The Global Startup Ecosystem Report 2026, regarded as the benchmark for measuring startup ecosystems worldwide, analysed data from more than 5.5 million companies across over 350 innovation ecosystems. Rankings were determined using a weighted composite index based on six key factors comprising Performance at 27.5 per cent, Funding at 20 per cent, Market Reach at 20 per cent, Talent and Experience at 17.5 per cent, AI-Native Cluster at 10 per cent, and R&D Engine at 5 per cent. Each category was assessed on a scale of one to ten, making the evaluation a multidimensional measure of ecosystem strength.
The report identified Bengaluru-Karnataka as Asia's second-largest AI-native startup ecosystem, reflecting the region's strengths in talent, research, entrepreneurship and venture capital. It also recorded stronger-than-average growth in early-stage artificial intelligence funding, strengthening Karnataka's position in shaping the country's artificial intelligence future.
According to the report, Bengaluru-Karnataka ranked fifteenth globally in the Startup Ecosystem Index and recorded ecosystem value growth of 190 per cent since the 2021 edition, significantly higher than the global average of 149 per cent and the Asian average of 66 per cent. The ecosystem reached a total value of USD 153 billion and generated USD 46 billion in startup exits between 2021 and 2025. During the same period, 304 exits were recorded and the region maintained 30 active unicorns. Bengaluru-Karnataka ranked among the top ten ecosystems globally and third in Asia for Performance, while securing a place among the top fifteen globally and fourth in Asia by ecosystem value.
The investment landscape remained robust as Bengaluru-Karnataka attracted USD 39 billion in venture capital funding between 2021 and 2025, placing it among the top fifteen ecosystems globally and fourth in Asia. The average exit timeline stood at 8.2 years, considerably faster than the global average of 11.1 years, demonstrating quicker value creation and capital recycling. The funding structure showed a strong concentration of growth and late-stage capital, supported by increasing activity in the early-stage segment.
The report highlighted substantial progress in research and innovation. Bengaluru-Karnataka improved its R&D Engine ranking from the global top thirty in 2025 to the top ten globally in 2026 due to increased patent output and research commercialisation. The progress has been driven by institutions including the Indian Institute of Science, Indian Space Research Organisation, Defence Research and Development Organisation, Centre for Development of Advanced Computing and National Aerospace Laboratories. The ecosystem is also witnessing the rise of deep-technology initiatives in quantum technologies and aerospace.
Bengaluru-Karnataka emerged as a major centre for artificial intelligence, accounting for approximately 58 per cent of India's artificial intelligence startup funding. It secured the second position in Asia in the AI-Native Cluster category, reflecting a strong concentration of artificial intelligence-first businesses with considerable potential for scaling through greater access to late-stage capital and international markets.
Overall, the report described Bengaluru-Karnataka as a structurally strong ecosystem characterised by efficient value creation, rising innovation output and above-average capital inflows, supported by rapid exit cycles and deeper research-commercialisation linkages.
Bengaluru retained its position among the world's top forty startup ecosystems for the second consecutive year and ranked fifteenth globally with an ecosystem value of USD 152.8 billion. It secured a place among the top ten globally and third in Asia in the Performance category, which measures startup value generated through funding and exits.
In the area of innovation, Bengaluru-Karnataka ranked among the top ten globally and fifth in Asia in the R&D Engine category, which evaluates research activity and patent generation. The ecosystem also placed among the top fifteen globally and fourth in Asia in Funding Momentum, measuring early-stage funding activity and investor participation.
The ecosystem secured a place among the top fifteen globally and second in Asia in the AI-Native Cluster category, reflecting the scale and intensity of artificial intelligence startup activity. In Talent Strength, Bengaluru-Karnataka ranked among the top thirty globally and among the top ten in Asia, indicating its ability to generate, attract and retain highly skilled talent. It also ranked among the top twenty ecosystems in Asia in Affordable Talent and among the top thirty in Asia in Funding Runway, which measures the average capital availability secured through venture funding rounds.
Commenting on the recognition, Priyank Kharge, Home Minister, Information Technology and Biotechnology Minister and Minister for Electronic Governance in the Government of Karnataka, said Bengaluru-Karnataka had evolved beyond being India's startup capital and was increasingly becoming a global deep-technology and artificial intelligence innovation hub. He said the recognition by Startup Genome validated Karnataka's long-term investments in talent, research, entrepreneurship and emerging technologies. He added that as Karnataka entered its deep-technology decade, the focus remained on creating the next generation of globally influential companies from Karnataka for international markets.
The Global Startup Ecosystem Report 2026 highlights Bengaluru-Karnataka's growing importance in the international innovation landscape and underscores the state's emergence as one of Asia's most dynamic centres for artificial intelligence, research-driven entrepreneurship and high-value startup creation.
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