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Fund of Funds for Startups (FFS): How policy vision transformed India’s entrepreneurial ecosystem
When GoI launched Fund of Funds for Startups (FFS) in 2016, sceptics shrugged it off as another bureaucratic black hole. Seven years later, results speak volumes about its success: Rs 11,688 cr committed through 151   AIFs, catalysing a capital pool of around Rs 81,000 cr. An investment of Rs 21,277 cr has already been made in 1,173 startups. Beyond these numbers lies a compelling story of how appropriate policy design has changed India’s entrepreneurial ecosystem.
FFS’ power lies in its multiplier effect. Instead of investing directly, GoI channels funds through Sebi-registered AIFs, which must double FFS contributions in eligible startups. This has revolutionized early-stage funding, especially in sectors where traditional investors shy away.
