Bank-led investment firm eyes $35m funding for startups in four months
Officials, however, indicated that the number of recipient companies could exceed three during the period.
The Bangladesh Startup Investment Company (BSIC), formed by 39 private banks, plans to invest from its inaugural $35 million fund, Onkur Bangladesh Fund 1, in at least three companies within the next four months, officials said.
Officials, however, indicated that the number of recipient companies could exceed three during the period.
The announcement came at the launch event of BSIC at the Radisson Blu Water Garden Hotel in Dhaka today (12 May), where officials said 39 commercial banks had jointly launched the country's first institutionally governed venture capital platform.
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The platform launched with committed capital of around Tk425 crore ($35 million). Participating banks will contribute 1% of their annual net profits to the fund, creating a recurring capital structure rather than a one-time allocation.
BSIC officials said the fund will invest in seed, late-seed and Series A-stage startups, with agro-based and technology-focused companies likely to receive priority.
However, the company will not provide funding at the very initial stage of a startup.
Instead, it plans to invest in ventures that have already demonstrated operational and growth potential, with further investments to be made in phases to support expansion.
Officials also said the disbursement policy is still being finalised, although investments are expected to be made through equity participation.
Alongside domestic investment, BSIC is also working to attract foreign investment into Bangladesh's startup ecosystem to strengthen funding opportunities for local ventures.
The launch event was attended by representatives from several international investment firms and development-focused organisations, including VentureSouq, Wavemaker Partners, 500 Global, Plug and Play, ADB Ventures, GFR Fund, Sturgeon Capital, Conjunction Capital and Orbit Startups, as well as regional technology media outlets Tech in Asia and FWDstart.
Officials said BSIC is currently in discussions with international investors and development partners to mobilise additional capital alongside its own investments.
The initiative is being seen as a major effort to mobilise domestic financial capital for Bangladesh's startup ecosystem, which has historically relied heavily on foreign investors.
