Best States Rankings 2025: States for Start-Ups That Are a Cut Above The Rest

Funding data for growth stage start-ups shows that Karnataka attracts the most capital for entrepreneurs. The presence of a robust investor network helps the state provide a good ecosystem, while its policy of decentralisation through promoting other hubs, such as Mysuru, Mangalore and Hubballi, supports entrepreneurs in other regions

With 76% more funding than the national average, the western zone has become the country's premier start-up hub. Southern states are close on its heels but the gap in investment levels is significant. The east is lagging far behind

Data for total revenue shows the usual start up story. Start-ups in Karnataka stood out in terms of generating the highest revenue.Maharashtra is catching up with Haryana, Telangana and Tamil Nadu far behind

Start-ups in Karnataka recruit the best of the workforce, ensure female workforce participation, have access to graduates who enrol in engineering courses and promote grassroots innovation. This has helped the state maintain its status as a global technology hub since the mid-1990s and focus its attention on creating new start-up clusters