Fund of Funds for Startups
A programme by Small Industries Development Bank of India (SIDBI) (Small Industries Development Bank of India)
SIDBI invests in SEBI-registered venture funds, which then invest in startups — the fund applies, never the startup.
At a glance
| Best for | SEBI-registered Category I and II Alternative Investment Funds. Startups cannot apply. |
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About Fund of Funds for Startups
The Fund of Funds for Startups was announced in January 2016 under the Startup India Action Plan and is managed by SIDBI on behalf of the Ministry of Commerce and Industry. SIDBI has also been named implementing agency for Startup India Fund of Funds 2.0, which came into force on 13 April 2026.
It is important to be clear about how this reaches a company. SIDBI puts money into Alternative Investment Funds registered with SEBI. Those funds then invest in startups on their own terms, and must invest at least twice what they take from SIDBI into startups. A startup has no application route here at all. If you want this capital, you raise from one of the funds SIDBI has backed.
Who can apply
- Funds registered as Category I or II Alternative Investment Funds with SEBI, or that have applied to SEBI
- Funds below the stated corpus ceiling
- Funds whose investment strategy includes investing in startups as the Government of India defines them
- Funds that agree to invest at least twice the contribution they seek into startups
- Fund managers with a prior track record in fund management or prior investment experience, whose key members meet a minimum credit score and are legally eligible to hold a directorship or managerial position under Indian law
How selection works: applications go to a Venture Capital Investment Committee made up of venture capital experts from several industries. SIDBI states that meeting the criteria does not guarantee a sanction; each case is decided on merit after the application is submitted.
How to apply: funds apply through SIDBI's separate fund application portal, linked from its Fund of Funds site.
Where to apply
Other SIDBI programmes
- Machinery Loan (EXPRESS and SPEED)Two direct term loans from SIDBI for MSMEs buying plant and machinery, applied for online.
- Project Funding (ARISE, Ubharte Sitaare and STHAPAN)Direct term loans for expansion, for export-oriented MSMEs and for setting up a new unit.
- Working Capital (Working Capital, SWIFT and STEP)Direct working capital facilities for MSMEs that do not already bank their working capital elsewhere.
- Green FinanceDirect term loans for MSMEs in the green value chain and for energy efficiency upgrades.
- PRAYAASAffordable credit for informal micro-entrepreneurs, delivered at their door by partner institutions rather than by SIDBI directly.
- Production Linked Incentive Scheme for Telecom and Networking ProductsA Department of Telecommunications incentive scheme; SIDBI is its project management agency and runs the application portal.
- Production Linked Incentive Scheme for PharmaceuticalsA Department of Pharmaceuticals incentive scheme; SIDBI is its project management agency and runs the application portal.
- Refinance and institutional financeSIDBI's largest channel: lending to banks, NBFCs and microfinance institutions so they can lend to MSMEs. Not something a business applies for.
Everything about Small Industries Development Bank of India (SIDBI)