Centre urges states and UTs to back ₹10,000cr FoF 2.0
The government wants states and union territories to join forces and invest in the ₹10,000 crore Startup India Fund of Funds (FoF) 2.0, instead of running separate funding schemes.
This move is all about giving startups, especially those in smaller cities and high-tech sectors like deep tech and advanced manufacturing, a better shot at funding and growth.
FoF 2.0 expands categories, extends tenure
States are being nudged to align their incubators with key industries and help build a stronger pipeline for investment-ready startups beyond just big metros.
FoF 2.0 now targets four categories: deep tech, manufacturing, micro venture capital, and agnostic funds (a shift from the original's one-size-fits-all approach).
The government has also raised its maximum contribution to these funds from 25% to 40%, plus extended support for deep-tech and manufacturing ventures up to 18 years, so there's more time for ambitious ideas to grow roots in smaller cities.