The government is set to provide grants of up to Tk50 lakh to startup companies to foster innovation-based new entrepreneurs and develop technology-driven businesses in the country.
Along with Bangladeshi citizens, non-resident Bangladeshis (NRBs) will also be eligible to apply for these grants.
To facilitate this, the Information and Communication Technology (ICT) Division has formulated the "Information and Communication Technology Related Startup Grant Management and Operation Policy, 2026."
According to the policy, grants ranging from Tk1 lakh to Tk50 lakh will be disbursed depending on the various stages of a startup's development.
Grants of Tk1 lakh to Tk3 lakh will be allocated for idea development, Tk3 lakh to Tk10 lakh for prototypes and Minimum Viable Products (MVPs), and Tk10 lakh to Tk30 lakh for investment readiness, bridge, and matching funding.
However, considering justification and special circumstances, the grant amount can reach up to Tk50 lakh.
Individual applicants at the prototype and MVP stages can receive up to Tk5 lakh.
The ICT Division issued the relevant policy on November 11, followed by a formal gazette notification on November 12.
The policy states that these grants will be awarded to transform innovative ideas from early-stage startups into marketable products and services, create new ventures, generate employment, enhance export capabilities, and attract domestic and foreign investment.
Another objective is to ensure transparency, competition, accountability, and result-based financing in government grant management.
The policy outlines three distinct stages for startup growth:
- First Stage: Pre-ideation and idea development.
- Second Stage: Prototype and validation.
- Third Stage: Investment readiness and bridge funding.
- First Stage: Focuses on identifying innovative ideas, team building, problem analysis, initial mentoring, and idea validation.
- Second Stage: Involves prototype creation, Minimum Viable Product (MVP) development, user and market testing, and technical verification.
- Third Stage: Provides support for product development, market expansion, sales growth, investment readiness, due diligence, and establishing corporate governance.
The funding is divided into six specific categories:
- Idea Grant: Can be used for idea validation, team building, market surveys, initial research, and design.
- Prototype Development Grant: Allocated for hardware or software development, testing, and technical verification.
- Pre-Seed Grant: Awarded for MVP creation, market validation, initial customer acquisition, and business model development.
- Seed Grant: Funds can be spent on product refinement, marketing, customer acquisition, business development, certification, and intellectual property (IP) registration.
- Investment Readiness Bridge Grant: Provided to keep startup operations running and make them investment-ready during the brief period right before securing private investment. The maximum duration for this bridge grant is six months.
- Special Innovation Grant: For unique, high-potential projects meeting special criteria.
The policy gives priority to initiatives in Information and Communication Technology (ICT), Deep Tech, Digital Public Infrastructure, Agri-Tech, Health-Tech, Ed-Tech, Fin-Tech, Climate and Green Tech, Manufacturing and Industrial Tech, and the Creative Economy.
Additionally, priority will be given to Biotech, Social Innovation, Marine Tech, Art and Manufacturing Tech, Transportation Tech, Energy Tech, and Advanced Tech.
