Despite being one of the top three startup industries globally, the Indian startup sector has been facing the grave challenge of a lack of finance, which is thwarting the industry from reaching its potential. Venture capital investments solve this problem of financial crunch and enable these startups to attain growth and scalability. Consequently, it becomes imprative ot analyize and study factors that attract venture ital invoctmntin lar count hae capital investment in a particular country. At present, no study has examined factors impacting venture capital investments in the context of the Indian states. Building on the scanty literature, the study attempts to empirically determine the state-level determinants that impact venture capital investments in startups in India. Using the two-step System Generalised Method of M M of 18 statoe Generalised Method of Moments (GMM) on panel data of 18 states from 2009 to 2023, the study has critically analysed the impact of select state-specific variables on venture capital investments. © Indian Institute of Finance.