Bangladesh has no shortage of talented entrepreneurs or innovative ideas and the government wants to build an investment-friendly ecosystem where promising ventures do not have to shut down due to a lack of funding, Minister for Posts, Telecommunications and Information Technology and Science and Technology Faqir Mahbub Anam has said.
The minister made the remarks on Saturday at the launch of the Bangladesh Fund of Funds, organized by Startup Bangladesh Limited at ICT Tower in Agargaon, Dhaka.
“Bangladesh has no shortage of talented entrepreneurs and innovative ideas. We want to create an investment-friendly environment where no promising initiative is held back because of a lack of funding,” Anam said.
He said the Fund of Funds would be managed with a strong focus on efficiency, good governance and professionalism.
Startup Bangladesh has already invested around Tk111 crore in 36 technology-driven startups, he said, adding that the private sector must also come forward to invest in startups rather than leaving the burden entirely on the government.
“Initiatives cannot remain limited to paper. We have to ensure that they translate into tangible outcomes,” the minister said.
Through the Fund of Funds, the government aims to bring more private and international capital into Bangladesh while creating opportunities for local startups to access global markets, he added.
Describing the Bangladesh Fund of Funds as a “game-changing initiative” for the country’s startup ecosystem, Anam said it was one of the government’s key measures to strengthen the sector.
“Through this initiative, promising entrepreneurs will have opportunities to access the capital, expertise and international networks they need,” he said.
He expressed optimism that innovation-driven companies would contribute significantly to job creation, investment attraction and the future growth of Bangladesh’s economy.
Special guest Rehan Asif Asad, adviser to the prime minister on the Posts, Telecommunications and Information Technology and Science and Technology Ministries, said venture capital and startups would play an important role in diversifying Bangladesh’s future economic growth.
“Startup companies need more than financing. They also require mentorship, skills development, market access and technological support,” he said.
The proposed Fund of Funds should therefore ensure these forms of support alongside investment, he added.
Asad also said the government remained committed to protecting the interests of domestic and foreign investors in Bangladesh and ensuring the smooth repatriation of legally earned profits and capital.
“A strong startup ecosystem can be built through collective efforts,” he said.
ICT Division Secretary Md Mamunur Rashid Bhuiyan said the government wanted to establish an environment in which venture capital and innovation could develop naturally.
“If successfully implemented, the Bangladesh Fund of Funds will not only increase investment in startups but also create a strong investment infrastructure for the country’s future economy,” he said.
Startup Bangladesh Managing Director and CEO Nurul Hai presented the structure, investment strategy, fund-manager selection process, co-investment mechanism and potential impact of the Fund of Funds at the event.
He said the proposed framework would invest in selected domestic and international venture capital funds with strong governance, professional fund management and credible investment strategies.
The formal process for selecting eligible venture capital fund managers also began through a Request for Expression of Interest (REOI) at the event.
The government-backed Bangladesh Fund of Funds, operated through Startup Bangladesh Limited under the ICT Division, has an initial size of Tk400 crore.
The initiative aims to increase the flow of domestic, international and development-partner investment into Bangladesh’s startup ecosystem while encouraging greater private-sector participation.
According to the initiative’s organizers, Bangladeshi startups have attracted around $1.2 billion in investment over the past decade. However, local investors accounted for only about 7% of the total.
The Fund of Funds seeks to address this imbalance by strengthening local institutional capital, attracting foreign investment and developing the country’s venture capital industry.
It is also expected to support startups at different stages of development, build the capacity of local fund managers, improve investment-management standards, facilitate knowledge and technology transfer, and create employment.
The initiative is ultimately aimed at strengthening Bangladesh’s position as an attractive destination for venture capital and innovation.
Representatives of the Japan International Cooperation Agency (JICA), including Morikawa Yuko, senior government officials, development partners, investors and other stakeholders from the startup ecosystem attended the event.