Bangladesh Launches Tk 400cr Fund of Funds for Startups
DHAKA, Aug 16: Bangladesh has launched a Tk 400 crore government-backed Fund of Funds aimed at boosting investment in startups, attracting local and international capital, and strengthening the country’s venture capital ecosystem.
The initiative was formally launched by Startup Bangladesh Limited (SBL) at a ceremony held at the ICT Tower in Agargaon on Sunday.
Speaking at the event, Fakir Mashruk Anam, Minister for the Ministry of Posts, Telecommunications and Information Technology and the Ministry of Science and Technology, said Bangladesh has no shortage of talented entrepreneurs and innovative ideas, but promising ventures should not be held back by a lack of financing.
“We want to build an investment-friendly environment where no promising initiative stalls due to a lack of funds,” he said.
The minister said the Fund of Funds would be managed with the highest priority given to competence, good governance and professionalism.
Startup Bangladesh has already invested around Tk 111 crore in 36 technology-based startups, he said, adding that the government alone cannot finance the country’s growing startup sector. The private sector must also come forward with greater investment, he noted.
Anam stressed that government initiatives must move beyond paper-based plans and deliver tangible benefits through effective implementation.
He said the Fund of Funds would help attract more private and international capital while creating opportunities for Bangladeshi startups to access global markets.
Describing the initiative as a “game-changing” step for Bangladesh’s startup ecosystem, the minister said it would provide promising entrepreneurs with access to capital, expertise and international networks.
Speaking as the special guest, Rehan Asif Asad, Advisor to the Prime Minister for the Ministry of Posts, Telecommunications and Information Technology and the Ministry of Science and Technology, said the venture capital and startup sector would play a crucial role in diversifying Bangladesh’s future economic growth.
He said startups require more than financing, including mentorship, skills development, market linkages and technological support. The proposed Fund of Funds should ensure these forms of support alongside investment, he added.
Rehan also said the government is committed to protecting the interests of local and foreign investors and ensuring the smooth repatriation of lawful profits and capital.
In his presidential address, Md. Mamunur Rashid Bhuiyan, Secretary of the ICT Division, said the government aims to create an environment where venture capital and innovation can flourish naturally.
“If successfully implemented, the Bangladesh Fund of Funds will not only boost startup investment but also build a resilient investment infrastructure for the country's future economy,” he said.
Nurul Hai, Managing Director and CEO of Startup Bangladesh Limited, presented the fund’s structure, investment strategy, fund manager selection process, co-investment framework and potential economic impact.
Under the proposed structure, investments will be made in selected local and international venture capital funds based on strong governance, professional fund management and credible investment strategies.
The formal process for selecting eligible venture capital fund managers was also launched through a Request for Expression of Interest (REOI) at the event.
Over the past decade, startups in Bangladesh have attracted nearly US$1.2 billion in investment, but local investors accounted for only around 7% of the total.
The Bangladesh Fund of Funds seeks to address this gap by strengthening local institutional capital, attracting foreign investment and supporting the development of the domestic venture capital industry.
The initiative is also expected to establish a sustainable startup financing framework, strengthen funding opportunities for startups at different stages, improve the capacity of local fund managers and raise investment management standards.
According to Startup Bangladesh, the fund will also facilitate knowledge and technology transfer, contribute to job creation and help position Bangladesh as a more attractive destination for venture capital and innovation.
Startup Bangladesh Limited, the government’s flagship venture capital and fund management company under the ICT Division, is implementing the initiative to increase investment flows from local and international investors and development partners while encouraging greater private-sector participation.
The initial size of the Bangladesh Fund of Funds is Tk 400 crore.
The launch event was attended by Morikawa Yuko, representative of the Japan International Cooperation Agency (JICA), senior government officials, development partners, investors and other stakeholders from Bangladesh’s startup ecosystem.
