The Government of Karnataka and Karnataka Digital Economy Mission (KDEM), in collaboration with Startup Genome, unveiled key findings from the Global Startup Ecosystem Report (GSER) 2026 at VivaTech Paris. The report highlights India's growing innovation footprint, with six Indian ecosystems featured globally. GSER is recognized as the definitive benchmark for startup ecosystems, drawing on data from over 5.5 million companies across more than 350 innovation ecosystems worldwide.
GSER 2026 Rankings Methodology
The GSER 2026 ecosystem rankings are based on a weighted composite index across six key success factors: Performance (27.5%), Funding (20%), Market Reach (20%), Talent and Experience (17.5%), AI-Native Cluster (10%), and R&D Engine (5%). Each factor is scored on a 1-10 scale across more than 350 global ecosystems, providing a multidimensional assessment of ecosystem strength.
Bengaluru-Karnataka's AI Leadership
Bengaluru-Karnataka has been ranked Asia's #2 AI-native startup ecosystem, underscoring its growing influence in the global AI landscape. The region continues to build on its strengths in talent, research, entrepreneurship, and venture capital. It also recorded stronger-than-average growth in early-stage AI funding, reinforcing Karnataka's role in shaping India's AI future.
Performance and Ecosystem Value
Ranking #15 globally in the Startup Ecosystem Index, Bengaluru-Karnataka strengthens its position as India's leading startup hub. Since GSER 2021, the ecosystem has recorded a 190% growth in ecosystem value, significantly outpacing the global average of 149% and the Asia average of 66%. With a total ecosystem value of USD 153 billion, USD 46 billion in startup exits between 2021 and 2025, 304 exits, and 30 active unicorns, the region demonstrates strong innovation output while maintaining comparatively lower talent input costs. It ranks among the Top 10 globally and #3 in Asia for Performance, and among the Top 15 globally and #4 in Asia by Ecosystem Value.
Funding and Investment
Bengaluru-Karnataka attracted USD 39 billion in venture funding between 2021 and 2025, placing it among the Top 15 ecosystems globally and fourth in Asia. The ecosystem's average exit timeline of 8.2 years, compared to the global average of 11.1 years, reflects faster value-realisation cycles and capital recycling. Its funding profile is characterized by a strong concentration of growth and late-stage capital, complemented by increasing early-stage activity.
R&D and Innovation
Bengaluru-Karnataka's R&D Engine ranking improved from the global Top 30 in GSER 2025 to the Top 10 globally in GSER 2026, driven by increased patent output and research commercialisation. This growth is supported by leading institutions such as IISc, ISRO, DRDO, C-DAC, and NAL, alongside emerging deep-tech initiatives in quantum technologies and aerospace. The ecosystem has also emerged as a leading AI hub, accounting for approximately 58% of India's AI startup funding and ranking #2 in Asia in the AI-Native Cluster category.
Key Highlights in GSER 2026
- Ranked #15 Global Startup Ecosystem with an ecosystem value of USD 152.8 billion.
- Top 10 globally and #3 in Asia for Performance.
- Top 10 globally and #5 in Asia in R&D Engine category.
- Top 15 globally and #4 in Asia in Funding Momentum.
- Top 15 globally and #2 in Asia in AI-Native Cluster category.
- Top 30 globally and Top 10 in Asia in Talent Strength.
- Top 20 in Asia in Affordable Talent.
- Top 30 in Asia in Funding Runway.
Government Response
Priyank Kharge, Honourable Home Minister, IT & BT, E-governance, Government of Karnataka, said, “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.”
