A consortium of 39 commercial banks launched a new venture capital platform with a committed capital base of Tk 425 crore (approximately $35 million) to support the country's growing startup ecosystem.
The platform, titled Bangladesh Startup Investment Company (BSIC) PLC, formally inaugurated its first fund, "Ankur Bangladesh Fund 1," at a ceremony held at Radisson Blu Dhaka Water Garden in the city on Tuesday.
Banking sector is going through a painful situation, warned Finance Minister Amir Khasru Mahmud Chowdhury, as the launch of a startup fund signals a shift towards equity financing.
Speaking as chief guest at the programme, he said the investment climate is under strain and pointed to deep-rooted weaknesses, including poor discipline, misallocation of funds and erosion of confidence in the financial system.
He stressed that the crisis is structural rather than temporary, adding that fresh initiatives alone would not restore stability without strict reforms and accountability.
As special guest, Md. Mostaqur Rahman, Governor of Bangladesh Bank, said the next phase of financial development must be based on transparency, good governance and responsible innovation.
He added that venture capital must not repeat the shortcomings of conventional banking, and emphasised strong oversight and disciplined investment decisions to protect the new financing structure. He also highlighted the need to expand access so that emerging entrepreneurs are not excluded from the financial ecosystem.
Presiding over the programme, Mashrur Arefin, Chairman, Bangladesh Start-Up Investment Company PLC and chief executive officer of City Bank PLC described the initiative as a structural shift.
He said the platform is designed to connect local startups with global venture capital standards, combining funding with governance, mentorship and strategic support.
This is not symbolic financing, he asserted, but a long-term institutional framework.
He clarified that the fund will operate entirely on an equity basis. Startups will receive capital in exchange for ownership stakes, not loans. This aligns risk between investors and entrepreneurs and ensures that returns depend on business success rather than fixed repayments.
The fund has been created collectively by 39 commercial banks, each committing around one per cent of annual net profits to build a sustainable investment pool. The initial size stands between Tk 425 crore and Tk 600 crore, depending on phased contributions and deployment.
