We plan to bring eChai across 100 cities in India. It starts with eChai Startup Demo Day on 26 September, all in person. 11 cities confirmed, 284 founders registered. Any city that reaches 20 interested founders is on too. See your city

Fund of Funds

Also called FoF

A fund that invests in other venture funds rather than directly in startups, giving its own investors diversified exposure to VC as an asset class.

Why it matters

Fund of funds are a major source of LP money for VCs, especially emerging managers. They rarely matter to founders directly, but they are part of why the capital flows the way it does.

For example

A pension fund invests 100 crore into a fund of funds, which spreads it across a dozen venture funds rather than picking startups itself.

Go deeper

SIDBI Fund of Funds and technology development schemes overview SIDBI · article SIDBI's own page lays out how its Fund of Funds machinery actually works: it does not write you a cheque directly, it capitalises SEBI-registered AIFs (the Fund of Funds for Startups, the ASPIRE Fund for MSMEs, and state funds) which are then mandated to deploy into startups. Read this so you understand you reach SIDBI money through the funds it backs, and target the right AIFs rather than applying to SIDBI cold. Open sidbi.in →

Related terms

Limited Partner Venture Capital Micro VC

Also in Starting Up

See how founders actually handle this on Raising your first round, part of the Starting Up hub.

eChai Partner Brands