VCPEAB sought policy support and tax exemption for venture capital and startups
In order to cope with the post-pandemic scenario and to accelerate the investment process for venture capital and start-ups as well as access to finance, Venture Capital and Private Equity Association of Bangladesh (VCPEAB) called for tax exemption for alternative fund managers and create a 'fund of fund' with the investment of Bangladesh Bank.
The call was made at a virtual roundtable discussion titled 'Venture Capital and Startups for a Post-Covid Resilient Economy' organized by the organization on Thursday. The VCPEAB jointly organize this virtual roundtable discussion with the Capital Market Journalists Forum (CMJF) keeping the 2021-22 national budget ahead of next June.
Planning Minister MA Mannan was present as the chief guest at the round table session. Chairman of Bangladesh Securities and Exchange Commission (BSEC) Prof. Shibli Rubaiyat-ul-Islam, BSEC Commissioner Prof. Dr. Sheikh Samsuddin Ahmed and Deputy Governor of Bangladesh Bank Abu Farah Md. Nasser were present at the session as special guests. Arif Khan, Vice Chairman, Shanta Asset Management Limited, presented the keynote address at the event, which was presided over by VCPEAB President Shamim Ahsan.
Planning Minister MA Mannan MP said the government is cooperating with the venture capital and startup sector and has taken various initiatives in collaboration with regulators, private financial institutions and venture capital institutions. We jointly plan to create an environment where startups can truly survive and play an important role in the country's economy. It also aims to create the necessary policies to make it easier for entrepreneurs to survive and conduct business activities.
Professor Shibli Rubaiyat-ul-Islam, Chairman, Bangladesh Securities and Exchange Commission (BSEC), said, "We are constantly implementing new laws and policies to increase investment in startups and bring startups to the stock market in a proper manner." Startups use innovative business models to accelerate growth. Through saturation and investment in the stock market, we are working to support these businesses so that they can bring the latest innovations to the country's economy.
VCPEAB President Shamim Ahsan said, "We firmly believe that in the next 15 years, most of the world's companies will be engaged in the business of making an impact and most of the people of the world will receive products and services from these companies." This will help us to be less vulnerable to pandemics like Covid-19 and build a stable economy. Various government departments and agencies such as the Ministry of Finance, the Ministry of Planning, the ICT Department, the Central Bank, the Securities and Exchange Commission and the National Board of Revenue need to come forward to accelerate the growth of this impact ecosystem through supportive policies and tax breaks.
BSEC Commissioner Prof. Sheikh Samsuddin Ahmed said venture capital could play a leading role in creating new startup businesses in the country's economy. Startups will no longer have to reach out to the highly educated and privileged class only in cities where technology is rich. Instead, they need to decentralize their business and reach out to more people.
Bangladesh Bank Deputy Governor Abu Farah Nasser said Bangladesh Bank would provide maximum support to startups and venture capital under the current policy. The market has already created a demand for credit facilities and the banking sector needs to play a supportive role in establishing itself as an important part of the venture capital and startup ecosystem.
Those who were present among others were Hassan Imam Rubel, President, Capital Market Journalists Forum, Zayed Bakht, Chairman, Agrani Bank, Asif Mahmud, Managing Director, CIF Bangladesh Ventures LLC, Anha Pham, Chief Partner Officer, Microsoft Southeast Asia, Maliha Qadir, Managing Director, Sahaj. General Secretary Shawkat Hossain, Capital Market Journalists Forum General Secretary Munir Hossain, Chaldal Chief Executive Officer Wasim Alim, BD Ventures Limited Managing Director Shafiq-ul-Azam, Maslin Capital Managing Director A Hafeez, KH Asadul Islam, Managing Director, Alliance Capital Asset Management; Mahbub H. Majumder, Managing Director, Athena Ventures; Javed Noor, General Manager, IDLC Finance Ltd., Mahadi Hassan, Chief Operating Officer of Athena Ventures.
