Innovation and Startups

Catalyzing Innovation & Startup Growth Across Karnataka

Empowering clusters, accelerating deep-tech, and building a robust digital economy.

Explore Startup Initiatives

Karnataka's Innovation and Startups Ecosystem

19,000+

Number of Startups

5,000+

Active Tech Investors

$76Bn+

Funding Raised

53

Unicorns

183

Soonicorns

4

Decacorns

200+

Accelerators & Incubators

55+

Innovation Hubs

16

CoEs(Centres of Excellence)

3.4k

Funded Tech Startups-highest number in India

14th

In Global Startup Ecosystem Ranking 2025 by Startup Genome

1600

Active Women led startups since 2010

About Innovation and Startups Ecosystem

Karnataka ranks as the world's third-largest startup ecosystem, boasting over 19,000+ DPIIT-recognized startups as of 2025. The state is home to more than 40% of India's unicorns, with 53 unicorns and over 183 soonicorns currently based here. Karnataka ecosystem achieved a global ranking of 14th in the Startup Genome Global Startup Ecosystem Ranking 2025, cementing its status as a major global innovation hub

The Innovation and Startups team at KDEM works on sustainable growth agenda with startups at all maturity levels. The team works very closely with startups led by student entrepreneurs in their pre final and final year of engineering. The I&S team also works closely with accelerators and incubators to boost the startup ecosystem in the state. For bootstrapped startups, the team focuses on selected agendas such as providing relevant services through various initiatives. Through flagship initiatives such as Beyond Bengaluru Blue, Cluster Seed Fund, and tie-ups with partner organizations, KDEM aims to bring the members of the startup ecosystem together to collaborate and scale up their growth. The main objective of the Innovation and Startups team at KDEM is to provide startups an easy access to capital, mentorship & networking opportunities. The team also works with large startup enterprises for policy advocacy issues.

KDEM through its Innovation and Startups vertical plans to support Startup Policy facilitation, support Innovation framework through CoE, TBIs, NAINs and CIFs and facilitate Industry connect & Enterprise connect programmes for Start-ups. KDEM plans to handhold startups and facilitate investor connects by conducting various programmes and undertaking initiatives like designing and implementing a digital research hub and providing support to elevate companies through effective mentoring & acceleration programs.

Initiatives

Beyond Bengaluru Blue

Karnataka Accelerator Network

Beyond Bengaluru Cluster Seed Fund

Local Economy Accelerator Program

Global Innovation Alliance – Market Access Program

GoK Initiatives

Elevate

Grassroot Innovation

Centre of Excellence

New Age Innovation Network

Rajiv Gandhi Entrepreneurship Program

Technology Business Incubator

Global Technology Centre

Other Incentives

Startups get access to the following tools and services at discounts or on a free-of-cost basis through credits from our industry partners
  • Self-certifications for varous statuatory permissions
  • A better deal for Women Entrepreneurs in Incubators
  • Reimbursements of patents spends
  • SGST Exemptions
  • Reimbursements of marketing spends
  • Subsidized seats in Government supported Incubators
  • Access to idea to a PoC Funding
  • Participate in Government sponsored Exposure Visits
  • Make a Difference through "Grand Challenges"

Policy Incentives and support from the Government of Karnataka

Karnataka Startup Policy 2022 - 2027

Handbook On Digital Economy Policies, Programs & Incentives In Karnataka

Reports

Bengaluru Innovation Report 2025

Download

Bengaluru Innovation Report 2025

Download

Compendium of CoEs

Download

AI Driven Cybersecurity

Download

Landscape of Early-Stage Funding in Karnataka

Download

Fintech Task Group Report 2022

Download

Fintech Task Force Report - 2022

Download

Inc42 Report

Download

Startup Genome 2025

Download

Karnataka Quarterly funding Report Q1 2025

Download

Inc42 Indian Tech Startup Funding Report 2025

Download

Startup Genome Report

Download

Karnataka State Report –StartupIndia

Download

Inc42 Indian Tech Startup Funding Report

Download

Inc42 National Startup Day
Report

Download

YOURSTORY State of India’s Startup Ecosystem July 2022

Download

The State of the Indian Startup Ecosystem – Inc42

Download

Startup Genome Report

Download

Karnataka State Report –StartupIndia

Download

Inc42 Indian Tech Startup Funding Report

Download

Inc42 National Startup Day
Report

Download

YOURSTORY State of India’s Startup Ecosystem July 2022

Download

The State of the Indian Startup Ecosystem – Inc42

Download

Our Partners in Progress

Government Partners

Startup Ecosystem Enablers

Industry Association Partners

Get in Touch

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KDEM’s Beyond Bengaluru mission accelerates the digital economy across Karnataka by nurturing startup ecosystems in emerging clusters. To ensure founders outside Bengaluru get equal access to opportunities, KDEM—along with the Department of Electronics, IT, BT and S&T—launched the BLUE initiative. Beyond Bengaluru BLUE connects high-potential startups from the Hubballi-Dharwad-Belagavi, Mangaluru, and Mysuru clusters with VCs, angel investors, and industry leaders. The platform enables founders to pitch, network, and secure investments while gaining visibility within the state’s innovation landscape. 

Karnataka Acceleration Network is a unique initiative by the Government of Karnataka and one of its kind in the country designed to boost the acceleration ecosystem in the state. The six-month acceleration program offers growth stage startups comprehensive support through a series of modules, including cohort readiness, business strategy revisits, market validation, customer acquisition, and investment readiness. Additionally, startups will receive mentorship, access to infrastructure and market linkages.

Entities such as accelerators help early-stage startups accelerate their growth by providing resources such as mentorship, networking opportunities, and funding through a program that would typically last for a few months while incubators provide all the above mentioned along with the working space to the startups.
Karnataka Acceleration Network is an initiative by KDEM aimed at nurturing ~306 start-ups over a period of 3 years, through a unique model of mentor-mentee relationship between the participating accelerators/ incubators.
The Acceleration network would include three Accelerators from Bengaluru and one Accelerator/Incubator each from the three clusters viz. Mysuru, Mangaluru & Hubballi-Dharwad-Bengaluru.

Some of the key objectives of KAN are as follows:

  • To create vital inter-linkages/ exchanges of information
  • Assist in raising venture capital, support exit by acquisition, and help in gaining customer traction
  • To facilitate industry-connect, fundraising through VCs/Angels and promote globalization

The Beyond Bengaluru Cluster Seed Fund is a ₹75 crore initiative by the Government of Karnataka and KDEM to strengthen early-stage funding for startups across emerging technology clusters such as Mysuru, Mangaluru and Hubballi–Dharwad–Belagavi. With an initial commitment of ₹20 crore from the Department of Electronics, IT & BT, the fund aims to bridge the early-stage capital gap faced by high-potential startups outside Bengaluru. 

Nearly 50% of the recognized startups in India are now from Tier 2 and 3 cities. This is a big testament to the fact that the startup revolution in India has reached all corners of the country, moving beyond Bengaluru, Mumbai, and National Capital Region (NCR).The need of the hour is to ensure these startups are given easy access to capital to provide them an equitable opportunity to scale up.

The Beyond Bengaluru Cluster Seed Fund initiative is aimed at providing funding support for early-stagestartups of the Beyond Bengaluru Startups in Mysuru, Mangaluru and Hubballi- Dharwad-Belagavi clusters.

The Fund is intended to invest in unlisted start-ups, early stage, small and medium enterprises, and such other enterprises driven by innovation. KDEM is the implementing agency forthis initiative.

Local Economy Accelerator Program (LEAP) is a ₹1000 crore, 5-year initiative launched by the Government of Karnataka to supercharge regional entrepreneurship, decentralize innovation, and amplify growth across the state’s emerging tech clusters. 

Global Innovation Alliances helps startups get market access to international markets. KDEM facilitates the formation of strategic alliances players in GIA partner of key countries and Karnataka. 

A flagship program by Government of Karnataka where grant of up to Rs 50 Lakhs is given to encourage innovators who may need early-stage funding to develop a prototype, market development and scale up

Fostering grassroot innovators with a financial grant of Rs 4 lakh to perfect their technology and commercialize their innovations.

The CoEs foster collaboration between industry, academia, and startups to solve real-world challenges and accelerate technology adoption, while offering specialized skill-development programs and certifications in emerging technologies. They provide startups with advanced infrastructure, mentorship, and funding support to help them scale globally. By driving innovation and sectoral growth, the CoEs strengthen Karnataka’s position as a global technology leader.

To promote innovation in educational institutions outside Bengaluru Urban district. Students to identify local problems, address them using concepts of frugal innovation, develop technology-based solutions and prototypes.

An early-stage funding program (subsistence grant/ stipend for Innovators) Monthly stipend of INR 25,000 for 12 months

Startups receive access to mentors and specialized infrastructure aligned with the incubator’s focus areas, along with business guidance, financial and management support, and legal or regulatory assistance. Strong linkages with academic and R&D institutions enable technology commercialization, while structured support helps founders navigate early-stage challenges and accelerate their growth. 

The Global Technology Centre (GTC) in Mysuru, developed by the Karnataka Government & KDEM under the “Beyond Bengaluru” initiative, is a state-of-the-art “plug & play” hub for IT/BT/ST firms, offering world-class facilities, R&D spaces, and training to foster innovation and create high-quality tech jobs, positioning Mysuru as a major digital economy player alongside Bengaluru.  

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