Startup Bangladesh announces $65Mn fund for investment in 50 startups

Startup Bangladesh, a proprietary VC fund declared by the country’s ICT Ministry, has recently announced the launch of its USD 65 million fund for investing in some small- and mid-sized startups across Bangladesh.

Known as ShotoBorshe Shoto Asha, the fund has already, to date, invested in seven startups and is now seeking to back about 50 companies by the end of 2021. The list of seven startups the company has already invested in is are as follows: ride-sharing and logistics firm Pathao; software startup- Intelligent Machines; ecommerce player- Chaldal; mental health firm- Money Bondhu; healthtech startup- Dhaka Cast; domestic services startup- Sheba.xyz; and edtech venture- Eduhive.

As per credible sources, the average ticket size for investment in upcoming 50 companies will be USD 120,000 for seed rounds and USD 600,000 for growth-stage startups. In fact, a company official in a press release mentioned that the new fund allocation would allow the startup enterprises to scale up production, enhance the quality of their offerings, and further develop their marketing strategies and supply chain to score an edge in the transforming business world.

Meanwhile, the state minister of Bangladesh’s ICT division, Zunaid Ahmed Palak MP, believes that startups could play an integral role in addressing the current market needs, thereby serving as the foundation for far-reaching consequences in the country’s overall GDP growth. Moreover, tech solutions offered by these companies could support the nation in its goals of accomplishing the Sustainable Development Goals by 2030.

In addition to this, the company, for its current fund move, is likely to offer investments in the forms of equity, grants to pre-seed, convertible debt, and growth-stage startups via co-investments, as an asset manager, and as a fund-of funds.

About Startup Bangladesh

Established in March 2020, Startup Bangladesh seeks to lend support to the country to create new employment opportunities, develop technical skills for its employed population, and innovate at an unprecedented pace.

Source Credit: https://www.techinasia.com/startup-bangladesh-launches-65m-fund-invest-50-startups-year