Lack of incentives, ecosystem and support system for startups in other parts of the state has meant that the dream of "Beyond Bengaluru" has remained just on paper.
Accusing the government of "only talk and no action on ground", experts blame complex processes for approvals besides corruption as major reasons for startups failing to takeoff in other districts.
According to a response from the Union Ministry of Commerce & Industries to a question from Annasaheb Jolle during the recent Lok Sabha session, it said Karnataka over the last three years has added 6,429 startups, of which 5,062 are housed in Bengaluru city alone, follwed by Bengaluru Rural (358), Mysuru (193), Dakshina Kannada (136) and Belagavi (108).
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Karnataka R&D Policy Task Force chairman Ashok Shettar said for the last two years the government has been talking a lot about "Beyond Bengaluru" but on the ground, there have been hardly any investments.
"The government must provide labs, incentives and other facilities in the rest of Karnataka. However, nothing has materialised. Instead, the government has allocated Rs 500 crore to improve the Bengaluru ecosystem," he said.
Shivayogi Turmari, Head of KLE Centre for Technology Innovation and Entrepreneurship (CTIE), said "Beyond Bengaluru" is being driven by people based in Bengaluru, who know little about the needs of other parts of Karnataka.
Dr P M Veeresh Sharma, who runs Chemognesis R&D centre, a pharmaceutical startup in Dharwad said, "At every stage we need to bribe officials." He said it took him 18 months to get approvals.
Hitesh Dharmdasani, MD of Belagavi-based Informant Networks, says, "Every startup looks at its bottomline and if the government does not address their concerns no one will invest in tier-II cities."