Karnataka to Launch Rs 70-75 Crore Innovation Fund for Cities Beyond Bengaluru

• Karnataka government, with private investors, will launch a Rs 70-75 crore local innovation fund for emerging cities like Mangaluru.
• The fund aims to provide seed capital for startups in regions with limited institutional funding compared to Bengaluru.
• Accel India founding partner Prashanth Prakash announced the fund at TiEcon Mangaluru 2026, with Rs 20 crore specifically for Mangaluru.
• The Alternative Investment Fund (AIF) has received SEBI approval and will launch soon, involving multiple entities to reduce investor risk.
• Experts emphasized the need for Global Capability Centers (GCCs) and a shift towards future-facing sectors like hardware, AI, and deep tech to foster local startup growth.

Why It Matters: Karnataka is launching a significant innovation fund to boost startup ecosystems in cities beyond Bengaluru.