The Department for Promotion of Industry and Internal Trade (DPIIT) has officially issued guidelines for the ₹10,000 crore Startup India 2.0, aiming to provide crucial capital to early-stage startups.
₹10,000 crore
Fund Corpus
The Department for Promotion of Industry and Internal Trade (DPIIT) has officially released the detailed guidelines for the **₹10,000 crore Startup India Fund of Funds (FoF) 2.0**. This marks a significant milestone in boosting capital availability for Indian startups, particularly in their early stages. The FoF 2.0 operates as a 'fund of funds,' meaning it invests in SEBI-registered Alternative Investment Funds (AIFs) which, in turn, inject capital into promising startups. The guidelines outline eligibility criteria for AIFs, investment limits, and monitoring mechanisms, ensuring strategic deployment of funds across various sectors. This initiative is expected to attract more private capital into the startup ecosystem and foster innovation nationwide.
💭 If you're wondering…
An Alternative Investment Fund (AIF) is a privately pooled investment vehicle that collects funds from sophisticated investors, whether Indian or foreign, for investing in accordance with a defined investment policy for the benefit of its investors. They often invest in illiquid assets like private equity, venture capital, and real estate.
Did this story help?
Official sources
Knowledge Chain — tap a concept