Bangladesh is set to launch its first large-scale venture capital firm this month, marking a major step toward strengthening the country’s startup ecosystem and addressing its long-standing funding gap.
The new entity, named Bangladesh Startup Investment Company (BSIC), has raised nearly Tk 600 crore in initial capital with backing from 39 banks. The firm is scheduled to begin operations on April 30 and aims to invest in at least three startups by June 30.
First Large-Scale Equity-Based Startup Fund
Guided by the Bangladesh Bank, BSIC will operate as an equity-based investment platform, providing funding, strategic support, and opportunities for international co-investment for high-potential startups.
Unlike traditional bank financing, the firm will take ownership stakes in startups instead of charging interest, focusing on long-term value creation.
Mashrur Arefin, Chairman of BSIC and Managing Director of City Bank PLC., said the initiative will act as a full-service institution for entrepreneurs.
“BSIC will not only provide funding but also continuous monitoring and strategic guidance. If even a few startups succeed globally, it will create significant economic and employment impact,” he said.
Focus on Scalable Startups
The firm will initially focus on sectors including healthcare, agriculture, education, transport, retail, and logistics. Startups will be selected based on market demand, operational readiness, and growth potential rather than early-stage ideas.
Officials said BSIC will prioritize ventures that have already demonstrated traction and scalability potential.
Investment Roadmap and Exit Strategy
Between 2027 and 2028, BSIC plans to invest in 8 to 12 startups. From 2029 onward, it aims to exit successful investments through stock market listings or stake sales.
The long-term vision is to build globally competitive Bangladeshi startups capable of scaling internationally and generating large-scale employment, similar to global tech platforms such as Uber, Instagram, Facebook, Spotify, and Airbnb.
Bank-Led Funding Model
The fund has been structured through contributions from participating banks, with 1% of their profits (2020–2024) allocated to build the initial capital pool.
Major contributors include BRAC Bank PLC, City Bank PLC, Dutch-Bangla Bank PLC, Pubali Bank PLC, Sonali Bank PLC, Eastern Bank PLC, and Prime Bank PLC.
Banks are expected to contribute around Tk 200 crore annually going forward, enabling BSIC to expand its investment portfolio over time.
Governance and Leadership
The BSIC board includes managing directors from leading banks along with independent directors. Strategic advisory support is being provided by Light Castle Partners.
Nazeem A Choudhury, Additional Managing Director of Prime Bank, is serving as interim CEO while the organization searches for a permanent chief executive with global venture capital experience.
BSIC was officially registered with the Registrar of Joint Stock Companies and Firms on December 7 last year.
Strategic Push for Startup Ecosystem
Industry leaders believe the initiative could reshape Bangladesh’s startup landscape by introducing structured venture capital support, improving investor confidence, and unlocking new growth opportunities in digital innovation, healthcare, education technology, and rural development.
If successful, BSIC could become a key driver in transforming Bangladesh into a competitive regional startup hub.
