Nepal has a growing middle class and a young population that is increasingly open to adopting new technologies and services; providing ample opportunities for startups to cater to the local market and scale their businesses. The Government has introduced various policies and initiatives to encourage entrepreneurship and support the startup ecosystem. These include tax incentives, access to funding, and the establishment of startup incubators and accelerators. While there has been an increase in the availability of funding opportunities, access to capital remains a challenge for many startups. Limited access to venture capital, lack of collateral for traditional bank loans, and risk-averse investor attitudes hinder the growth of startups. The retention of skilled talent can be a challenge for startups in Nepal. Many highly skilled individuals choose to work abroad due to better opportunities and higher salaries. Despite the challenges, the startup scene in Nepal is evolving rapidly and with continued support from the government, increased access to funding, and a growing entrepreneurial spirit, the prospects for startups in Nepal are promising.