Bengaluru ranked second-best AI-native cluster in Asia, top 15th startup ecosystem globally

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Bengaluru

Bengaluru-Karnataka has ranked 15 among the apical 40 planetary startup ecosystems arsenic per the latest Global Startup Ecosystem Report (GSER) 2026 launched astatine VivaTech, Paris connected June 17.

The city, which has been ranked arsenic the apical 6 startup ecosystem successful Asia, has besides emerged the second-best AI-native clump successful the continent aft Beijing.

High successful R&D and AI

Silicon Valley, New York City, and London retained the apical 3 positions with nary alteration successful rankings from past year.

Bengaluru, which emerged successful the 14th presumption successful 2025, slipped to the 15th place, though nary state has been ranked the 14th presumption this twelvemonth successful the report. Instead, Toronto-Waterloo and Paris tied for the 13th position.

The study analysed six occurrence factors including show (in presumption of exits, ecosystem worth and startup success), funding, marketplace reach, endowment and experience, AI-native clump and R&D Engine of each ecosystem to make the rankings. Each origin was awarded a people betwixt 1 and 10, 10 being the highest and 1 the lowest.

Bengaluru scored 9 successful show and R&D, 8 successful AI-native cluster, and 7 successful backing and market-reach.

Low successful talent

Surprisingly, the city, whose endowment excavation has been its bragging point, scored lone 4 nether ‘talent and experience.’

In presumption of prime and entree of tech and beingness sciences talent, Bengaluru scored lone 1, though it scored a 10 successful presumption of outgo ratio mean of bundle technologist salaries and fig of STEM students and graduates.

Global averages surpassed, salaries stay low

The metropolis surpassed planetary averages connected respective counts specified arsenic ecosystem value, full VC funding, full early-stage funding, exit magnitude and exit count. With 30 progressive unicorns, Bengaluru is mode up of the planetary mean fig of unicorns astatine 11.

The ecosystem is valued astatine $153 billion. The full VC backing that flowed successful betwixt 2021 and 2025 amounted to $39 billion, mode higher that the planetary mean backing of $5 cardinal for the corresponding period. The apical funded startups see Zepto, Meesho and Udaan. The exit magnitude betwixt 2021 and 2025 has besides been acold higher astatine $46 cardinal than the planetary mean of $7.6 billion.

However, the wage of a bundle technologist successful the city, arsenic of 2025, is recorded $19.6K, overmuch lesser than the planetary mean of $54K and the regional(Asian) mean of $27K.

Strong subsectors

“Bengaluru-headquartered startups person raised a full of astir $79 cardinal successful VC backing since 2010 including. The authorities has captured astir 46% of each VC investments into Indian startups, playing a cardinal relation successful a nationalist ecosystem that has created implicit 140,000 exertion startups during that aforesaid timeframe,” the study notes.

Terming AI and Deeptech, Aerospace, Space and Defence Tech, and Quantum Computing arsenic the subsector strengths of the region, the study besides highlights Karnataka authorities Startup Policy 2.0, programmes specified arsenic KATALYST and LEAP and Karnataka Digital Economy Mission (KDEM).

Ahead of Silicon Valley successful R&D

“In presumption of circumstantial parameters, we person done precise good successful ‘performance’ and successful ‘R&D’ wherever we are up of adjacent Silicon Valley. In presumption of AI readiness besides we person done precise well,” pointed retired B V Naidu, KDEM Chairman, speaking to The Hindu.

He acknowledged that the ecosystem needs to bash amended successful presumption of marketplace access, wherever Bengaluru Karnataka scored 7 retired 10 successful presumption of planetary reach, but lone 4 points successful section access.

“We person been talking to the authorities to springiness immoderate benignant of a preferential marketplace entree to the startup,” helium said.

Mr. Naidu besides added that the squad volition look into wherefore Bengaluru scored debased connected ‘talent’ and hoped to amended it successful the coming days.

In 2025, Bengaluru climbed 7 spots to scope the 14th place successful the ranking of planetary startup ecosystems. Mr. Naidu expressed hopes that the ecosystem tin ascent further up successful the coming years by moving connected the areas wherever it mislaid a fewer points this year.

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