The government has launched Tk400 “Bangladesh Fund of Funds” with a firm commitment that investment decisions will be strictly merit-based and free from political influence.
Rehan Asif Asad, the prime minister’s adviser on posts, telecommunications and information technology, said on Sunday that no startup would receive investment based on political affiliation or political considerations.
He further claimed that there have been no instances of politically motivated funding in the sector over the last six months.
Speaking at an event organised by the Information and Communication Technology (ICT) Division in Dhaka, Asad said while Bangladesh has no shortage of talented entrepreneurs or innovative ideas, many initiatives fail due to a lack of capital.
He added that the Fund of Funds would enable investors to invest with greater confidence, allowing promising startups to scale and access the international market.
Minister for Posts, Telecommunications and Information Technology, Faqir Mahbub Anam, said the initiative was designed to further strengthen the country’s startup ecosystem. He added that, with government support and patronage, the aim is to develop Bangladesh into one of the premier startup hubs in South Asia.
“The Bangladesh Fund of Funds is a significant vehicle for bringing a major transformation to our startup ecosystem,” Anam said.
“Through this, promising entrepreneurs will have the opportunity to connect with necessary capital, experience, and international networks,” he added.
He explained that a key goal of using public funds as “catalytic capital” is to attract further funding from domestic and foreign private investments, financial institutions, development partners, and international funds.
Chairman of Startup Bangladesh Limited Mamunur Rashid Bhuiyan expressed hope that a stronger investment infrastructure would be established in the country if the Fund of Funds is properly implemented.
He added that the government’s goal is to create an environment where venture capital and innovation can flourish in the mainstream.
During the event, SBL Managing Director and Chief Executive Officer Nurul Hai delivered a presentation detailing the fund’s structure, investment strategy, fund manager selection process, and potential co-investment frameworks.
He highlighted that the government intends to attract more private and international investment, develop skilled and professional fund managers, and pave the way for promising startups to scale.
Yuko Morikawa, the representative of Japan International Cooperation Agency (JICA), said the fund could help strengthen Bangladesh’s venture capital sector. This, she added, would boost domestic institutional and foreign investments, foster new investable startups, and enhance investor capacity.
According to data from Startup Bangladesh, approximately $1.2 billion has been invested in the country’s startup sector over the past decade, though only a tiny fraction of this came from local investors. The Fund of Funds aims to leverage every government taka to attract additional private, institutional, and development investments.
At the same event, Minister Faqir Mahbub Anam also announced that the government would soon hold meetings with social media and technology platforms, including Meta and Google, to curb the spread of false propaganda and misleading content targeting the government.
