Boosting Startups: New Fund of Funds Scheme Announced

The government launched a new Fund of Funds Scheme with a Rs 10,000 crore corpus to support entrepreneurs, extending incorporation eligibility by five years. The initiative aims to enhance venture capital investments and bolster the startup ecosystem through strengthened public-private capital infusion.

The government on Saturday unveiled a significant initiative aimed at propelling the nation's startup ecosystem forward. A new Fund of Funds Scheme (FFS) has been introduced, boasting a robust Rs 10,000 crore corpus. Alongside this, the startup incorporation period has been extended by five years to foster entrepreneurial growth.

Originating in 2016, the FFS has catalyzed venture capital investments, with Small Industries Development Bank of India (SIDBI) at its helm, channeling capital to SEBI-registered AIFs. These Alternate Investment Funds have accepted commitments exceeding Rs 91,000 crore, supported by the government's Rs 10,000 crore contribution.

Expanding on this success, the Finance Minister Nirmala Sitharaman, announced a fresh Rs 10,000 crore Fund of Funds, poised to further fuel ventures and enable high-growth entity development. Enhanced credit access and a Deep Tech Fund of Funds are also expected to provide cheaper debt capital and spur innovation in startups.

(With inputs from agencies.)