In 2021, the Indian startup ecosystem did exceptionally well. Not only last year but over the years, the startup ecosystem has been receiving an overwhelming response from investors and gaining momentum across different growth stages in a startup journey, including seed-stage funding. 

This growth is propelling the Indian entrepreneurial ecosystem and is providing a boost to young entrepreneurs to come up with disruptive ideas.

Though this growth is good, it is not uniform across different Indian states. Cities like Bangalore, Delhi, Gurugram and Noida are leading the startup space in terms of the number of startups and overall startup ecosystem growth.

According to India’s Economic Survey 2021-2022, between April 2019 and December 2021, Delhi added more than 5,000 startups to its tally, while Bengaluru launched 4,514.

Though Delhi added more startups, Bangalore still has the highest number of companies that reached unicorn status last year and received a substantial share of investment inflow.

Just the way Bombay is a city of dreams for aspiring actors, Bangalore, on the other hand, has been doing the same to startups for quite a long time now. Whether it be access to talent, financing, or support for services like new company registration in India, Virtual CFO, financial modeling for startups, etc., Bangalore is leading from the front.

Top 5 Reasons Why Bangalore Is Dominating The Indian Startup Ecosystem

In this article, we will talk about factors why Bangalore is dominating the Indian startup ecosystem.

1. The Tech Supremacy

Bangalore has already achieved the status of being the Silicon Valley of India, with the humongous number of IT companies that operate there.

It is a place to look out for amazing tech brains and innovative ideas, which is generally essential for most startups to have a good amount of tech backing. The present means of scaling up is only feasible with leveraged tech, and Bangalore has encapsulated this to create wonders. This very well explains why startups that come from Bangalore have a higher probability of upgrading to a Unicorn.

2. Cost of Living

Not only are businesses, including multinationals and startups, rising at an alarming rate but so are lifestyle options for the typical consumer, thanks to the growing service sector and an active real estate market. The BBMP, or Bruhat Bengaluru Mahanagara Palike (Metro Bangalore Municipal Corporation), has also offered inhabitants a variety of economic utilities, such as free water, a well-connected bus system, reliable electricity, and more. 

Bangalore, after cities like Delhi, Bombay, Chennai, Kolkata, and others, is the sixth city to host the most Fortune firms. The average monthly spending in Bangalore can also stretch to the lifestyle of the city’s poshest districts.

3. Meetups and Events

Bangalore is the city that conducts a plethora of meetups, hackathons, and other events all around the year. This aspect contributes to one of the most important reasons why the city is a startup haven. These gatherings allow aspiring entrepreneurs to mix with the community and share their stories of overcoming obstacles and attaining their objectives.

They also gain ideas and inspiration from the speakers and other attendees and the opportunity to present their ideas, products, and potential and network with one another.

4. Investors’ Count

Funding for startups is essential as it lets them get off the ground faster. A large number of venture capitalists and angel investors in Bangalore are quite easy to find.

You’ll find your guardian angel here if you have a brilliant idea, the correct state of mind, vision, motivation, and the right direction for your startup. Entrepreneurs can also seek money from the Karnataka government if their businesses are registered under the Karnataka Shops and Commercial Establishment Act, 1961.

In 2015, the Karnataka government announced a startup policy and established multiple funds totaling over Rs 300 crores to support companies in fields such as biotechnology, tourism, and animation.

5. The Unicorns

The best way to judge how an organization or a group of organizations and factors treat a startup is to check the ratio of unicorns to startups once the substantial number of startups is high. 

Bangalore stays way above any other city, being the cradle with around 30 of the 100 Unicorns of India. The major Unicorns born from Bangalore include the likes of BYJU’s, Swiggy, Razorpay, Blackbuck, Acko, MPL, Cred, Meesho, Cure.fit, etc. With all the previously mentioned factors, it becomes fairly resourceful for the founder to find the perfect workforce, quality labour, immense upscaling opportunities, and guidance toward the right direction.

Final Thoughts:

These above-mentioned factors reflect the growth opportunities startups get when they operate from Bangalore. The city provides startups with the abundant nurturing they need to grow and dominate the global business landscape. Also, with the state government providing the best infrastructure for business growth for startups, Bangalore is indeed the Startup City of India.

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