Government programs, strategic partnerships, and a youthful, tech-savvy population are driving Bangladesh’s transformation into a vibrant startup hub attracting global investment.
Ten years ago, startups in Bangladesh were not a big topic. Entrepreneurs had little access to digital technologies and struggled to attract investment.As a result, few investments were made in the startup sector. Foreign investors were also hesitant to trust this new market.In recent years, things have changed quickly. The startup scene in Bangladesh has grown by more than ten times. These startups have created over 1.5 million jobs. What was once small has become a fast-growing, global marketplace.A key reason for this change is Startup Bangladesh Limited. This government-backed program helps ICT entrepreneurs by providing capital and technology. It also helps create policies to support startup growth, and its efforts are gaining global recognition.
Startup Connect Event Brings Local and Global Investors Together in Dhaka
At a recent investment summit in Dhaka, the "Startup Connect" event brought local and global investors together. Entrepreneurs shared their ideas, opening doors for future investments.
One success story is ShopUp, which raised $120 million in funding and launched a joint venture called Silk with a Saudi company. This is a major step, as it is the first time a Bangladeshi company has partnered with a Saudi company, showing Bangladesh’s growing strength in business.
Bangladeshis in Saudi Arabia have usually been seen as low-income workers. This new partnership shows how perceptions are changing, as Bangladesh gains more recognition for its innovation.
Startups like Pathao, Chaldal, iFarmer, and ShareTrip are now working with international investors. Global accelerators like Accelerating Asia have invested in Bangladeshi startups, with more than 20% of their portfolio in Bangladesh, much higher than the 5–6% expected. This shows how Bangladesh’s startup quality is improving and how global investors are now more interested in the country.
This growth is driven by several factors: a young, tech-savvy population, wide mobile phone use, better internet access, and rising demand for digital services.
Over 60% of Bangladesh’s 170 million people are under 38. This group is tech-savvy and ready for innovation, especially in areas like e-commerce, fintech, healthtech, and agritech.
But to fully tap into this potential, the government must create a friendly environment for startups. Policies must support the growth of the sector.
Startup Bangladesh is more than just an investor. It also helps remove obstacles for startups. The organization works with policymakers and public institutions to update old laws and simplify processes. It connects entrepreneurs with the government, ensuring that national priorities align with the needs of startups.
One of its major successes is reducing internet bandwidth costs, which makes the internet more affordable for businesses and consumers. As more people use the internet, startups have a better chance to grow.
Introduction of Share-Swap Facilities and Co-Investment with Global Venture Capital Firms
Another key change was the introduction of share-swap facilities for startups, supported by Bangladesh Bank. This allows startups to make equity deals, helping them merge, acquire others, and form international partnerships—deals that were difficult before. These changes help startups build stronger businesses and attract global partners.
By following global best practices, Startup Bangladesh co-invests with international venture capital firms. This increases investor confidence, as it shows the government is willing to share the risk and support the market.