Karnataka has introduced its Startup Policy 2025-2030, aiming to nurture 25,000 new startups over the next five years. It hopes that at least 10,000 of these will come from areas outside Bengaluru. The policy highlights the state’s goal to spread innovation and create a more balanced startup ecosystem across different regions.
To support this goal, the government has set aside ₹570.675 crore. This funding will improve access to money, strengthen incubation facilities, expand market opportunities, and simplify regulatory procedures. The state will focus on emerging and future-ready sectors like artificial intelligence, blockchain, quantum computing, biotechnology, and sustainability-driven technologies. The policy is built around seven main areas: funding and grants, incubation and infrastructure, mentoring and skill development, market access and expansion, international collaboration, inclusion and sustainability, and regulatory facilitation.
One of the main initiatives is the ₹75-crore “Beyond Bengaluru Cluster Seed Fund,” which aims to speed up startup growth in non-metro areas. The state will contribute ₹20 crore to the fund, while the rest will come from institutional and private investors. Initially, the fund will target Mysuru, Mangaluru, and the Hubballi-Dharwad cluster, providing equity and equity-linked investments starting from ₹50 lakh per startup, within regulatory limits. Key sectors include IT, electronics and semiconductors, biotechnology, and AVGC. The state has also launched ELEVATE NxT, a ₹150-crore deeptech grant program under the Local Economy Accelerator Program. This program offers up to ₹1 crore per startup through milestone-based funding. It is open to startups from all over India and supports fields like AI, robotics, biotech, quantum technologies, and green energy.
These announcements came along with the recognition of 146 startups selected under ELEVATE 2025, which will collectively receive ₹38.85 crore in grants. Notably, 43% of these startups are led by women, and an equal number are based outside Bengaluru. Since it began in 2017, the ELEVATE program has given out ₹287.85 crore to 1,230 startups across Karnataka.
