The government has taken steps to gradually expand the fund of Bangladesh Startup Investment Company PLC (BSIC) to Tk 1,000 crore to strengthen the country's venture capital industry and attract greater private and international investment, Post, Telecommunications and ICT Division Minister Faqir Mahbub Anam said today.
Replying to a question from Md Ashraf Uddin MP in parliament, the minister said approximately Tk 109 crore has so far been invested in 36 technology-based and innovative startups that received final approval.
He said a total of 55 startups had been launched through Startup Bangladesh. Of the 55 approved startups, 19 were later rejected at various stages because of inconsistencies identified during due diligence and disagreements over investment conditions.
The startups include Chaldal Limited, 10 Minute School Limited, Sheba Platform Limited, Tour Booking Bangladesh Limited (ShareTrip), iFarmer Limited, Silver Water Technologies Limited (Pickaboo), Intelligent Machines Limited, SWAP BD Limited, Care Nutrition Limited, Truck Lagbe Limited, Steller Digital Limited (Bongo), Pathao Limited, Shikho Technologies Bangladesh Limited and others.
According to the minister, investments made through Startup Bangladesh have enabled portfolio startups to expand their business operations, create more than 7,000 direct jobs and increase revenue and sales by at least five times on average.
He said the portfolio companies had contributed more than Tk 180 crore to the government in tax revenue, equivalent to 1.7 times Startup Bangladesh's total investment.
The minister also said portfolio startups had achieved success in entering international markets, introducing technological innovations and securing subsequent domestic and international investments. Several companies are moving towards profitable and sustainable business models, while 80 percent of Startup Bangladesh's investments have recorded positive growth.
Under Startup Bangladesh's investment policy, the organisation cannot provide direct loans to startups. Instead, its primary role is to support promising technology-based startups through investments in equity and equity-linked instruments, he said.
To address the existing funding gap in the startup sector, the government has already initiated several specialised and mandated funds.
As part of that effort, Startup Bangladesh has recently moved to establish funds worth around Tk 400 crore and a co-investment fund of Tk 300 crore. The initiative aims to expand startup financing through experienced fund managers.
"In the future, initiatives are being taken to gradually increase the size of this fund to Tk 1,000 crore. As a result, the domestic venture capital industry will be further strengthened and private and international investment will be encouraged," the minister said.
