Bengaluru start-ups captured a whopping $38 bn from VCs during 2020-24: Priyank Kharge

Bengaluru start-ups attracted venture capital (VC) funds worth a whopping $38 billion during the period between 2020 and 2024, signalling a strong investor confidence, said Priyank Kharge, IT & BT minister.

Despite a global meltdown, Karnataka-based start-ups have raised $1.7 billion of funds in the first half of 2025, the highest by any State, Mr. Kharge told a group of 50 VC firms visiting the city on Wednesday.

“This is the result of the collective effort of our entrepreneurs, investors, and the government,” the Minister said.

Bengaluru and Karnataka were uniquely positioned to lead the next wave of technology, innovation, and investment, and the role of the VC community would be extremely crucial, Mr. Kharge stated. “Your participation, presence, and mentorship can make a tangible difference to the next generation of entrepreneurs in AI and Deep-Tech Innovation,” Mr. Kharge told the VC players.

According to the Minister, over the past few years, the State has emerged as one of the world’s most dynamic start-up ecosystems. Last year, the Department of Electronics, IT, BT, and Science & Technology, launched the Investor Connect programme to create a dynamic platform for start-ups to directly engage with leading investors and pitch their innovative ideas which benefited both start-ups and investors, he said. This year, the State government has received 134 start-up applications spanning 27 diverse sectors, reflecting the depth and vibrancy of Karnataka’s innovation ecosystem.

As per Global Startup Ecosystem Report 2025, Bengaluru climbed seven notches in the Global Start-up Ecosystem rankings, now standing at the 14th position globally in AI and Big Data. India ranks sixth globally among Deep-tech ecosystems, nurturing over 3,600 deep-tech start-ups with majority of these being based in Karnataka.

N. Manjula, Secretary, Department of Electronics, IT, BT, and Science and Technology, said, “Over the years, we have seen the start-up ecosystem and the VC community becoming strong pillars of the Bengaluru Tech Summit. Here, the VCs can engage with the start-ups not just for investment, but also for mentoring and fostering innovation.”