Bank-Backed Boost: Bangladesh Launches $425 Crore Startup Investment Platform
For the first time, a large-scale institutional investment structure has been introduced in the country’s startup sector. A new venture capital platform named Bangladesh Startup Investment Company PLC (BSIC) has been established with an initial fund of BDT 425 crore, backed by the participation of 39 commercial banks. Stakeholders say this marks a significant milestone in domestically funded startup financing.
The initiative was formally launched on Tuesday, 12 May, at a five-star hotel in the capital. Representatives from various commercial banks in the country attended the event. According to the organizers, the platform has been developed to ensure long-term financing for technology-driven innovative entrepreneurs.
Sources at BSIC stated that this is not a one-time fund. Participating banks will contribute a portion of their net profits to the fund each year. As a result, the fund size is expected to grow over time, enhancing its investment capacity.
Under this new platform, startups will receive funding across three stages—seed, late-seed, and Series A. The entire operation will be conducted under the policy and prudential framework of Bangladesh Bank to ensure transparency and accountability in the investment process.
Speaking at the event, Finance and Planning Adviser Amir Khasru Mahmud Chowdhury said that the country’s economy is entering a new reality where organized investment in innovation-based entrepreneurship is critically important. He noted that such institutional investment in the startup sector will boost the confidence of young entrepreneurs and help build a creative economy.
He further emphasized that there will be no political interference in this investment mechanism, adding that ensuring transparency and good governance in the financial sector remains a top priority for the government.
As a special guest, Dr. Mostakur Rahman stated that advancing the economy to the next stage requires institutions built on innovation, discipline, transparency, and accountability. In his view, BSIC will play an effective role in channeling domestic capital to technology-driven entrepreneurs.
The Governor said that although there was an initial plan to form a fund of BDT 500 crore, later all scheduled banks were instructed to contribute 1 percent of their net profits to build the fund. He also acknowledged the important role played by the Association of Bankers Bangladesh in implementing this initiative.
He added that efforts must be made to ensure the benefits of this investment reach marginal communities. At the same time, the banking sector must play a more active role in building a cashless economy in the country.
Stakeholders noted that since 2010, more than USD 1 billion has been invested in the country’s startup sector through over 450 deals. However, the share of domestic capital remains below 7 percent. As such, this new bank-backed venture capital structure is expected to open new opportunities for the country’s technology-based entrepreneurs and innovation ecosystem.
DBTech/SH/EK/OR
