A venture capital platform backed by 39 commercial banks has launched with a committed capital of Tk 425 crore ($35 million).

The participating banks will contribute 1 percent of their annual net profits, ensuring a continuous capital structure rather than a one-time fund, said the platform, Bangladesh Startup Investment Company (BSIC) PLC, while formally inaugurating its first fund, "Onkur Bangladesh Fund 1," today.

The fund targets startups at three distinct phases, including seed, where initial capital supports product development and market research; late-seed, which bridges the gap to larger funding rounds by refining the business model; and Series A, which scales proven concepts.

“We are creating a bridge between local confidence and global venture standards,” said BSIC Chairman Mashrur Arefin at the launching ceremony at the Radisson Blu Water Garden Hotel in Dhaka.

“Through this, Bangladeshi startups will gain opportunities for stronger governance, improved financing, and credible foreign-investment-led partnerships,” said Arefin, who is also the managing director of City Bank.

At the event, Finance Minister Amir Khosru Mahmud Chowdhury said the financial sector is currently going through a "painful" phase.

"Everyone knows what happened in the banking sector and stock market in the past. We are working to overcome those challenges," he said.

Bangladesh Bank Governor Md Mostaqur Rahman said the next phase of Bangladesh's financial development requires institutions that can support innovation while maintaining discipline, transparency, and accountability.

He urged that the benefits of the investments reach marginalised communities.

"If marginalised communities remain outside this process, a large segment will remain deprived," he said.