Karnataka has announced an ambitious new Startup Policy for 2025–2030 aimed at strengthening the state’s position as India’s leading innovation hub while expanding entrepreneurial opportunities beyond Bengaluru.
Under the policy, the state government plans to support the creation of 25,000 new startups over the next five years, with a special focus on decentralisation. At least 10,000 of these startups are expected to emerge from cities and clusters outside Bengaluru, marking a strong push toward inclusive and regionally balanced growth.
To back the initiative, Karnataka has allocated ₹570.675 crore, which will be utilised for funding support, incubation infrastructure, market access, and regulatory facilitation. The policy prioritises cutting-edge sectors such as artificial intelligence, blockchain, quantum computing, biotechnology, semiconductors, and sustainability-focused technologies.
Officials said the policy is structured around seven key pillars—funding and grants, incubation and infrastructure, mentoring and skill development, market access, international collaboration, inclusion and sustainability, and regulatory support—designed to create a comprehensive ecosystem for startups at every stage.
A major highlight of the rollout is the launch of the ₹75-crore ‘Beyond Bengaluru Cluster Seed Fund’, aimed at promoting startup growth in non-metro regions. The state government will contribute ₹20 crore to the fund, while the rest will be mobilised through institutional and private participation. In its initial phase, the fund will focus on emerging clusters in Mysuru, Mangaluru, and Hubballi–Dharwad.
The seed fund will provide equity and equity-linked investments starting from ₹50 lakh per startup and will target sectors such as IT, electronics, semiconductor manufacturing, biotechnology, and AVGC (animation, visual effects, gaming and comics).
In another significant step, the government launched ELEVATE NxT, a ₹150-crore deep-tech grant programme under the Local Economy Accelerator Program. The initiative will provide milestone-based grants of up to ₹1 crore per startup, encouraging innovation in areas such as AI, robotics, quantum technologies, green energy, and advanced biotech. The programme is open to startups across India, reinforcing Karnataka’s role as a national innovation magnet.
The policy announcements were made at an event honouring 146 startups selected under the ELEVATE 2025 programme. These startups will receive a total grant support of ₹38.85 crore. Notably, around 43 percent of the selected ventures are women-led, and a similar proportion are based outside Bengaluru, reflecting the state’s focus on diversity and regional inclusion.
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Since its inception in 2017, the ELEVATE programme has supported 1,230 startups with grants totalling ₹287.85 crore, helping many early-stage ventures scale and succeed.
Industry experts have welcomed the new policy, calling it a forward-looking roadmap that not only strengthens Karnataka’s startup ecosystem but also ensures that innovation and entrepreneurship reach every part of the state.
With the Startup Policy 2025–30, Karnataka aims to build a more resilient, inclusive, and globally competitive innovation ecosystem—cementing its reputation as the startup capital of India.
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