The government has issued detailed guidelines for implementing the second tranche of the Rs 10,000 crore 'Fund of Funds' (FoF) scheme for startups. The Ministry of Commerce and Industry said that these guidelines include methods of fund usage, governance and monitoring, which are aimed at improving the efficiency of capital flow in India's startup ecosystem. The scheme will be implemented by giving commitments to Category I and II 'Alternative Investment Funds' (AIFs) registered with SEBI. These funds will invest in DPIIT approved startups.
SIDBI will be responsible
The ministry said that this approach is expected to ensure disciplined allocation of capital, encourage private investment and provide broader access to funding across different sectors, phases and geographies. The ministry said that 'Small Industries Development Bank of India' (SIDBI) will act as the initial 'implementing agency' and will implement the scheme through a systematic process of selection and monitoring of AIFs. The Department for Promotion of Industry and Internal Trade (DPIIT) will also engage an additional implementing agency to expand the reach of the scheme, enhance sector-specific expertise and develop institutional capacities to manage such schemes.
There are many categories divided
The ministry said that in order to address certain deficiencies present in the ecosystem, a systematic classification of AIFs has been made in these operational guidelines. Under this, AIFs are divided into funds focused on 'deep tech', 'micro venture capital funds' supporting early-stage startups, funds focused on innovation and technology-based manufacturing sectors, and funds that are not limited to any particular sector or stage (sector-agnostic).
What things will be taken care of?
The execution agency will do the initial investigation and 'due diligence' (in-depth review). After this, a 'Venture Capital Investment Committee' will evaluate the proposals. This committee will evaluate the proposals on the basis of the team's past record, fund management ability and investment strategy. This committee includes well-known stalwarts from industry, education and innovation ecosystem. These include Vallabh Bhansali, Ashok Jhunjhunwala, Renu Swarup, Chintan Vaishnav and Rajesh Gopinathan as well as representatives of the implementing agency.
-
Love Horoscope Today for Sunday, April 26, 2026: Gemini Will Receive Support from Friends, Know the Status of Other Signs
-
Sagittarius Tarot Horoscope Today, April 26, 2026: Avoid risky moves and stay calm through the day
-
Numerology Number 4 Prediction Today, April 26, 2026: Sweetness will increase in relationships, business connections will bring profit
-
Career Horoscope Today, April 26, 2026: Pisces Should Trust Hard Work, Find Out What Your Sign Says
-
Numerology Number 8 Prediction Today, April 26, 2026: Stay Active in Work, Strengthen Bonds with Loved Ones
