Karnataka Startup Funding Drops 28%
Late-stage startup funding in Karnataka, home to Bengaluru, fell by 28% year-on-year in 2025, with late-stage capital decreasing to $1.8 billion. In contrast, Maharashtra's funding levels saw only a 6% decline. Early-stage funding in Karnataka remained resilient at $1.6 billion, indicating continued investor interest in new ventures.
- The decline in Karnataka was part of a broader national trend where investors shifted focus from hyper-growth to sustainable business models; total funding for Indian startups in 2025 was approximately $10.5 billion. - The national slowdown was most severe in late-stage funding, which fell 27% in the first half of 2025 as investors backed fewer companies with larger, more selective checks in resilient sectors like EVs, logistics, and AI. - In the first nine months of 2025, Maharashtra's ecosystem showed greater resilience, with funding increasing 11% to $2 billion, driven by a 69% surge in early-stage deals and a 444% jump in investment into real estate and construction tech. [cite: 8, 1
