Key Drivers of Startup Failure in India's Tech Hub: An Analysis of Karnataka's Innovation Ecosystem

Startups located in Karnataka, especially in Bengaluru, which is recognised as India's leading technology centre, have played a crucial role in driving national innovation and generating employment opportunities. However, a significant number of these startups do not survive beyond their initial years. This paper aims to compile existing literature, regional studies, and documented analyses to identify and clarify the main factors contributing to startup failures in Karnataka. We categorise these factors into demand-side, supply-side, organisational, and ecosystem-level elements, examine their interconnections, and provide actionable policy and founder-level suggestions to minimise the risk of failure. The primary causes identified include a lack of product-market alignment, insufficient funding or financial mismanagement, ineffective founding teams and execution, regulatory and infrastructure challenges, and fierce market competition.