The government is in the process of gradually increasing the fund of Startup Bangladesh Limited to Tk 1,000 crore to enhance the venture capital sector in the country and attract more private and international investments, announced Faqir Mahbub Anam, the Minister of Post, Telecommunications, and ICT Division.
During a parliamentary session, Minister Anam responded to a query from Md Ashraf Uddin MP, stating that about Tk 109 crore has been invested in 36 technology-driven and innovative startups that have received final approval.
He mentioned that 55 startups have been initiated through Startup Bangladesh, with 19 of them being rejected at different stages due to discrepancies identified during due diligence and disagreements over investment terms.
Notable startups supported by the initiative include Chaldal Limited, 10 Minute School Limited, Sheba Platform Limited, Tour Booking Bangladesh Limited (ShareTrip), iFarmer Limited, Silver Water Technologies Limited (Pickaboo), Intelligent Machines Limited, SWAP BD Limited, Care Nutrition Limited, Truck Lagbe Limited, Steller Digital Limited (Bongo), Pathao Limited, Shikho Technologies Bangladesh Limited, among others.
The minister highlighted that investments from Startup Bangladesh have facilitated the expansion of portfolio startups, leading to the creation of over 7,000 direct jobs and a minimum fivefold increase in revenue and sales on average.
Moreover, the portfolio companies have contributed more than Tk 180 crore in tax revenue to the government, surpassing Startup Bangladesh’s total investment by 1.7 times.
Minister Anam also pointed out the success of portfolio startups in entering global markets, introducing technological innovations, and attracting subsequent domestic and international investments. A majority of Startup Bangladesh’s investments have shown positive growth, moving companies towards sustainable business models.
Regarding investment policies, Startup Bangladesh focuses on supporting technology-based startups through equity and equity-linked investments rather than providing direct loans to startups.
To bridge the funding gap in the startup ecosystem, the government has initiated specialized funds. Startup Bangladesh is set to establish funds totaling around Tk 400 crore and a co-investment fund of Tk 300 crore to boost startup financing with experienced fund managers.
The minister emphasized plans to gradually increase the fund size to Tk 1,000 crore in the future, aiming to reinforce the domestic venture capital industry and attract more private and international investments.
