Bengaluru, the capital of Karnataka, stands as a major hub for startups, boasting over 16,000 companies and accounting for 47% of India's startup funding in 2024.

According to the recently released 2025 Global Startup Ecosystem Report (GSER) by Startup Genome, Karnataka's startup ecosystem has climbed to 14th place globally, marking a significant improvement from its previous ranking.

The GSER report evaluates over five million startups across 350 ecosystems, focusing on key metrics such as funding, talent, and market reach.

Karnataka is recognized as the second-largest AI talent hub globally, housing around six lakh AI and machine learning professionals, and is ranked fifth among cities innovating in AI.

The report underscores the growing dominance of AI in startup ecosystems, revealing that AI startups received 40% of global venture capital funding, which saw a 33% increase from 2023 to 2024.

Ekroop Caur, Karnataka's secretary for electronics, IT, and biotechnology, attributed the rise in rankings to robust investment flows and successful IPOs within the state's startup ecosystem.

To foster deep tech innovation, Karnataka has launched several initiatives, including INNOVERSE and the Local Economy Accelerator Programme (LEAP), with up to $36 million allocated for emerging technologies.

The recent budget announcement allocated ₹1,000 crore to the LEAP program, aimed at establishing new centers of excellence and Technology Business Incubators (TBIs) beyond Bengaluru.

Karnataka hosts more than 40% of India's Global Capability Centers (GCCs) and aims to double their number by 2029, potentially generating an economic output of $50 billion.

While Silicon Valley continues to lead in AI startups, other regions, such as Beijing, are emerging as formidable competitors in AI funding and innovation.

The Karnataka Startup Policy 2022-2027 promotes innovation and support for startups, including a one-time grant of ₹50 lakh for the Elevate Idea2PoC scheme.