Finance Minister Nirmala Sitharaman announced a fresh round of the Fund of Funds for Startups (FFS) scheme with a corpus of Rs 10,000 crore to support the growth of emerging entrepreneurs. The move underscores the government’s focus on fostering innovation and promoting startup ecosystems.
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Boosting Startup Growth with Increased Funding
This initiative is particularly significant as it aims to provide critical funding to startups across various stages, from early to growth stages. The Department for Promotion of Industry and Internal Trade (DPIIT) has already recognized over 1.5 lakh startups, reflecting the growing entrepreneurial landscape in the country.
A Decade-Long Initiative to Encourage Innovation
The Fund of Funds for Startups scheme, first launched in 2016, has already played a crucial role in meeting the capital requirements of startups, while also encouraging the creation of homegrown venture capital funds. Managed by DPIIT and operated by the Small Industries Development Bank of India (SIDBI), the scheme aims to reduce startups’ reliance on foreign funding and promote domestic venture capital.
The Rs 10,000 crore corpus will be provided over the 14th and 15th Finance Commission cycles, based on progress and the availability of funds, further fueling India’s startup ecosystem and innovation-driven growth.
