Bengaluru has further strengthened its position as India’s startup capital, generating an ecosystem value of $153 billion and accounting for 58 per cent of the country’s artificial intelligence venture funding, according to the Global Startup Ecosystem Report (GSER) 2026.
The report ranked Bengaluru 15th globally and sixth in Asia, highlighting the city’s growing influence in deep technology, artificial intelligence and venture capital investment.
Startup ecosystem continues rapid growth
The report, jointly unveiled by Startup Genome and the Karnataka Digital Economy Mission (KDEM) at VivaTech Paris, noted that Bengaluru’s startup ecosystem is expanding at three times the average growth rate of Asia.
Between 2021 and 2025, startups in Bengaluru attracted $39 billion in venture capital funding, making it the fourth-largest recipient of startup investments in Asia. During the same period, the ecosystem recorded $46 billion in value through 304 startup exits.
The report also highlighted Bengaluru’s ability to generate value quickly, with startups taking an average of 8.2 years to achieve an exit, significantly faster than the global average of 11.1 years.
AI and deep-tech drive momentum
A key factor behind Bengaluru’s growth has been its rapid emergence as a major hub for artificial intelligence and deep technology. The report ranked Bengaluru-Karnataka as Asia’s second-largest AI-native cluster and placed its research and development ecosystem among the global top 10.
Industry experts attribute this progress to a strong talent pool, growing research capabilities and supportive government policies aimed at encouraging innovation.
Several state-backed initiatives, including Startup Policy 2.0, the Local Economy Accelerator Program (LEAP) and the Karnataka Quantum Mission, have been designed to accelerate entrepreneurship and emerging technology development.
Global competition remains intense
Despite its impressive growth, Bengaluru faces increasing competition for global capital. The report noted that North American startups attracted 86 per cent of late-stage global AI venture funding in 2025.
Commenting on the achievement, Karnataka IT and BT Minister Priyank Kharge said Bengaluru is evolving beyond being India’s startup capital to becoming a globally recognised deep-tech and AI innovation centre.
As several competing Asian startup hubs witnessed declines in global rankings, Bengaluru’s continued rise presents an opportunity to attract greater international investment and strengthen its position in the global innovation landscape. Bengaluru