Dave McClure, founding partner at 500 Startups, a U.S. based seed fund and startup accelerator, is setting up a seed fund of $10 million for India. McClure says that he’s impressed by the online retailer Flipkart and advertising platoform InMobi growth; and said that, new ventures in Bangalore such as online ticketing firm red-Bus are "just really impressive".

A high density of entrepreneurs and investors is also drawing established entrepreneurs to relocate to the city. Pallavi Nadhani, who moved his venture Fusion Charts from Kolkata to Bangalore, two years ago and has since clocked revenues of 40 crore.

Thanks for dozens of new companies building products in information technology, healthcare, education and retail, Bangalore’s reputation as a hub for cutting-edge technology is getting recognized globally.

Globally, nearly 25 million Smartphones and tablets that were sold since April last 2011 use technology built by city based venture Ittiam Systems. The technology by Ittiam Systems, enable high definition video playback and camcorder applications. And another city based venture, Mistral Solutions has developed wearable video cameras used by law enforcement agencies across the US.

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