New Delhi [India], February 15 (ANI): Sanjeev Bikhchandani, Chair of the FICCI Startup Committee and & Founder and Executive Vice Chairman of Info Edge believes the new government fund is a major step for Indian startups. He argues that providing 'patient domestic capital' will help founders build long-term businesses. He thinks this support is necessary for India to compete globally and grow its economy in many different regions.

In a post shared by FICCI on X, Bikhchandani stated, 'The approval of Startup India Fund of Funds 2.0 is a transformative step for India's entrepreneurial landscape. With a 10,000 crore corpus dedicated to mobilising patient domestic capital, the initiative will capitalise deep tech breakthroughs, strengthen innovative manufacturing, and empower ambitious founders nationwide. It sends a powerful signal that India is committed to building globally competitive startups and sustaining long-term innovation-led economic growth across diverse sectors and emerging regions nationwide.'

This reaction follows the Union Cabinet's approval of the 10,000 crore Startup India Fund of Funds 2.0. The government created this fund to help startups find the money they need to grow. It specifically targets deep tech, advanced manufacturing, and new founders. The main goal is to prevent good ideas from failing just because they cannot find early financial support.

This new fund follows the first version of the scheme launched in 2016. The government noted that the original program successfully supported over 1,370 startups by committing its entire Rs 10,000 crore corpus to various investment funds. These funds then put more than Rs 25,500 crore into companies working in fields like artificial intelligence, healthcare, and space technology. The press release stated that the first phase 'played a pivotal role in nurturing first-time founders' and helped build a 'strong foundation for India's venture capital ecosystem.'

One of the main goals of the 2.0 version is to support high-tech areas that take a long time to develop. The government wants to provide 'patient, long-term capital' for breakthroughs in deep tech and innovative manufacturing. By focusing on these difficult sectors, the scheme aims to address 'high-risk capital gaps' that are often ignored by private investors but are necessary for the country to become more self-reliant.

The fund is also intended to reach beyond big cities like Bengaluru or Delhi. The government wants to encourage investment in every part of the country so that innovation can thrive anywhere. According to the statement released by the cabinet yesterday, the scheme is 'designed to accelerate the next phase of India's startup journey by mobilising long-term domestic capital' and reducing the country's dependence on foreign investment.

Since 2016, the number of recognised startups in India has grown from fewer than 500 to more than 2 lakh. The government believes this new injection of capital will help maintain that momentum. The release concluded that the fund will contribute to 'strengthening India's economic resilience, boosting manufacturing capabilities, and generating high-quality jobs' as part of the broader national goal to become a developed nation by 2047. (ANI)