Key Takeaways
- • Bangladesh's startup ecosystem faces a shortage of patient domestic risk capital, with institutional venture capital remaining limited and bank lending tied to collateral, according to an opinion piece by consumer brand founder Nomrota Sarker published in The Daily Star.
- • LightCastle data cited in the article show startups raised roughly $1 billion through more than 450 deals between 2010 and 2025.
- • Funding concentration is severe: LightCastle recorded $124 million across just 12 startup deals in 2025, and the $110 million ShopUp–Sary transaction, which formed SILQ Group, accounted for about 89% of that total.
- • Bangladesh Bank's BDT 500 crore startup refinancing fund, established in 2021 and expanded under 2025 rules, has yet to prove its effectiveness, with implementation the key determinant of access.
- • The author argues the 'missing middle' of revenue-generating businesses between seed-stage startups and large companies represents the greatest unrealised opportunity, and calls on institutional investors to consider measured allocations to innovation funds.
Summary
Writing in The Daily Star on 27 October 2026, Nomrota Sarker argues that Bangladesh has never lacked entrepreneurs but has lacked patient capital. Despite a decade of celebration around the country's 'startup era', institutional venture capital remains limited, angel investing is fragmented, and bank lending is tied to collateral. Much domestic capital continues to flow into real estate, textiles, trading, and fixed-income assets.
The article notes that international investors backed companies including Pathao, ShopUp, Chaldal, Truck Lagbe, Maya, and Sheba.xyz, and that the government entered venture investing through Startup Bangladesh Limited. Funding strengthened between 2018 and 2022 before rising interest rates and tighter global liquidity made foreign investors more selective, exposing a shortage of domestic risk capital. The author describes a financing ladder missing several rungs between grants, angel networks and institutional investors.
On the banking side, the article acknowledges that commercial banks protect capital by design, while venture investors assess market capture and scalability. Bangladesh Bank established a BDT 500 crore startup refinancing fund in 2021, and revised rules in 2025 expanded financing limits, retained concessional lending and opened routes for equity investment. The author stresses that implementation will determine outcomes, and that public money alone cannot build a venture ecosystem.
The piece identifies institutional allocation as a gap. Bangladesh has pension funds, insurers, banks and large corporate balance sheets, yet allocations to venture capital and alternative investments remain limited, leaving founders dependent on overseas investors. The author highlights businesses between seed-stage and billion-dollar scale as the 'missing middle', which are too risky for conventional lenders and too large for angels.
LightCastle data cited in the article show roughly $1 billion raised through more than 450 deals between 2010 and 2025. In 2025, funding totalled $124 million across 12 deals, with the $110 million ShopUp–Sary transaction forming SILQ Group accounting for about 89%. The author concludes that policymakers should improve regulatory certainty, tax treatment, cross-border investment rules and governance; commercial banks should develop specialist lending expertise; non-bank institutions could explore venture debt and revenue-based financing; and institutional investors could consider measured allocations subject to their mandates. The views expressed are the author's own and may not reflect The Daily Star's editorial stance.
The article notes that international investors backed companies including Pathao, ShopUp, Chaldal, Truck Lagbe, Maya, and Sheba.xyz, and that the government entered venture investing through Startup Bangladesh Limited. Funding strengthened between 2018 and 2022 before rising interest rates and tighter global liquidity made foreign investors more selective, exposing a shortage of domestic risk capital. The author describes a financing ladder missing several rungs between grants, angel networks and institutional investors.
On the banking side, the article acknowledges that commercial banks protect capital by design, while venture investors assess market capture and scalability. Bangladesh Bank established a BDT 500 crore startup refinancing fund in 2021, and revised rules in 2025 expanded financing limits, retained concessional lending and opened routes for equity investment. The author stresses that implementation will determine outcomes, and that public money alone cannot build a venture ecosystem.
The piece identifies institutional allocation as a gap. Bangladesh has pension funds, insurers, banks and large corporate balance sheets, yet allocations to venture capital and alternative investments remain limited, leaving founders dependent on overseas investors. The author highlights businesses between seed-stage and billion-dollar scale as the 'missing middle', which are too risky for conventional lenders and too large for angels.
LightCastle data cited in the article show roughly $1 billion raised through more than 450 deals between 2010 and 2025. In 2025, funding totalled $124 million across 12 deals, with the $110 million ShopUp–Sary transaction forming SILQ Group accounting for about 89%. The author concludes that policymakers should improve regulatory certainty, tax treatment, cross-border investment rules and governance; commercial banks should develop specialist lending expertise; non-bank institutions could explore venture debt and revenue-based financing; and institutional investors could consider measured allocations subject to their mandates. The views expressed are the author's own and may not reflect The Daily Star's editorial stance.
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