Startup Bangladesh begins operations of Tk400cr Fund of Funds

Startup Bangladesh Limited (SBL) has launched the Tk400 crore Bangladesh Fund of Funds to mobilise local, international and development capital for the country's startup ecosystem.

The government-backed initiative opened with a Request for Expression of Interest (REOI) at a programme held at the ICT Division in Dhaka, according to a press release.

Startup Bangladesh is the government's flagship venture capital and fund management company under the ICT Division.

The Bangladesh Fund of Funds marks a shift in how public capital supports innovation in the country.

Rather than investing only in individual startups, the fund will channel capital through selected professional venture capital fund managers.

This model is intended to broaden market participation, strengthen investment governance and improve promising Bangladeshi startups' access to growth capital.

The release said the government's 2026 election manifesto strongly emphasised startups and entrepreneurship to create jobs, advance innovation and build a technology-driven economy.

In line with that commitment, the government has allocated Tk500 crore for startup development this fiscal year.

It has also introduced tax and value-added tax incentives, including a zero per cent turnover tax, to create a more supportive environment for young entrepreneurs and technology-driven startups.

Senior government officials, development partners, venture capital and private equity firms, startup founders, investors and other ecosystem stakeholders attended the programme.

Posts, Telecommunications and Information Technology Minister Fakir Mahbub Anam MP attended as chief guest.

Prime Minister's Adviser for Posts, Telecommunications and Information Technology Rehan Asif Asad was present as special guest.

ICT Division Secretary and Startup Bangladesh Chairman Md Mamunur Rashid Bhuiyan chaired the programme.

"The Bangladesh Fund of Funds can become a game-changing platform for our startup ecosystem," Fakir Mahbbub Anam said.

"It is the most important initiative we have taken to support the country's startups. It will help connect promising Bangladeshi entrepreneurs with the capital, expertise and global networks they need to grow," he said.

"Through this initiative, we want to build a stronger pathway for innovation-led enterprises to create employment, attract investment and contribute to Bangladesh's future economy," he added.

Rehan Asif Asad said Bangladesh had no shortage of talented entrepreneurs or innovative ideas.

"We want to rebuild the nation so that good ideas do not stop for lack of capital, investors can enter the market with confidence, and our most promising startups can grow from Bangladesh to the world," he said.

"The Fund of Funds is an important step in that journey. It will help bring together public capital, private investment, experienced fund managers, global networks and new market opportunities under one stronger ecosystem," he added.

Md Mamunur Rashid Bhuiyan said the initiative demonstrated the government's commitment to creating an enabling environment for venture capital and innovation.

"Our vision is to build a startup ecosystem that can grow on its own strength, where the government creates the foundation, private capital brings scale, and global investors bring knowledge, networks and new opportunities," he said.

"The Bangladesh Fund of Funds is a step towards that future," he added.

Startup Bangladesh Managing Director and Chief Executive Officer Nurul Hai delivered a presentation on the fund's proposed structure, investment approach, fund-manager selection process, co-investment mechanism and expected contribution to the startup ecosystem.

"The Bangladesh Fund of Funds is not just about providing capital. It is about building the proper ecosystem Bangladesh will need for its next generation of startups," he said.

"We want public capital to unlock much larger pools of private and international investment, strengthen professional fund managers, and give high-potential Bangladeshi startups a clearer path to scale.

"In that sense, the Fund of Funds is not simply another financing programme. It is part of the financial infrastructure we need to build a deeper, stronger and more globally connected startup economy," he added.

Japan International Cooperation Agency (JICA) Representative Morikawa Yuko said the Fund of Funds would deepen Bangladesh's venture capital market by attracting institutional and foreign investment.

She said it would also bring global venture capital firms into the ecosystem and expand access to finance for promising startups.

"The Sidecar Facility will complement this by strengthening the startup pipeline, increasing available capital, and improving investor capacity," she added.

Over the past decade, Bangladeshi startups have reportedly attracted approximately $1.2 billion in investment, while local investors accounted for only around 7% of deployed capital.

Through the Bangladesh Fund of Funds, Startup Bangladesh aims to create a multiplier effect by using each unit of public capital to attract additional private, institutional, and development financing into the country.

Startup Bangladesh said the fund's operationalisation marked an important milestone in its broader mission to build an inclusive, innovation-driven, and investment-ready Bangladesh.