Central GovernmentVerified

Fund of Funds for Startups

Ministry: Ministry Of Commerce And Industry

Department: Department For Promotion Of Industry And Internal Trade

Launched in January 2016 under Startup India, the Fund of Funds for Startups is managed by SIDBI. It supports DPIIT-recognized startups indirectly by investing in SEBI-registered AIFs, which must invest at least twice the FFS contribution.

Start date16 Jan 2016

Last verifiedToday

About This Scheme

To meet the funding needs of startups, Government of India has established Fund of Funds for Startup (FFS) under Startup India Programme. Corpus of the FFS is ₹10,000 crore. DPIIT, Government of India is the monitoring agency and SIDBI is the operating agency for FFS. As per the operating guidelines, FFS contributes to the corpus of SEBI registered Alternative Investment Funds (AIFs). These AIFs in turn have to invest at least twice the contribution under FFS, in ‘startups’ as defined by the Government of India gazette notification. The objective of FFS is to provide equity support to startups and encourage innovation and entrepreneurship. It targets DPIIT-recognized startups working in technology, research, and innovation across various sectors. A key feature is the multiplier effect, AIFs must invest at least twice the amount contributed by SIDBI, ensuring more funds flow into the ecosystem. Benefits include access to patient capital, mentorship, and industry networks. The scheme also boosts credibility for startups, making it easier to attract follow-on investments. With an initial corpus of ₹10,000 crore, FFS has supported thousands of startups and promoting innovation. Overall, it plays a vital role in building a strong venture capital market and driving India’s economic growth through entrepreneurship.

Benefits

₹90000.0 Cr

1) Equity/ equity linked instruments-based funding to startups.

2) Mentorship through experienced AIF managers along with market connects, governance structure.

3) Mobilisation of capital, attracting private investors and mobilising larger capital for startups.

4) Support for innovation-driven enterprises, fostering job creation and economic growth.

5) Strengthens India’s venture capital ecosystem and promotes entrepreneurship.

6) AIFs must invest at least twice SIDBI’s contribution creating a multiplier effect, scheme helped mobilise more than ₹90,000 crore through AIF.

Eligibility

Note: You may be eligible based on the information shown. Please verify the official eligibility requirements before applying.

Required Documents

✦
) AIF registration certificate
✦
) IM Agreement
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) Past Track record (If any)
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) PPM (Private Placement Memorandum)
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) AIF and Fund’s Financials
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) Trust Deed
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) Contributors Details
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) Startup Certificate
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) KYC Documents (Aadhar Card, Pan Card (Individual and Company), Financials, CIBIL Score)
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In case of startups, please visit AIF’s website.

✦ Required ◦ Optional

How to Apply

OOnline

Step 1: Eligibility Screener and Registration

Initial check to confirm applicant meets basic eligibility criteria and registration on the portal.

Step 2: Preliminary Questionnaire

Collection of key details about the fund, strategy, and compliance for initial assessment.

Step 3: Feedback, Go / No-Go

Questionnaire helps in decision making on whether the proposal moves forward based on preliminary review.

Step 4: First Meeting

Introductory discussion to understand fund objectives, structure, and alignment with FFS goals.

Step 5: Detailed Application

Submission of comprehensive documents including fund strategy, team credentials, and compliance.

Step 6: Due Diligence Completed

Detailed evaluation of fund strategy, Fund manager past experience, governance, and operational aspects of the fund.

Step 7: Second Meeting, Feedback & Terms Discussion

Discussion on due diligence findings and key terms & conditions.

Step 8: VCIC Appraisal Memo Submission

Preparation and submission of Venture Capital Investment Committee (VCIC) appraisal summarizing evaluation and recommendations.

Step 9: Present to VCIC Investment Committee

Formal presentation to the VCIC for approval and strategic fit assessment.

Step 10: SIDBI’s Executive Committee

Final review and approval by SIDBI’s Executive Committee for sanctioning investment.

Step 11: Final Feedback, Post IC & EC, Issue of LOI

Communication of decision and issuance of Letter of Intent (LoI) to the selected fund.

Step 12: Agreements Finalisation

Drafting and signing of legal agreements to formalize the investment commitment.

Step 13: Onboarded for the Fund Lifecycle

Completion of onboarding and monitoring throughout the fund’s lifecycle.

Quick Info

Level: Central Government
Max benefit: ₹90000.0 Cr
Launched: 16 Jan 2016