Why in the News?
- Government notified Startup India FoF 2.0 (April 13, 2026) with a ₹10,000 crore corpus to boost startup funding.
About FoF 2.0
What it is
- A government-backed Fund of Funds
- Invests in: Alternative Investment Funds
- These AIFs then invest in startups
- Indirect funding mechanism (not direct investment)
Institutional Framework
- Nodal Department: Department for Promotion of Industry and Internal Trade
- Implementation Agency: Small Industries Development Bank of India
- Regulator for AIFs: Securities and Exchange Board of India
Background
- FoF 1.0 (2016) under Startup India Action Plan
- FoF 2.0 builds on it with:
- More focus on advanced technologies
- Stronger capital mobilization
| [2025] With reference to investments, consider the following: I. Bonds II. Hedge Funds III. Stocks IV. Venture Capital How many of the above are treated as Alternative Investment Funds? (a) Only one (b) Only two (Hedge Funds and Venture Capital) (c) Only three (d) All the four |
