Haryana’s government has launched a ₹2,000 Cr Fund of Funds to boost the state’s startup ecosystem, aiming to triple the number of startups. Announced on June 19, 2025, the initiative targets young entrepreneurs with financial support, mentorship, and infrastructure. The fund aligns with the Startup Haryana Policy 2022, fostering innovation in AI, IT, and more.
Haryana’s Bold Push for Startup Growth with ₹2,000 Cr Fund
On June 19, 2025, Haryana Chief Minister Nayab Singh Saini announced a transformative ₹2,000 crore Fund of Funds to bolster the state’s startup ecosystem, with a vision to establish Haryana as a leading hub for innovation and entrepreneurship. The initiative, unveiled during a high-profile event in Gurugram, aims to triple the number of startups in the state, which currently hosts over 8,400 DPIIT-recognized startups as of January 2025. This ambitious fund is designed to encourage private investors to contribute to early-stage venture capital, providing critical financial backing to young entrepreneurs.
The Fund of Funds will not directly invest in startups but will participate in SEBI-approved venture capital funds, contributing up to 10% as a limited partner. For every rupee invested by the state, private venture capital funds are expected to invest double in Haryana-based startups, ensuring a multiplier effect. This approach is intended to attract ₹1,500 crore in investments into the state’s incubation and startup ecosystem during the policy period, as outlined in the Haryana State Startup Policy 2022.
The announcement comes as part of a broader strategy to nurture innovation, particularly among young entrepreneurs in non-metro cities like Ambala, Hisar, and Kaithal. The state government is also introducing entrepreneurship competitions in every district starting from the 2025-26 academic session, offering ₹1 lakh prizes to selected teams to convert their ideas into viable business models. Additionally, the state is considering amendments to the 2022 Startup Policy to address gaps in implementation, such as delays in fund disbursement and lack of awareness among entrepreneurs.
Haryana’s startup ecosystem is gaining momentum, with a focus on emerging sectors like artificial intelligence (AI), blockchain, and cybersecurity. To capitalize on the AI boom, the government is planning a Haryana AI Mission, backed by an initial ₹474 crore from the World Bank. This mission will establish AI hubs in Gurugram and Panchkula to train over 50,000 youth in cutting-edge technologies, equipping them for future job opportunities.
The state’s efforts also include infrastructure development, with plans to create 1 million square feet of incubation space and support for 22 technology and business incubators across various sectors. Financial incentives under the Startup Haryana Policy include 30-45% reimbursement of lease rentals (up to ₹5 lakh annually), 100% reimbursement of patent costs (up to ₹25 lakh), seed grants of up to ₹10 lakh, and 75% reimbursement for cloud storage expenses on Haryana-based data centers.
Chief Minister Saini emphasized the state’s commitment to fostering a conducive environment for startups, aligning with national initiatives like Startup India and Make in India. In a recent interaction with 60 startup founders, Saini gathered suggestions on product design, branding, and affordable infrastructure, which will be integrated into the upcoming 2025-26 budget. The government’s focus on regulatory simplification and ease of doing business aims to make Haryana a hassle-free destination for investors and entrepreneurs alike.
The initiative has sparked optimism among stakeholders, with industry leaders praising the state’s proactive approach. However, challenges remain, as highlighted in the DPIIT’s States’ Startup Ranking 2024, where Haryana was categorized as an “Aspiring Leader” alongside states like Bihar and Nagaland. Experts suggest that effective implementation, increased awareness, and faster fund disbursement will be critical to achieving the state’s ambitious goals.
Disclaimer: This article is based on information from government announcements, official statements, and reports available on the web as of July 5, 2025. The data has been cross-verified with sources like startupharyana.gov.in, inc42.com, and yourstory.com. Readers are advised to verify details with official government portals for the latest updates.