Bangladesh launches US$33M fund-of-funds to deepen startup capital pool
Startup Bangladesh, the government-backed venture capital and fund management company under the ICT Division, has begun operational activities for the Bangladesh Fund of Funds, a new initiative designed to channel state capital through professional venture capital fund managers rather than only making direct investments into startups. The fund has an initial size of BDT 400 […] The post…
The Bangladesh Fund of Funds, a US$33 million initiative launched by Startup Bangladesh, aims to deepen the pool of capital available for startups in the country. The new structure, which channels state capital through professional venture capital fund managers, differs from direct investments in startups. The fund seeks to improve investment discipline, create more professional fund managers, and attract additional private and institutional capital.
Bangladesh has allocated BDT 500 crore (approximately US$41 million) for startup development this fiscal year and introduced tax incentives to support young companies. However, local investors have only contributed about 7 percent of the capital deployed in Bangladeshi startups over the past decade. The government's focus on startups as part of its economic development agenda is reflected in its 2026 election manifesto, which emphasizes job creation, innovation, and the development of a technology-led economy.
The fund-of-funds model is already present in more mature markets, such as Singapore, where public capital is used to crowd in private investors and support emerging fund managers. In Bangladesh, the challenge lies in adapting this model to a developing market, where fund management capacity, exit pathways, and institutional investor participation are still emerging.
Written by urgent.news from e27's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
