Bangladesh on Tuesday launched its first institutionally governed venture capital platform with around Tk425 crore in committed capital, as policymakers seek to channel domestic bank funding into startups and reduce dependence on foreign investors in the country’s technology sector.
Bangladesh Startup Investment Company PLC (BSIC), backed by 39 commercial banks, unveiled its first investment vehicle — Onkur Bangladesh Fund 1 — which will finance seed, late-seed and Series A-stage startups.
The launch marks a shift in Bangladesh’s startup financing model, where more than $1 billion has been raised through over 450 disclosed deals since 2010, but less than 7 per cent originated from domestic sources.
Under the structure approved by Bangladesh Bank, participating banks will contribute annually an amount equivalent to 1 per cent of net profits, creating a recurring capital pool instead of a one-off fund.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury said Bangladesh’s future growth would increasingly depend on technology, entrepreneurship and private-sector innovation rather than conventional expansion models.
The minister acknowledged stress in the banking sector and weak investment momentum, describing the current phase as painful after years of domestic and global shocks.
According to Amir Khosru, the government is working with JPMorgan, the World Bank and International Finance Corporation (IFC) to address structural weaknesses in the banking sector and broader economy, while ensuring no political interference in financial institutions.
He said the venture capital initiative aligns with BNP’s “creative economy” strategy, which aims to generate employment and expand economic activity beyond major urban centres.
The government is also preparing broader capital market reforms and tighter regulations to restore confidence in the financial system, he added.
Bangladesh Bank Governor Md Mostaqur Rahman said institutions capable of financing innovation while maintaining transparency and accountability are critical for the next phase of financial sector development.
According to the governor, BSIC would help mobilise domestic capital into productive and technology-driven enterprises supporting employment, productivity and financial inclusion.
He also said proprietary QR code systems used by banks and financial institutions would be phased out by 30 June in favour of interoperable QR codes as part of efforts to build a more integrated digital financial ecosystem.
BSIC Chairman and City Bank Managing Director Mashrur Arefin said the platform was designed to connect local entrepreneurial ambitions with professionally managed institutional capital.
Representatives from international investment firms including 500 Global, Plug and Play, ADB Ventures and Sturgeon Capital attended the launch event.
BSIC said it plans to complete its first three investments before the end of 2026 after appointing a managing director, chief investment officer and investment committee later this year.
