Venture capital firm BSIC launched, 39 banks share ownership
Thirty-nine of Bangladesh’s commercial banks have collectively launched the country’s first institutionally governed venture capital platform, marking the most significant attempt to date to mobilize domestic financial capital behind a startup economy that has historically depended on foreign investors.
The participating banks will contribute 1 percent of their annual net profits, ensuring a continuous capital structure rather than a one-time fund.
Bangladesh Startup Investment Company PLC, known as BSIC, debuted its inaugural fund ”Onkur Bangladesh Fund 1” at a launch ceremony at a city hotel on Tuesday attended by Finance and Planning Minister Amir Khosru Mahmud Chowdhury and Bangladesh Bank Governor Md Mostaqur Rahman.
The platform launches with approximately Tk 425 crore (US$35 million) in committed capital and is designed to grow each year as shareholder banks contribute one percent of their annual net profits a structure that gives BSIC a recurring, formula-based replenishment mechanism rather than a one-time corpus.
The platform is the product of a sustained policy effort by Bangladesh Bank, which authorized commercial banks to allocate a portion of their net profits into the vehicle and shaped the prudential framework under which BSIC will operate.
‘Bangladesh’s next phase of financial development will require institutions that can support innovation while maintaining discipline, transparency and accountability,’ Governor Rahman said in remarks delivered as special guest. ‘BSIC represents an important step in mobilizing domestic capital for productive, technology-enabled enterprises that can contribute to employment, productivity and financial inclusion.’
Bangladesh’s startup sector has raised more than US$1 billion across over 450 disclosed transactions since 2010, according to public deal data, but less than 7 percent of that capital has originated domestically.
‘BSIC is not simply a fund,’ said Mashrur Arefin, BSIC’s chairman and managing director of City Bank PLC. ‘It is an institutional platform designed to connect Bangladesh’s entrepreneurial ambition with disciplined, professionally managed capital.
With the support of 39 commercial banks, we are creating a bridge between local trust and global venture standards one that can help Bangladeshi startups scale with stronger governance, better access to finance and credible co-investment partnerships.’
Speaking as chief guest, Finance Minister Amir Khosru Mahmud Chowdhury said, ‘Bangladesh is entering a new phase of economic transformation, where future growth must increasingly come from productivity, technology, entrepreneurship and private sector innovation.
BSIC reflects confidence in our young entrepreneurs and in the ability of domestic institutions to help build the next generation of nationally and globally competitive companies.’
Separately, BSIC announced the appointment of Sami Ahmad, a global venture capital veteran, senior advisor at B Capital and previously a general partner at the firm, as an advisor to the BSIC board.
The launch was also attended by senior representatives from an international investor delegation, including VentureSouq, Wave maker Partners, 500 Global, Plug and Play, ADB Ventures, GFR Fund, Sturgeon Capital, Conjunction Capital and Orbit Startups, alongside regional technology media outlets Tech in Asia and FWD start.
BSIC said its first three investments would be completed before the end of 2026, following the appointment of a managing director and chief investment officer in the third quarter and the constitution of the full investment committee.
