Bangladeshi start-ups face $12b funding gap, receive just $41m: Survey

Bangladesh's start-up sector is grappling with a significant funding shortfall, with a new survey revealing that the country's young innovators require $12 billion annually but received only $41 million in 2024, a sharp 41% decline from 2023.

The findings were presented by Shakila Sattar Trina, founder and vice chairman of The Earth, at the Global SDG Youth Summit 2025, highlighting the acute challenges faced by Bangladeshi entrepreneurs, particularly in green and climate-friendly innovation.

Trina presented the results during the panel discussion on the summit's second day, titled "Next generation climate solutions: Youth leadership in green innovation," held at the Institute of Architects Bangladesh (IAB) auditorium in Agargaon, Dhaka, today (25 September).

According to the survey, Trina said that while demand for sustainable and eco-friendly products is surging both domestically and internationally, resources to scale up such ventures remain almost entirely absent.

Local investors contributed only 2% of the $41 million total, with 98% coming from international sources, raising concerns about long-term ownership and sustainability of Bangladesh's innovation ecosystem.

"This disjointed approach and overreliance on foreign capital is stifling the potential of our young innovators," she stated.

Despite the bleak figures, the presentation emphasised strong opportunities. Surveys indicate that 73% of Bangladeshi consumers are willing to pay more for sustainable products, ranging from organic food and jute bags to green housing and renewable energy solutions.

Trina added, "Bangladesh also has an array of policies on renewable energy, climate change adaptation and green banking. Youth entrepreneurs can access green loans, start-up funds and tax incentives, while global donors and climate funds offer grants and low-interest loans for innovative ventures."

Citing International Labour Organization data, she noted that 24 million new green jobs could open globally by 2030. "Bangladeshi youth can be job creators, not just job seekers. With the right support, our youth can lead the way," she said, urging stronger backing from NGOs, universities and social enterprises to test and scale community-focused models.

Dipti Das, former education adviser at USAID Bangladesh, said, "The solution for youth empowerment lies within our system. For this, we need connections between support and innovators. Local support for innovators at the local level is more needed."

Tanjim Ferdous, communication, campaign and innovation management expert, added, "In our country policy, we need to establish youth-focused green innovation funds. Expand and decentralise incubation and mentorship programmes beyond Dhaka."

Anwar Hossain, executive director of The Earth, noted, "Environmental issues are all about political issues. Bangladesh's biggest strength is its youth, but we are lagging in the support we need to advance our innovations. Bangladesh lags behind Ghana in Africa in terms of innovation. We don't have much green innovation. Our neighbouring countries have worked on over 100 EVs, but we haven't done much."