Under Startup India Fund of Funds 2.0, startup investments are proposed to be routed through which entities?

Startup India Fund of Funds 2.0 does not invest directly in startups. The government commits money to eligible SEBI-registered Category I and II Alternative Investment Funds (AIFs), and these funds then invest in startups.

Option 1: The Startup India Seed Fund Scheme (SISFS) is the scheme that routes early-stage support to startups through eligible incubators.

Option 2: Bank-based business loans are seen in schemes such as MUDRA and Stand-Up India; commercial banks are not the FoF 2.0 investment route.

Option 3: State startup policies and state finance bodies may support local businesses, but FoF 2.0 uses SEBI-registered AIFs.