Bangladesh’s first institutionally governed venture capital platform, Bangladesh Startup Investment Company PLC (BSIC), officially launched on Tuesday with around Tk425 crore ($35 million) in committed capital to finance early-stage startups and increase domestic participation in the country’s growing startup ecosystem.
The platform, backed by 39 commercial banks, unveiled its inaugural investment vehicle, Onkur Bangladesh Fund 1, at a launch event in Dhaka.
The fund will invest in seed, late-seed and Series A-stage startups, targeting technology-enabled enterprises as Bangladesh seeks to reduce dependence on foreign capital in the startup sector.
According to BSIC, shareholder banks will contribute annually an amount equivalent to 1 percent of their net profits, creating a recurring capital replenishment mechanism rather than a one-time fund structure.
Finance and Planning Minister Amir Khosru Mahmud Chowdhury said Bangladesh’s next phase of economic growth would increasingly depend on productivity, technology, entrepreneurship and private-sector innovation.
He said BSIC reflects growing confidence in local entrepreneurs and the ability of domestic financial institutions to build nationally and globally competitive companies.
Bangladesh Bank Governor Md Mostaqur Rahman said the country’s financial sector needs institutions capable of supporting innovation while maintaining transparency and accountability.
He said BSIC would help mobilise domestic capital for productive enterprises that can contribute to employment, productivity and financial inclusion.
BSIC Chairman and City Bank Managing Director Mashrur Arefin said the platform was designed to connect local entrepreneurial ambitions with professionally managed capital.
“With the support of 39 commercial banks, we are creating a bridge between local trust and global venture standards,” he said.
Public deal data cited at the event showed Bangladesh’s startup ecosystem has raised more than $1 billion through over 450 disclosed transactions since 2010, though less than 7 percent of the funding originated from domestic sources.
BSIC said the initiative emerged from a policy framework developed by Bangladesh Bank, which allowed commercial banks to allocate part of their net profits to the platform under a prudential structure set by the central bank.
At the event, BSIC announced the appointment of Sami Ahmad, senior adviser at B Capital, as adviser to the BSIC board.
Representatives from international investment firms including 500 Global, Plug and Play, ADB Ventures and Sturgeon Capital attended the launch.
BSIC said it expects 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.
