Investment platform BSIC will not serve political motives, funds to solely support startup growth: Khosru
The initiative is being seen as the most significant effort to date to mobilise domestic financial capital for Bangladesh's startup ecosystem, which has historically relied heavily on foreign investors.
Finance Minister Amir Khosru Mahmud Chowdhury has said the new Bangladesh Startup Investment Company will operate free from political interference, noting that BSIC will use its funds solely to support the growth of startups.
The minister was speaking at the launch event at the Radisson Blu Water Garden Hotel in Dhaka, with officials announcing that 39 commercial banks have jointly launched the country's first institutionally governed venture capital platform.
"This fund will not be used for political motives, and there will be no political intervention," Khosru said.
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The platform, Bangladesh Startup Investment Company PLC (BSIC), launched its inaugural fund – Onkur Bangladesh Fund 1 – at the event.
At the same programme, Bangladesh Bank Governor Md Mostaqur Rahman said BSIC's independently managed funds would help strengthen the rural economy and support productive, technology-based enterprises.
"Bangladesh's next phase of financial development will require institutions that can support innovation while maintaining discipline, transparency and accountability," he said.
The initiative is being seen as the most significant effort to date to mobilise domestic financial capital for Bangladesh's startup ecosystem, which has historically relied heavily on foreign investors.
According to public deal data, Bangladesh's startup sector has raised more than $1 billion through over 450 disclosed transactions since 2010, though less than 7% of the funding has originated domestically.
The platform launched with committed capital of around Tk425 crore ($35 million). The partner banks will contribute 1% of their annual net profits to the fund, making it a recurring capital-based structure rather than a one-time allocation.
The fund will invest in seed, late-seed and Series A-stage startups.
The initiative was implemented with policy support from Bangladesh Bank, which allowed commercial banks to invest 1% of their net profits from the past five years in the startup sector and formulated the operational guidelines for BSIC.
BSIC Chairman and City Bank Managing Director Mashrur Arefin said the platform aims to connect Bangladesh's entrepreneurial ambitions with professionally managed capital and global venture standards.
He said the initiative would help startups scale up through stronger governance, improved access to finance and credible co-investment partnerships.
BSIC also announced the appointment of Sami Ahmad, senior adviser at global investment firm B Capital and former general partner at the company, as an adviser to its board.
Representatives from several international investment firms, including VentureSouq, Wavemaker Partners, 500 Global, Plug and Play, ADB Ventures, GFR Fund, Sturgeon Capital, Conjunction Capital and Orbit Startups, attended the launch event.
BSIC officials said the platform plans to complete its first three investments before the end of 2026 after appointing a managing director, chief investment officer and full investment committee later this year.
