Startup India's Fund of Funds Scheme Facilitates Investments of Rs 17,534 Crore in 938 Startups

Launch: Prime Minister Narendra Modi launched the FFS scheme under the Startup India programme in January 2016.
Objective: Enable investments in startups, particularly focusing on early-stage funding in young companies.

Investments: Rs 17,534 crore invested in 938 startups, resulting in around 4x returns of the amount drawn.
Unicorns: 18 startups supported by FFS have achieved unicorn status.
Investment Approach: FFS doesn’t invest directly in startups; instead, it provides capital to SEBI-registered AIFs, which then invest in growing Indian startups through equity and equity-linked instruments.

Investments Beyond Tier 1 Cities: 129 startups located in cities beyond Tier 1 locations have received investments totaling Rs 1,590 crore.

CRISIL Assessment (Prabhaav): Indicates that support under FFS has been instrumental in facilitating fund raises for startups.
Survey Findings: 89% of respondents confirmed the importance of FFS support in their fundraising endeavors.
First-Time Fund Managers: 35% of supported AIFs are managed by first-time fund managers, contributing to the expansion and deepening of the AIF/VC funding ecosystem.

Recognition: Over 1.20 lakh startups have been recognized under the Startup India programme as of February 9, 2024.
Benefits: Startups registered with DPIIT gain access to tax benefits, streamlined compliance processes, fast-tracking of Intellectual Property Rights (IPR), among other advantages.
Tax Exemptions: 2,978 startups have received tax exemptions under the Startup India programme.
Labour and Environmental Laws: Startups can self-certify compliance with six labour laws and three environmental laws, simplifying regulatory burdens.