Only 8% of startup investment comes from domestic sources.

To encourage new entrepreneurs in the startup sector, Finance Advisor Salehuddin Ahmed has proposed the formation of a Tk 100 crore startup fund in the upcoming 2025–26 national budget. Earlier in April, at an investment summit held in Dhaka, Bangladesh Bank Governor Ahsan H. Mansur announced plans to create a special fund of Tk 800 to 900 crore to support entrepreneurs in this sector. He also mentioned that a directive would be issued soon, although no visible action has yet been taken.

Currently, 92% of total investment in Bangladeshi startups comes from foreign sources. Over the past decade, the sector has attracted over USD 1 billion in investment, equivalent to approximately Tk 12,200 crore (assuming USD 1 = Tk 122). Of this, domestic investment accounts for only Tk 987 crore, according to research by local consultancy firm LightCastle Partners.

Startups in Bangladesh remain heavily dependent on foreign investors. Experts point out that while most investors provide capital, they do not offer much support in terms of experience, guidance, or access to essential resources. As a result, startups are deprived of crucial early-stage support. Despite strong interest from international investors in the country’s startup ecosystem, local investment firms are lagging behind due to structural weaknesses, a lack of investment mindset, and limited expertise. The number of local venture capital (VC) and angel investors is also low. Moreover, many startup founders in Bangladesh lack sufficient guidance on business planning, pitching to investors, and maintaining corporate governance. Consequently, most struggle to attract investment, according to industry insiders.

When asked about the issue, Mamun Rashid, Chairman of Financial Excellence Limited and BD Venture Limited, said that many talented and motivated young individuals are now entering Bangladesh’s startup ecosystem. Their strengths lie in innovation, technological skills, and the country’s growing market potential. Global venture capital and private equity firms are investing in them. However, these entrepreneurs often face challenges in accessing working capital locally and hiring skilled personnel. In this context, policymakers and the central bank need to step in. If necessary, policy reforms should be considered.