The Union Cabinet on February 14, 2026 approved the Startup India Fund of Funds 2.0 (FoF 2.0) with a total corpus of ₹10,000 crore, targeting deep-tech innovation, early-stage startups, and technology-based manufacturing ventures. This second phase builds on the original Startup India FoF launched in 2016 and is designed to promote long-term investment and strengthen India's startup ecosystem.

FoF 2.0 will operate as a fund-of-funds model — meaning the government will not invest directly in startups but will channel capital through SEBI-registered Alternative Investment Funds (AIFs) that, in turn, invest in startups. The corpus prioritises deep-tech verticals including artificial intelligence, semiconductors, quantum computing, advanced manufacturing, green technology, biotechnology, and space tech — all critical for India's aspiration to lead in emerging technologies by 2047.

India is currently home to over 2 lakh DPIIT-recognised startups, making it the third-largest startup ecosystem globally. The scheme complements the Production Linked Incentive (PLI) schemes and the newly approved Urban Challenge Fund in creating a holistic innovation-to-industry pipeline. For Rajasthan, the scheme is relevant given the state's growing startup hubs in Jaipur (recognised as a top-tier startup city) and the recently announced Rajasthan Testing Agency (RTA) and RISE schools pipeline as a human capital feeder for the innovation economy.