What is the purpose of Fund of Funds for Startups?

Fund of Funds for Startups is a government welfare initiative designed to support Infra, Business Entity, Industries through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.

Who can apply for Fund of Funds for Startups?

Eligibility for Fund of Funds for Startups may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.

What benefits are offered under Fund of Funds for Startups?

Benefits under Fund of Funds for Startups may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.

Which department manages Fund of Funds for Startups?

Fund of Funds for Startups is managed by Department For Promotion Of Industry And Internal Trade and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.

Can users apply online for Fund of Funds for Startups?

Yes, eligible applicants may be able to apply online for Fund of Funds for Startups through official government portals, authorised service centres, or digital application systems depending on the implementation process.

Is Aadhaar mandatory for Fund of Funds for Startups?

Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.

Where can users apply for Fund of Funds for Startups?

Applications for Fund of Funds for Startups may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.

What documents may be required for Fund of Funds for Startups?

Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.

Is income certificate required for Fund of Funds for Startups?

Income certificate requirements may vary depending on beneficiary category, subsidy eligibility, and financial assistance criteria defined under Fund of Funds for Startups.

Is Fund of Funds for Startups a central government scheme?

Yes, Fund of Funds for Startups is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.

Can small and marginal farmers apply for Fund of Funds for Startups?

Eligible small and marginal farmers may apply for Fund of Funds for Startups subject to land ownership records, income eligibility, and agricultural beneficiary criteria.

Does Fund of Funds for Startups provide subsidy support for farmers?

Fund of Funds for Startups may provide agricultural subsidies, financial assistance, crop support, irrigation benefits, insurance coverage, or farming-related welfare assistance depending on the scheme structure.

Can students apply for Fund of Funds for Startups?

Eligible students studying in recognised institutions may apply for Fund of Funds for Startups depending on educational qualification, category, income limit, and academic eligibility.

Is scholarship amount provided under Fund of Funds for Startups?

Fund of Funds for Startups may provide scholarship assistance, tuition support, educational reimbursement, or financial aid for eligible students.

Does Fund of Funds for Startups provide healthcare or insurance support?

Fund of Funds for Startups may provide healthcare assistance, insurance coverage, cashless treatment support, medical reimbursement, or hospital-related benefits depending on the scheme structure.

Can beneficiaries use Fund of Funds for Startups at government hospitals?

Eligible beneficiaries may be able to access services at empanelled hospitals, government healthcare facilities, or authorised healthcare providers depending on scheme participation rules.

Does Fund of Funds for Startups provide business loan or startup assistance?

Fund of Funds for Startups may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.

Is collateral required under Fund of Funds for Startups?

Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.

Can CSC centres help users apply for Fund of Funds for Startups?

Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.

How can users check the latest updates for Fund of Funds for Startups?

Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.

Are there deadlines for applying to Fund of Funds for Startups?

Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.

Can beneficiaries track application status for Fund of Funds for Startups?

Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.

Where can users get help for Fund of Funds for Startups in All India?

Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.

Which nearby public services may help with Fund of Funds for Startups applications?

Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.

FFS

Fund of Funds for Startups

6.8/10

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.

Central Cash

States / UT: All India

Ministry / nodal: Ministry Of Commerce And Industry

Nodal department: Department For Promotion Of Industry And Internal Trade

Scheme for: Infra

Scheme profile

DBT (direct benefit transfer): No

Scheme open date: 2016-01-16

Categories: Business & Entrepreneurship, Banking,Financial Services and Insurance, Science, IT & Communications, Agriculture,Rural & Environment, Health & Wellness, Education & Learning

Target beneficiaries: Business Entity, Industries

Tags: DPIIT, Startup India, Startups, AIF, Equity

Details

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

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

Equity/ equity linked instruments-based funding to startups.
Mentorship through experienced AIF managers along with market connects, governance structure.
Mobilisation of capital, attracting private investors and mobilising larger capital for startups.
Support for innovation-driven enterprises, fostering job creation and economic growth.
Strengthens India’s venture capital ecosystem and promotes entrepreneurship.
AIFs must invest at least twice SIDBI’s contribution creating a multiplier effect, scheme helped mobilise more than ₹90,000 crore through AIF.

Eligibility

Under FFS support is provided to AIFs. Below are the key eligibility criteria for applying for contribution under FFS
• Funds are registered as either Category I or II Alternative Investment Funds (AIF) with Securities and Exchange Board of India (SEBI) or have applied for the same with SEBI.
• Funds with corpus of less than Rs 1,000 crores.
• Fund`s investment strategy to include investment in startups (Startup as defined as per the Gazette Notification G.S.R.127(E) dt. 19/02/2019 issued by Government of India and as amended from time to time).
• Fund to agree to invest at least twice the amount of contribution sought from FFS into Startups. (For instance, if contribution sought is Rs 100 crore under FFS, Fund should invest at least Rs 200 crore in Startups).
• Fund Manager / team should have prior track record in Fund management or prior investment experience. All the Key members of the Fund should have CIBIL score more than 650 (Key member is defined as Director, Sponsor and Senior Personnel of the Fund).
• All the Key members should be legally eligible to be a Director or in a Managerial position under Indian law (i.e., not barred to be a Director or in a Managerial position under Indian Law).
• Startup should be up to 10 years old from the date of incorporation.
• Must be DPIIT-recognized.
• Should be working on innovation, development, or improvement of products, processes, or services.
• Funding is indirect, through SEBI-registered AIFs supported by SIDBI.

How useful is this scheme?

Public benefit analysis

A practical look at this scheme for citizens

AI-generated insights showing how useful, accessible, and practical this scheme may be — combining deterministic scoring rules with a public-policy LLM analyst.

6.8

/ 10

Public Benefit Score

Accessibility 6.0/10 Moderate

Rural usefulness 5.0/10 Moderate

Application complexity 5.0/10 Moderate

Financial impact 9.5/10 Good

Literacy barrier 7.0/10 Challenging

Women inclusivity 6.0/10 Moderate

Awareness 7.5/10 Good

Implementation reliability 8.0/10 Good

Bigger shape means a better fit for citizens

Accessibility6.0
Financial impact9.5
Rural utility5.0
Awareness7.5
Simplicity5.0
Inclusivity6.0

What problem does this scheme solve?

The Fund of Funds for Startups provides significant support for startups through indirect funding via AIFs, promoting innovation and entrepreneurship.

Key challenges addressed

Access to funding for startups
Encouragement of innovation and entrepreneurship

Most beneficial for

DPIIT-recognized startups
Investment funds looking to support startups

Likely challenges

Complex application process
Eligibility criteria may exclude some potential applicants

Practical insights for citizens

While the scheme aims to support startups, the complexity may deter many potential applicants.

Rural challenges

Limited access to digital infrastructure
Lack of awareness among rural entrepreneurs

Digital challenges

High digital dependency may exclude non-digital users

Implementation bottlenecks

Complex eligibility criteria
Lengthy application process

Awareness challenges

Limited outreach to potential beneficiaries

Application analysis

Application mode: Online portal
Documents burden: High due to multiple steps and detailed documentation required
Verification complexity: High, involving multiple assessments and meetings
Office dependency: Low, primarily online
DBT dependency: No direct benefit transfer involved
CSC support: Limited, primarily online
Estimated citizen effort: High due to the detailed application process

Estimated beneficiary reach

Rural / urban reach Moderate
Gender reach Moderate
Occupation reach Business entities and industries

Benefit analysis

Benefit type: Cash
Benefit frequency: One-time funding through AIFs
Benefit practicality: High, but indirect and dependent on AIFs' performance
Financial meaningfulness: High, as it mobilizes significant capital for startups
Long-term impact: Positive, fostering a stronger startup ecosystem and economic growth

Plain-language guidance

The Fund of Funds for Startups helps startups get funding through registered investment funds. It supports innovative businesses and encourages entrepreneurship.

Who should apply: DPIIT-recognized startups and investment funds looking to support them.
Who may struggle: First-time applicants and those unfamiliar with online processes.
Best application route: Apply via the online portal after confirming eligibility.

This intelligence section is generated by an AI policy analyst combined with rule-based scoring. Scores and narrative are estimates derived from the publicly available scheme information shown on this page; actual experience may vary by state, district, and department. Always confirm details on the official portal before you apply.

Application Process

Online

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.

Clarifications

Additional points from the scheme information published on myScheme (not legal advice).

Does SIDBI charge any processing fee for evaluating proposals under FFS?: No, SIDBI does not charge any processing fee for evaluating proposals under the FFS programme.
Are category I Funds eligible under FFS?: Yes, all AIFs registered under SEBI AIF Regulations, 2012 (Category I and II) are eligible.
Is there any corpus limit for AIFs under FFS?: Yes, AIFs with a corpus of less than ₹1,000 crore are eligible for funding under the FFS scheme. Through modifications under FFS regulations, AIFs with a corpus exceeding ₹1,000 crore can also be supported, subject to the following conditions: • IM must be a domestic entity. • The IM or its key personnel should have previously managed funds to which SIDBI has committed in the past. • SIDBI’s exposure to such funds will be capped at the same level applicable to funds with a corpus of ₹1,000 crore.
Does SIDBI or Government of India have a say in the investment decisions of the AIF?: No, investment decisions of investing in any startups are taken by the investment committee of respected AIF.
What are the general covenants for AIFs under FFS?: AIFs must maintain high standards of corporate governance, investor reporting, and comply with SEBI, RBI guidelines.
What is the definition of a Startup under FFS?: Age: Up to 10 years from incorporation/registration date. Turnover must not have exceeded ₹100 Crore in any financial year since incorporation. It must be incorporated as a Private Limited Company, a Registered Partnership Firm, or a Limited Liability Partnership (LLP) in India. Additionally, it is working towards innovation, development, or improvement of products, processes, or services, with potential for high scalability, employment generation, or wealth creation.
Are AIFs required to be registered with SEBI before approaching SIDBI?: Yes, SEBI registration is mandatory before applying to SIDBI.
Do startups under FFS need to be registered with the DPIIT?: Yes, its mandatory.
Is there any sector-specific eligibility for startups under FFS?: No, FFS is sector-agnostic.
Can AIFs invest in foreign entities under FFS?: Generally, investments should be in Indian entities. Investments abroad are allowed only as per SEBI/RBI guidelines, but they do not count toward the multiplier condition.
When must AIFs fulfill the condition of investing twice the amount received from FFS?: This condition must be met by the end of the commitment period of the Fund, with compliance status reported periodically.
What is the term of AIFs under FFS?: Typically, 8–10 years from Final Closing, not exceeding 12 years.
Can AIFs make warehoused investments before First Closing?: Yes, they can, and such investments can later be acquired by the Fund at cost without holding charges.
Who decides the investments under AIFs supported by FFS?: While the VCIC recommends the proposal, final decision of the investment is taken by Executive Committee of SIDBI.
What reporting and compliance requirements apply to AIFs under FFS?: AIFs must maintain proper records, appoint auditors acceptable to SIDBI, and comply with SEBI, RBI, and KYC norms.

Official links

References

Fund Of Funds Website: https://www.sidbivcf.in/en/funds/ffs
Fund Of Funds Guidelines: https://www.sidbivcf.in/en/funds/ffs

Apply

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Frequently asked questions

What is the purpose of Fund of Funds for Startups?: Fund of Funds for Startups is a government welfare initiative designed to support Infra, Business Entity, Industries through benefits related to Business & Entrepreneurship, financial assistance, subsidies, social welfare, healthcare, education, or livelihood support.
Who can apply for Fund of Funds for Startups?: Eligibility for Fund of Funds for Startups may depend on factors such as income category, age, gender, occupation, state of residence, social category, and government-defined beneficiary criteria.
What benefits are offered under Fund of Funds for Startups?: Benefits under Fund of Funds for Startups may include financial assistance, subsidies, scholarships, insurance support, healthcare benefits, pension support, training assistance, or welfare services depending on the scheme guidelines.
Which department manages Fund of Funds for Startups?: Fund of Funds for Startups is managed by Department For Promotion Of Industry And Internal Trade and may be implemented through district offices, online portals, CSC centres, banks, or authorised government agencies.
Can users apply online for Fund of Funds for Startups?: Yes, eligible applicants may be able to apply online for Fund of Funds for Startups through official government portals, authorised service centres, or digital application systems depending on the implementation process.
Is Aadhaar mandatory for Fund of Funds for Startups?: Many government schemes may require Aadhaar verification, identity proof, or linked bank account details for beneficiary validation and direct benefit transfer processing.
Where can users apply for Fund of Funds for Startups?: Applications for Fund of Funds for Startups may be submitted through government departments, official scheme portals, CSC centres, district offices, welfare departments, or authorised service centres.
What documents may be required for Fund of Funds for Startups?: Applicants may need Aadhaar card, income certificate, residence proof, bank account details, caste certificate, photographs, educational records, or occupation-related documents depending on scheme eligibility requirements.
Is income certificate required for Fund of Funds for Startups?: Income certificate requirements may vary depending on beneficiary category, subsidy eligibility, and financial assistance criteria defined under Fund of Funds for Startups.
Is Fund of Funds for Startups a central government scheme?: Yes, Fund of Funds for Startups is a central government welfare initiative that may be implemented across multiple states through authorised departments and agencies.
Can small and marginal farmers apply for Fund of Funds for Startups?: Eligible small and marginal farmers may apply for Fund of Funds for Startups subject to land ownership records, income eligibility, and agricultural beneficiary criteria.
Does Fund of Funds for Startups provide subsidy support for farmers?: Fund of Funds for Startups may provide agricultural subsidies, financial assistance, crop support, irrigation benefits, insurance coverage, or farming-related welfare assistance depending on the scheme structure.
Can students apply for Fund of Funds for Startups?: Eligible students studying in recognised institutions may apply for Fund of Funds for Startups depending on educational qualification, category, income limit, and academic eligibility.
Is scholarship amount provided under Fund of Funds for Startups?: Fund of Funds for Startups may provide scholarship assistance, tuition support, educational reimbursement, or financial aid for eligible students.
Does Fund of Funds for Startups provide healthcare or insurance support?: Fund of Funds for Startups may provide healthcare assistance, insurance coverage, cashless treatment support, medical reimbursement, or hospital-related benefits depending on the scheme structure.
Can beneficiaries use Fund of Funds for Startups at government hospitals?: Eligible beneficiaries may be able to access services at empanelled hospitals, government healthcare facilities, or authorised healthcare providers depending on scheme participation rules.
Does Fund of Funds for Startups provide business loan or startup assistance?: Fund of Funds for Startups may support entrepreneurs, startups, self-employed individuals, MSMEs, or small businesses through financial assistance, subsidies, credit support, or training initiatives.
Is collateral required under Fund of Funds for Startups?: Collateral requirements may vary depending on the loan amount, implementing agency, financial institution, and government subsidy structure.
Can CSC centres help users apply for Fund of Funds for Startups?: Many government schemes may be accessible through nearby CSC centres, authorised digital service centres, or welfare facilitation offices.
How can users check the latest updates for Fund of Funds for Startups?: Users should verify official notifications, department announcements, application deadlines, and eligibility updates through authorised government portals or implementing agencies.
Are there deadlines for applying to Fund of Funds for Startups?: Some schemes may operate through fixed application windows, annual registration cycles, or department-specific deadlines depending on scheme implementation policies.
Can beneficiaries track application status for Fund of Funds for Startups?: Certain schemes may provide online application tracking, beneficiary verification systems, or status-check facilities through official portals.
Where can users get help for Fund of Funds for Startups in All India?: Users in All India may seek assistance through CSC centres, district welfare offices, government departments, agriculture offices, social welfare departments, or authorised facilitation centres.
Which nearby public services may help with Fund of Funds for Startups applications?: Depending on the scheme, users may require support from Aadhaar centres, CSC centres, banks, hospitals, post offices, or government welfare offices for document verification and application assistance.