Info-tech

Bengaluru, the perfect launchpad for tech start-ups: Karnataka Vision Fund Report

Our Bureau Bengaluru | Updated on December 17, 2019 Published on December 17, 2019

With over 9,346 tech start-ups launched since 2010, and 5,541 in the last three years alone, Bengaluru has emerged the place to start-up.

Releasing ‘The Bengaluru Innovation Report 2019’ brought out by the Karnataka Vision Fund, on Tuesday, CN Ashwath Narayan, Karnataka Deputy Chief Minister and Minister for IT, BT and S&T said this tech start-ups cluster has attracted good number of investors.

“Bengaluru start-ups have raised over $31 billion in the last decade, which is over 45 per cent of the total investment that flowed in to the Indian start-up ecosystem. Since 2016, the city has witnessed more capital inflow (over $20 billion) than Delhi and Mumbai combined,” he added.

On the scale and maturity of start-ups, the Minister said “The city is the preferred destination for late stage investors with over 55 per cent of Series D+ investments in the country flowing into local start-ups.”

The report has been co-written with prominent names in the industry including Accel Partners, 3one4 Capital, IdeaSpring Capital, YourStory Media and Traxcn Technologies.

Ashwath Narayan said, “A lot has been written over the past decade on the city’s meteoric rise to being the largest technology hub in India, which has spawned several tech start-ups including some of the biggest names in the Indian ecosystem. This report looks closely at the ingredients of what makes the city such a great incubation centre for early stage ventures given the access to both a ‘tech savvy early consumer economy’ and a quality tech talent pool available from the city’s broader IT ecosystem. It also evaluates the performance of the ecosystem on a number of parameters including number of companies founded, average fund-raise size, number of unicorns in the city, among others that firmly cement the city’s places as India’s start-up capital.”

Highlighting the key points of the report, Ashwath Narayan said Iconic Flagship Start-ups: With 14 unicorns (44 per cent of unicorns in India) with a cumulative valuation of $61 billion (58 per cent of India’s), Bengaluru has been the biggest driver of the India start-up growth story.

The city is poised to grow even more rapidly with 43 per cent of soonicorns (potential unicorns) in the country being based out of Bengaluru. New emerging sectors such as Deep Tech could help the city become a global hub of excellence for certain sectors.

Progressive govt support

Policy innovations like the world’s first pan-sector regulatory sandbox along with the strong supporting infrastructure will continue to push innovation in the State and provide the right platform for start-ups to launch.

Published on December 17, 2019
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