The government-backed initiative marks a game-changing step towards mobilizing local, international and development capital through professional venture capital fund managers.
Startup Bangladesh Limited (SBL), the flagship venture capital and fund management company of the Government of the People’s Republic of Bangladesh under the ICT Division, today started operational activities of the Bangladesh Fund of Funds, a government-backed initiative designed to mobilize local, international, and development capital into Bangladesh’s startup ecosystem. The initial size of Bangladesh Fund of Funds is BDT 400 Crore. The Fund represents a major shift in how public capital supports innovation in Bangladesh. Instead of investing only in individual startups, the Bangladesh Fund of Funds will channel capital through selected professional venture capital fund managers, enabling broader market participation, stronger investment governance, and greater access to growth capital for promising Bangladeshi startups as stated in the Press Release.
The Government’s 2026 election manifesto placed strong emphasis on startup and entrepreneurship development, particularly as a means of creating jobs, advancing innovation and building a technology-driven economy. In line with that commitment, the Government has allocated BDT 500 crore for startup development in the current fiscal year. A range of tax and VAT incentives, including a zero percent turnover tax, have also been introduced to create a more supportive environment for young entrepreneurs and technology-driven startups. The operational beginning through the Request for Expression of Interest (REOI) was announced at a program held at the ICT Division in Dhaka, attended by senior government officials, representatives of development partners, venture capital and private equity firms, startup founders, investors, and other ecosystem stakeholders.
The program was graced by Mr. Fakir Mahbub Anam MP, Honorable Minister for Ministry of Posts, Telecommunications and Information Technology, as the Chief Guest. Mr. Rehan Asif Asad, Adviser to the Honorable Prime Minister for Posts, Telecommunications and Information Technology, attended as the Special Guest. The program was chaired by Mr. Md. Mamunur Rashid Bhuiyan, Secretary, ICT Division, and Chairman of Startup Bangladesh Limited. Speaking at the event, Mr. Fakir Mahbub Anam MP, Honorable Minister for the Ministry of Posts, Telecommunications and Information Technology said: “The Bangladesh Fund of Funds can become a game-changing platform for our startup ecosystem. It is the most important initiative that we have taken for the country to support our startups. It will help connect promising Bangladeshi entrepreneurs with the capital, expertise, and global networks they need to grow. Through this initiative, we want to build a stronger pathway for innovation-led enterprises to create employment, attract investment, and contribute to Bangladesh’s future economy.”
Mr. Rehan Asif Asad, Adviser to the Honorable Prime Minister for Posts, Telecommunications and Information Technology added: “Bangladesh has no shortage of talented entrepreneurs or innovative ideas. We want to rebuild the nation where good ideas do not stop for lack of capital, where investors can enter the market with confidence and where our most promising startups can grow from Bangladesh to the world. The Fund of Funds is an important step in that journey. It will help bring together public capital, private investment, experienced fund managers, global networks and new market opportunities under one stronger ecosystem.” Presiding over the program, Mr. Md. Mamunur Rashid Bhuiyan, Secretary, ICT Division, and Chairman of Startup Bangladesh Limited, said: “This initiative demonstrates the government’s commitment to creating an enabling environment for venture capital and innovation. Our vision is to build a startup ecosystem that can grow on its own strength, where government creates the foundation, private capital brings scale and global investors bring knowledge, networks and new opportunities.
The Bangladesh Fund of Funds is a step toward that future.” During the program, Mr. Nurul Hai, Managing Director & CEO of Startup Bangladesh Limited, delivered a detailed presentation on the Bangladesh Fund of Funds, outlining its proposed structure, investment approach, fund-manager selection process, co-investment mechanism, and expected contribution to the ecosystem.
He said: “The Bangladesh Fund of Funds is not just about providing capital. It is about building the proper ecosystem that Bangladesh will need for its next generation of startups. We want public capital to unlock much larger pools of private and international investment, strengthen professional fund managers and give high-potential Bangladeshi startups a clearer path to scale. In that sense, the Fund of Funds is not simply another financing program.
It is part of the financial infrastructure we need to build a deeper, stronger and more globally connected startup economy.” Representing the Japan International Cooperation Agency (JICA), Ms. Morikawa Yuko said: “The Fund of Funds will help deepen Bangladesh’s venture capital market by attracting institutional and foreign investment, bringing global VC firms into the ecosystem and expanding access to finance for promising startups.
The Sidecar Facility will complement this by strengthening the startup pipeline, increasing available capital and improving investor capacity.” Over the past decade, Bangladeshi startups have reportedly attracted approximately USD 1.2 billion in investment, while local investors accounted for only around 7 percent of the capital deployed. Through the Bangladesh Fund of Funds, Startup Bangladesh aims to create a powerful multiplier effect: every unit of public capital will be used to attract additional private, institutional, and development capital into the country. The operationalization of the Fund marks an important milestone in Startup Bangladesh’s broader mission to build an inclusive, innovation-driven, and investment-ready Bangladesh.
For more updates, be with Markedium.
Leave a comment