Govt launches Tk 4b startup fund

The government has launched a Tk 400 crore fund to inject fresh capital into Bangladesh’s startup ecosystem, attract more local and international investment and strengthen the country’s venture capital industry.

Startup Bangladesh Limited (SBL), the government’s venture capital and fund management institution under the ICT Division, launched the initiative, titled ‘Bangladesh Fund of Funds’, at an event at ICT Tower in Dhaka’s Agargaon on Sunday.

Minister for Posts, Telecommunications and Information Technology, and Science and Technology Fakir Mahbub Anam said Bangladesh had no shortage of talented entrepreneurs and innovative ideas, and the government was working to create an investment-friendly environment so that promising ventures did not fail for lack of funding.

He said the Fund of Funds would be managed with the highest priority given to efficiency, good governance and professionalism.

“Bangladesh Fund of Funds is a game-changing initiative for our startup ecosystem. Through this, promising entrepreneurs will have opportunities to access necessary capital, skills and international networks,” he said.

“We believe innovation-driven enterprises will create employment, attract investment and make significant contributions to the country’s future economy.”
Startup Bangladesh has already invested around Tk 111 crore in 36 technology-based startups, the minister said, stressing that the private sector must also come forward alongside government funding.

He said initiatives should not remain confined to paper but must be implemented effectively. Through the Fund of Funds, the government will seek to bring more private and international capital into the country while creating opportunities for Bangladeshi startups to enter international markets.

Speaking as a special guest, Adviser to the Prime Minister Rehan Asif Asad said the venture capital and startup sectors would play an important role in diversifying Bangladesh's future economic growth.

Startups need not only financing but also mentorship, skills, market linkages and technological support, he said, adding that these should be ensured through the Fund of Funds.

He said the government was committed to protecting the interests of domestic and foreign investors and facilitating the repatriation of legally earned profits and capital.

Responding to a question, he said political considerations or personal connections would not be given priority in startup investments, which would be made on the basis of merit and fairness.

According to relevant sources, Bangladeshi startups attracted $1.2 billion in investment over the past decade, but local investors accounted for only 7 percent of the total. The government-backed fund is intended to address this disparity by increasing the flow of local capital and foreign investment into the sector.

The initiative is also expected to strengthen venture capital and startup support while creating more employment opportunities.

Morikawa Yuko, representatives of the Japan International Cooperation Agency, senior government officials, development partners, investors and other ecosystem stakeholders attended the event.