Fund of Funds for Startups 2026: Equity Support, Eligibility & How to Apply

At a glance

About the scheme

Established under the Startup India Programme by the Ministry of Commerce and Industry, the Fund of Funds for Startups (FFS) operates with a dedicated corpus of ₹10,000 crore to address early-stage capital requirements. Rather than investing directly in companies, the scheme channels resources through SIDBI into SEBI-registered Category I and II Alternative Investment Funds (AIFs). In turn, these funds are required to invest at least twice the received amount into DPIIT-recognised Indian startups. This structure ensures access to patient capital, industry connections, and hands-on governance support, fostering domestic entrepreneurship and strengthening India's venture ecosystem.

Benefits

• Equity and equity-linked financing for innovative Indian startups.
• Mentorship, governance support, and market connects provided by experienced AIF managers.
• Multiplier effect requiring AIFs to invest at least double the contribution received under FFS into startups.
• Access to patient capital from an overall government corpus of ₹10,000 crore.
• Enhanced business credibility, easing the process of raising follow-on venture rounds.

Who can apply (eligibility)

• Startups must be recognised by the Department for Promotion of Industry and Internal Trade (DPIIT).
• Startup entity must be incorporated as a Private Limited Company, Registered Partnership Firm, or Limited Liability Partnership (LLP) in India.
• Startup must not be older than 10 years from the date of incorporation or registration.
• Startup turnover must not have exceeded ₹100 crore in any financial year since incorporation.
• Startup must focus on innovation, development, or improvement of products, processes, or services with scalability potential.
• AIFs applying for FFS capital must be registered as Category I or II with SEBI (or have applied for SEBI registration).
• AIFs generally must have a fund corpus of less than ₹1,000 crore (or meet specified domestic criteria if exceeding ₹1,000 crore).
• Key members of the AIF (directors, sponsors, senior personnel) must possess a CIBIL score above 650 and be legally eligible to hold directorship or managerial posts in India.

Who cannot apply

• Investments made by AIFs in foreign entities do not count towards the mandatory 2x startup multiplier requirement.
• Enterprises older than 10 years or those with annual turnover exceeding ₹100 crore are not eligible to receive funding as startups under FFS.

Documents required

• SEBI AIF registration certificate
• Investment Management (IM) Agreement
• Private Placement Memorandum (PPM)
• Trust Deed
• Contributors details and financial statements of the AIF and fund
• Past track record of the fund manager or investment team (if any)
• DPIIT Startup Recognition Certificate
• KYC documents including Aadhaar Card, PAN Card (individual and entity), financials, and CIBIL score

How to apply

1. 1Check baseline parameters using the eligibility screener and register on the official portal.
2. 2Fill in the preliminary questionnaire with information regarding fund structure, compliance, and strategy.
3. 3Receive initial go or no-go feedback based on the preliminary assessment.
4. 4Participate in the introductory first meeting to discuss fund alignment with FFS objectives.
5. 5Submit the detailed application dossier including team credentials, investment policies, and compliance records.
6. 6Undergo comprehensive due diligence covering governance, operational capabilities, and manager experience.
7. 7Attend the second meeting to discuss due diligence observations along with terms and conditions.
8. 8Await drafting and submission of the Venture Capital Investment Committee (VCIC) appraisal memo.
9. 9Deliver the formal presentation before the VCIC for review and recommendation.
10. 10Undergo final review and approval by SIDBI's Executive Committee for sanctioning investment.
11. 11Receive communication of the sanction and the official Letter of Intent (LoI).
12. 12Finalise and execute formal legal agreements to confirm the investment commitment.
13. 13Complete the onboarding process for regular monitoring throughout the fund lifecycle (startups must approach participating AIFs directly).

Frequently asked questions