Karnataka accounts for 46 per cent of India's venture capital funding
The state is home to over 22,000 startups and aims to nurture 25,000 through new policies.
Karnataka currently holds nearly 46 per cent of all venture capital investments in Indian startups, according to a report by Moneycontrol. As of September 2026, the state hosts more than 22,000 startups and a network of approximately 300 venture capital firms.
Bengaluru-based startups have secured about $79 billion in venture capital funding since 2010. India has become the third-largest startup ecosystem globally, with over 1.6 lakh startups creating more than 16 lakh direct jobs.
The Karnataka Startup Policy 2025–2030 intends to support 25,000 startups, including 10,000 located outside Bengaluru. To decentralise growth, the government launched the Local Economy Accelerator Program (LEAP) in August 2025 with a Rs 1,000 crore allocation over five years.
LEAP targets innovation clusters in Hubballi-Dharwad, Mysuru, Mangaluru, Kalaburagi and Belagavi. The initiative supports centres for artificial intelligence, agriculture, quantum technologies and defence technologies.
Other state programmes include the Rajiv Gandhi Entrepreneurship Programme, which provides a monthly grant of Rs 25,000 for 12 months, and the ELEVATE programme, which offers up to Rs 50 lakh to early-stage startups. The ELEVATE NxT initiative provides up to Rs 1 crore for deep-tech commercialisation.
The state has also introduced the Rs 25 crore Government First initiative. This allows nearly 100 startups to test their products in government departments with grants reaching Rs 25 lakh.