Bengaluru, known as India’s Silicon Valley, has achieved an important milestone in the 2025 Global Startup Ecosystem Report by Startup Genome. The city moved up seven spots in the rankings and now holds the 14th place globally. Bengaluru is a strong startup hub and a center for tech innovation.
Bengaluru’s Startup Ecosystem Valued at $136 Billion
Bengaluru’s startup ecosystem is valued at $136 billion by the report, which is a substantial amount that puts it on level with several big market locations. Increased internet usage, a strong IT skill pool, and a growing investor network are all responsible for this rapid expansion. This rapid growth comes from more people using digital technology, a strong pool of tech talent, and a developing network of investors.From SaaS to space-tech, the city has become a breeding ground for disruptive startups like Zerodha, Razorpay, and Exponent Energy.
AI Innovation: Bengaluru Ranks 5th Globally
Bengaluru ranks 5th in the world for activity in artificial intelligence (AI). The city is attracting global interest as companies invest heavily in AI and machine learning (ML) research and product development. Startups in healthtech, fintech, and logistics are using AI to tackle complex and large-scale problems.
$268 Million Raised in Seed Funding in 2024
Seed-stage funding for Bengaluru-based firms reached $268 million in 2024 alone, a 26% rise from the year before. This indicates that early-stage innovation is flourishing and that investors are willing to support novel ideas and novice inventors. This early impetus has been fuelled in large part by international venture capital firms like Sequoia and Accel, as well as local accelerators and angel networks.
Why Bengaluru Is a Startup Magnet
Several factors contribute to Bengaluru’s rise:
- Highly skilled tech workforce from premier institutions like IISc and IITs.
- Cost-effective infrastructure compared to global counterparts like Silicon Valley or London.
- Policy support from both central and state governments through initiatives like Startup India and Karnataka’s Elevate program.
- Global connectivity with multinational firms and VC funds headquartered or operating in the city.
India’s fast booming digital economy is reflected in Bengaluru’s rise in the global startup rankings. This further emphasises the city’s innovation and enterpreneurship capabilities.
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