Delhi Government Proposes ₹200 Crore VC Fund in New Startup Policy Draft

The Delhi government has released the draft Delhi Startup Policy, 2025, which aims to support the establishment of at least 5,000 startups by 2035. The draft outlines financial incentives, incubation support, and a monitoring framework to create a structured startup ecosystem in the national capital.

Venture Capital Fund

As per news reports, a ₹200 crore venture capital fund has been proposed under the policy. The fund is intended to provide financial support to early-stage startups while encouraging private co-investments. The draft also mentions workshops with investor networks to guide high-net-worth individuals and aspiring investors on the process of funding startups.

Financial Support Measures

The policy lists several incentives:

• 100% reimbursement on lease rentals up to ₹10 lakh per year for a maximum of 3 years.
• Reimbursement of up to ₹3 lakh for international and ₹1 lakh for domestic patent filings.
• A monthly allowance of ₹2 lakh for one year to meet operational expenses.

Infrastructure and Incubation

The government plans to set up new incubation centres and coworking spaces, with subsidies provided for five years in addition to existing central government schemes. A Delhi Incubation Hub will offer virtual incubation services, giving startups access to mentors, experts, and industry networks.

Oversight and Task Force

A Policy Monitoring Committee, chaired by the Commissioner of Industries, will oversee the scheme. It will include senior officials and industry experts. A separate Startup Task Force, with officials and five industry experts, will evaluate applications for benefits and review the policy’s progress every six months.

National Startup Context

India’s startup ecosystem is currently the third largest in the world, with nearly 1.9 lakh startups and over $164 billion raised to date. Several states have introduced startup-focused policies, including Haryana, which recently proposed a ₹2,000 crore fund of funds.

Read more: India's Startup Forum Aims to Unlock $90 Billion in IPOs with New Hub!

Conclusion

The draft Delhi Startup Policy, 2025, combines financial incentives, incubation support, and oversight mechanisms. Its central goal is to nurture 5,000 startups by 2035 with the help of a dedicated ₹200-crore venture capital fund.

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