Bengaluru-Karnataka has emerged as Asia’s second-ranked AI-native startup hub while securing a place in the global top 10 for startup performance and research and development, according to the Global Startup Ecosystem Report (GSER) 2026 released by Startup Genome at VivaTech Paris.
The report places Bengaluru-Karnataka at 15th globally among startup ecosystems, highlighting the region’s rapid rise as a global centre for AI, deep-tech innovation, venture capital, and research commercialisation.
The findings, announced jointly by the Karnataka government and the Karnataka Digital Economy Mission (KDEM), show that the ecosystem has outpaced both regional and global growth trends over the past four years.
Between 2021 and 2025, Bengaluru-Karnataka generated $46 billion in startup exits, attracted $39 billion in venture capital funding, and recorded 190% ecosystem value growth, compared to the global average of 149% and Asia’s average of 66%.
The report estimates Bengaluru-Karnataka’s total startup ecosystem value at $152.8 billion, reinforcing its status as India’s largest startup hub and one of the world’s most valuable innovation ecosystems.
A major highlight of the report is Bengaluru-Karnataka’s growing influence in artificial intelligence. Ranked No. 2 in Asia for AI-native startup activity, the ecosystem has emerged as the country’s primary AI innovation centre, accounting for approximately 58% of India’s AI startup funding.
The report also notes stronger-than-average growth in early-stage AI investments, signalling sustained momentum in AI entrepreneurship.
Beyond AI, Bengaluru-Karnataka recorded significant gains in innovation output. The ecosystem improved its ranking in the R&D Engine category from the global top 30 in 2025 to the global top 10 in 2026, reflecting increased patent generation, research activity, and commercialisation of emerging technologies.
The report attributes this progress to the presence of leading institutions such as IISc, ISRO, DRDO, C-DAC, and NAL, alongside growing investments in quantum technologies, aerospace, and deep-tech sectors.
The ecosystem also demonstrated strong capital efficiency. Bengaluru ranked among the global top 10 ecosystems for performance and third in Asia, supported by 304 startup exits, 30 active unicorns, and an average exit timeline of 8.2 years—significantly faster than the global average of 11.1 years.
Startup Genome further ranked Bengaluru-Karnataka among the top 15 ecosystems globally for funding momentum and fourth in Asia, reflecting continued investor confidence and a growing pipeline of high-growth startups.
Commenting on the report, Priyank Kharge, Minister for IT & BT, Karnataka government, said, “Bengaluru-Karnataka is no longer just India’s startup capital; it is increasingly a global deep tech and AI innovation hub.”
The report also recognised Bengaluru-Karnataka’s strength in talent development, ranking it among the top 30 ecosystems globally for talent strength, and placing it among Asia’s leading destinations for affordable technology talent.
Overall, the GSER 2026 findings position Bengaluru-Karnataka as one of the fastest-growing and most capital-efficient startup ecosystems globally, with strong fundamentals across AI innovation, research output, venture funding, talent development, and startup value creation.
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