promoting entrepreneurship. The government hopes that this new funding mechanism will further invigorate the startup landscape, allowing more entrepreneurs to access the capital needed to turn their ideas into viable businesses.