Desk Report:
The Bangladesh Fund of Funds has officially launched its activities to create new opportunities for investment and financing in the startup sector of Bangladesh. Its initial size has been set at Tk 4 billion. As part of the activities of this government-sponsored fund, a Request for Expression of Interest (REOI) has already been published.
Through this initiative, run by Startup Bangladesh Limited, the aim is to reach local and international investment and development capital to the country’s promising startups through professional venture capital fund managers.
Those concerned say that the Bangladesh Fund of Funds can bring a significant change in the conventional concept of government financing in the country’s startup sector. Government money will act as ‘catalytic capital’ instead of direct investment here. Through this, initiatives will be taken to attract institutional and international investment, create skilled venture capital fund managers, increase financing opportunities for high-potential startups, and improve investment management and market standards.
In addition, the fund is expected to play a role in connecting Bangladeshi entrepreneurs with global investors, business networks, and international experience.
In the last decade, startups in Bangladesh have attracted about 1.2 billion US dollars in investment. However, during this time, the contribution of local investors was only about 7 percent of the total investment. As a result, the Fund of Funds is being seen as an important initiative to fill the local investment gap and bring private, institutional, and developmental investment to the startup sector on a larger scale.
The formal inauguration of the fund was attended by Minister of Posts, Telecommunications, and Information Technology Fakir Mahbub Anam, MP; Prime Minister’s Advisor on Posts, Telecommunications and Information Technology Rehan Asif Asad and ICT Secretary and Chairman of Startup Bangladesh Limited Md. Mamunur Rashid Bhuiyan.
At the event, Nurul Hai, Managing Director and CEO of Startup Bangladesh Limited, highlighted the proposed structure of the fund, investment strategy, fund manager selection process, co-investment mechanism and its potential contribution to the country’s startup ecosystem.
At the same time, Morikawa Yuko, Representative of Japan International Cooperation Agency (JICA), highlighted the fund’s potential to deepen the venture capital market in Bangladesh and attract institutional and foreign investment.
According to those concerned, the Bangladesh Fund of Funds is not just a new financing program; rather, it is an important step in building the long-term investment infrastructure required for the country’s startup economy. This will expand capital opportunities for domestic entrepreneurs and pave the way for Bangladesh’s startup sector to become stronger, more competitive, and more connected to the global investment system.
