On Saturday, the Indian government issued guidelines for the second tranche of its ₹10,000 crore (approximately $1.2 billion USD) fund of funds (FoF) scheme designed to bolster the startup ecosystem. The guidelines focus on efficient fund deployment, governance, and monitoring, aiming to streamline capital flows into startups recognized by the Department for Promotion of Industry and Internal Trade (DPIIT). The Small Industries Development Bank of India (SIDBI) will serve as the initial Implementation Agency, facilitating the selection and monitoring of registered Alternative Investment Funds (AIFs). These AIFs will invest in startups across various sectors and stages, promoting disciplined capital allocation and private investment crowding-in. Additionally, the operational guidelines introduce a structured segmentation of funds targeting deep tech, micro venture capital, and innovative manufacturing sectors. Proposals will be assessed by a Venture Capital Investment Committee comprising industry leaders and experts, ensuring a thorough evaluation based on management capability and investment strategy.