♦ The government on 13 Febuary 2026 approved the second tranche of the Startup India Fund of Funds Scheme with a corpus of Rs.10,000 crore, aimed at encouraging early-stage startups and deep-tech research. 

♦ These entities are eligible for incentives under the Startup India action plan. The scheme was designed to catalyse venture capital investments and is operationalised by Small Industries Development Bank of India (SIDBI), which provides capital to Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs), which in turn invest in startups.

♦ AIFs supported under the Fund of Funds Scheme (FFS) are required to invest at least two times the amount committed under FFS in startups. DPIIT is the monitoring agency, while SIDBI is the operating agency for the FFS.