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**.