Mukund Mohan, CEO of Microsoft Ventures in India, says the city has the right mix of talent, great entrepreneurs and a thriving ecosystem that nurtures innovation. He also added that the city has great support from a growing list of venture investors, early seed investors and smart capital. All this and other grassroots networking organizations for startup, bring together a dynamic, consistent and ever-learning startup ecosystem that makes it easy to take a plunge into entrepreneurship.

In November 2012, Bangalore was among 20 influential startup ecosystems around the world, as ranked by global research firm Startup Genome. The city has scored best rank in Mindset Index, measuring entrepreneurs' high risk appetite, strong work ethic and ability to overcome challenges faced by startups.

An MIT Technology Review article by AnnaLee Saxenian, dean of the University of California, Berkeley, School of Information, says, "Where global technology centres have successfully developed — as in Bangalore — it's been because people 'marinated' in Silicon Valley and then returned home to start companies."

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Sanjay Anandram, venture partner with Seedfund, says that the organizations like Open Coffee Club, Barcamps, Startup Saturday, and Mobile Monday, are keeping entrepreneurial ventures active in the city. However, he also added that the city is still capital starved and there is very little local money available to entrepreneurs.

And VentureIntelligence estimates that startup incubators can incubate and mentor up to 60 companies a year, almost twice the number Delhi does.