New Delhi, April 24 -- Tracxn has recently released its Q1 2025 Karnataka Tech Funding Report, offering a comprehensive view of the region's startup ecosystem performance over the first quarter of the year. The report reveals a substantial contraction in funding activity, both quarter-over-quarter and year-over-year, alongside a complete absence of unicorns or $100M+ funding rounds. Despite the downturn, specific sectors like Enterprise Applications, FinTech, and Retail emerged as strong contributors to the overall capital raised.

A total of $633M was raised in Q1 2025, marking a 23% decline compared to the $825.5M raised in Q4 2024 and a 46% drop from the $1.20B raised in Q1 2024. This significant downturn highlights a widespread pullba...