Bengaluru-Karnataka has emerged as one of the world’s leading innovation centres, ranking second in Asia for AI innovation and entering the global top 10 in both Performance and R&D, according to the Global Startup Ecosystem Report (GSER) 2026 released at VivaTech Paris.

Published by Startup Genome in partnership with the Government of Karnataka and the Karnataka Digital Economy Mission (KDEM), the report highlights the state’s rapid rise as a global hub for artificial intelligence and deep-tech innovation. Bengaluru-Karnataka also recorded growth rates nearly three times higher than the Asian average and attracted USD 39 billion in venture capital between 2021 and 2025.

Bengaluru Strengthens Position as India’s Leading Startup Hub

The GSER 2026 rankings are based on a composite index covering six parameters: Performance, Funding, Market Reach, Talent and Experience, AI-Native Cluster and R&D Engine. The report draws on data from more than 5.5 million companies across over 350 innovation ecosystems worldwide.

Bengaluru-Karnataka was ranked 15th globally in the Startup Ecosystem Index and retained its place among the world’s top 40 startup ecosystems for the second consecutive year.

Since the publication of GSER 2021, the ecosystem has witnessed a 190 per cent increase in value, significantly higher than the global average growth of 149 per cent and the Asia average of 66 per cent.

With a total ecosystem value of USD 152.8 billion, Bengaluru-Karnataka generated USD 46 billion in startup exits between 2021 and 2025 through 304 exits and currently hosts 30 active unicorns.

The report ranked the ecosystem among the top 10 globally and third in Asia for Performance, while it also placed among the top 15 globally and fourth in Asia by ecosystem value.

Venture Funding and Faster Exit Cycles Drive Growth

According to the report, Bengaluru-Karnataka attracted USD 39 billion in venture capital funding during the 2021-2025 period, making it one of the top 15 startup ecosystems globally and the fourth largest in Asia in terms of funding.

The ecosystem’s average exit timeline stood at 8.2 years, considerably lower than the global average of 11.1 years, indicating faster value creation and capital recycling.

Startup Genome noted that Bengaluru’s funding profile is dominated by growth and late-stage capital, while early-stage funding activity has also increased steadily.

The ecosystem ranked among the top 15 globally and fourth in Asia in Funding Momentum, which evaluates startup financing activity and investor participation.

Bengaluru-Karnataka also surpassed Singapore in startup exit value, underlining its increasing influence in the regional technology landscape.

AI and Research Capabilities Gain Global Recognition

Bengaluru-Karnataka’s R&D Engine ranking improved significantly, rising from the global top 30 in GSER 2025 to the top 10 globally in the latest report.

The improvement was attributed to increased patent generation and stronger commercialisation of research, supported by institutions including the Indian Institute of Science (IISc), ISRO, DRDO, C-DAC and the National Aerospace Laboratories (NAL).

The ecosystem has also emerged as a major centre for artificial intelligence, accounting for nearly 58 per cent of India’s AI startup funding.

Bengaluru-Karnataka ranked second in Asia and among the top 15 globally in the AI-Native Cluster category, which measures the concentration and intensity of AI-first startups.

Startup Genome said the ecosystem’s strong early-stage AI activity presents significant scaling opportunities, provided adequate late-stage funding and global market expansion continue.

Talent and Innovation Ecosystem Continue to Expand

The report also highlighted Bengaluru-Karnataka’s strength in talent development and retention.

The ecosystem ranked among the top 30 globally and among the top 10 in Asia in Talent Strength, reflecting its ability to attract and nurture high-quality talent.

It also featured among the top 20 ecosystems in Asia for Affordable Talent and among the top 30 in Asia for Funding Runway, which measures the average capital support available to startups.

Overall, GSER 2026 described Bengaluru-Karnataka as a structurally strong ecosystem characterised by efficient value creation, rising innovation output, robust capital inflows and stronger links between research and commercialisation.

Karnataka Government Sees Recognition as Validation of Deep-Tech Push

Commenting on the rankings, Karnataka Home Minister and Minister for IT and BT Priyank Kharge said the state was increasingly emerging as a global centre for deep-tech and AI innovation.

“Bengaluru-Karnataka is no longer just India’s startup capital; it is increasingly a global DeepTech and AI innovation hub. This recognition by Startup Genome validates our long-term investments in talent, research, entrepreneurship, and emerging technologies. As we build Karnataka’s DeepTech Decade, our focus remains clear: create the next generation of globally impactful companies from Karnataka for the world,” Kharge said.

The Global Startup Ecosystem Report 2026 was unveiled at VivaTech Paris and featured six Indian startup ecosystems, underscoring India’s expanding presence in the global innovation landscape.

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