Bangladesh to Boost Startup Fund to $1 Billion to Spur Tech Investment

Bangladesh is set to significantly bolster its venture capital industry by gradually expanding the fund of the Bangladesh Startup Investment Company PLC (BSIC) to Tk 1,000 crore. ICT Minister Faqir Mahbub Anam announced the initiative in parliament, emphasizing its role in attracting greater private and international investment. This strategic move aims to strengthen the ecosystem for innovative, technology-based startups within the country.

To date, approximately Tk 109 crore has been channeled into 36 startups that have successfully passed the final approval stages. These ventures are primarily technology-based and characterized by their innovative approaches. The minister also noted that out of a total of 55 startups launched through Startup Bangladesh, 19 were subsequently rejected. These rejections occurred at various due diligence stages due to identified inconsistencies or disagreements over investment terms, highlighting a rigorous vetting process.

The impact of investments facilitated by Startup Bangladesh is already evident. Portfolio startups have experienced substantial growth, expanding their business operations and creating more than 7,000 direct employment opportunities. On average, these companies have seen their revenue and sales increase by at least five times, demonstrating the effectiveness of the venture capital support. Notable startups that have benefited include Chaldal, 10 Minute School, Sheba Platform, ShareTrip, iFarmer, Pickaboo, Intelligent Machines, SWAP BD, Care Nutrition, Truck Lagbe, Bongo, Pathao, and Shikho, among others.

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Steps are underway to gradually expand the fund of Bangladesh Startup Investment Company PLC (BSIC) to Tk 1,000 crore to strengthen the country’s venture capital industry and attract greater private and international investment.