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        News and Press Release

        Government Strengthens Startup Ecosystem Through Fund of Funds, Seed Fund Support, and Credit Guarantee Fund Under Startup India

        July 26, 2025

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        The Government with an intent to build a strong ecosystem for nurturing innovation, startups and encouraging investments launched the Startup India initiative on 16th January 2016.

        Under the Startup India initiative, the Government is implementing three flagship Schemes, namely, Fund of Funds for Startups (FFS), Startup India Seed Fund Scheme (SISFS) and Credit Guarantee Scheme for Startups (CGSS) to support startups at various stages of their business cycle.

        FFS has been established to catalyze venture capital investments and is operationalized by Small Industries Development Bank of India (SIDBI), which provides capital to Securities and Exchange Board of India (SEBI)-registered Alternative Investment Funds (AIFs) which in turn invest in startups. AIFs supported under FFS are required to invest at least two times of the amount committed under FFS in startups. As on 30th June 2025, net commitments of Rs. 9,994 crore have been made to 141 AIFs supported under the Scheme.

        SISFS provides financial assistance to seed stage startups through incubators. SISFS is implemented from 1st April 2021. As on 30 th June 2025 Rs. 945 crore have been approved to 219 incubators selected under the Scheme. CGSS is implemented for enabling collateral free loans to startups through eligible financial institutions. CGSS is operationalized by the National Credit Guarantee Trustee Company (NCGTC) Limited and has been operationalized from 1st April 2023. As on 30 th June 2025, 289 loans amounting to Rs. 667.85 crore have been guaranteed for startup borrowers.

        As per the Ministry of Skill Development and Entrepreneurship (MSDE), the Project Swavalambini is being implemented through autonomous Institutes namely the National Institute for Entrepreneurship and Small Business Development (NIESBUD), Noida and Indian Institute of Entrepreneurship (IIE), Guwahati, in collaboration with NITI Aayog and its Women Entrepreneurship Platform (WEP).

        The Swavalambini Project is designed to foster an entrepreneurial mindset among women students, making them aware of the available support mechanisms, schemes, resources, and networks necessary to pursue entrepreneurship as a career.

        The project is launched as a pilot in selected colleges and universities of UttarPradesh,  Telangana, Meghalaya, Mizoram and Assam. The project includes Entrepreneurship Awareness Training and Entrepreneurship Development Training for students as well as Faculty Development Programme (FDP) for capacity building of faculty members.

        As on 30 th June 2025, Entrepreneurship Awareness Programmes have been organized for 591 students and FDPs have been completed for 43 faculty members

        of Higher Education Institutions (HEIs).

        This information was given by the Minister of State for Ministry of Commerce & Industry, Shri Jitin Prasada, in a written reply in the Rajya Sabha.

        Startup support schemes expand funding via fund of funds, seed finance and credit guarantees to strengthen early stage ventures. Government policy expands targeted support for startups through three flagship initiatives: Fund of Funds for Startups (FFS)-operationalised by SIDBI and channelled to SEBI registered AIFs required to invest at least twice the FFS commitment into startups; Startup India Seed Fund Scheme (SISFS)-providing financial assistance to seed stage startups via incubators; and Credit Guarantee Scheme for Startups (CGSS)-operationalised by the National Credit Guarantee Trustee Company to enable collateral free loans guaranteed for startup borrowers.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Startup support schemes expand funding via fund of funds, seed finance and credit guarantees to strengthen early stage ventures.

                                Government policy expands targeted support for startups through three flagship initiatives: Fund of Funds for Startups (FFS)-operationalised by SIDBI and channelled to SEBI registered AIFs required to invest at least twice the FFS commitment into startups; Startup India Seed Fund Scheme (SISFS)-providing financial assistance to seed stage startups via incubators; and Credit Guarantee Scheme for Startups (CGSS)-operationalised by the National Credit Guarantee Trustee Company to enable collateral free loans guaranteed for startup borrowers.





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