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On April 6, 2025, the “Unlocking Growth Through Scaling Impact and Climate Innovation” Panel at Bangladesh Startup Connect 2025 brought together a powerful lineup of thought leaders, investors, and startup founders to unpack the future of impact investing and inclusive economic growth in Bangladesh.
The panel was preceded by a keynote speech by Maxime Cheng, Insights & Innovations Lead at Roots of Impact, setting the tone for a discussion centered on climate innovation, impact-linked finance, catalytic capital, and how Bangladesh can build a robust and scalable impact investment ecosystem. Moderated by Bijon Islam, CEO of LightCastle Partners, the panelists included:
Maxime Cheng opened with a strong message: Impact is a form of value—and it’s time to make it visible. She highlighted the pressing need to move beyond traditional development aid and design financial instruments that reward startups for deepening their impact. Maxime emphasized that scalable, inclusive growth requires smarter capital deployment—capital that works not just harder, but smarter.
Maxime illustrated how climate vulnerability, estimated to cost Bangladesh USD 11.3 Bn in GDP losses, isn’t just a development concern ,it’s an economic imperative. She urged stakeholders to integrate impact measurement and management (IMM) into investment decisions without overburdening startups. By embedding impact metrics into common financial terms like milestone-based payouts, revenue-sharing agreements, or equity clawbacks, investors can align incentives with impact goals without sacrificing returns. Her message was clear: impact investing can be simple, scalable, and profitable, if approached with the right tools and mindset.
Corinne Henchoz Pignani, Deputy Head of Mission at the Embassy of Switzerland in Bangladesh, reflected on Switzerland’s long-standing development partnership with Bangladesh and their strategic support for the local impact ecosystem over the past five years. Through the Biniyog Briddhi (B-Briddhi) programme, Switzerland has focused on capacity building, convening ecosystem actors, and advancing frameworks for impact measurement. She stressed that while significant progress has been made in creating a pipeline of impact-ready enterprises, catalytic finance, the risk-tolerant capital that can unlock further private investment, remains underdeveloped.
Corinne also highlighted persistent regulatory challenges, especially related to capital flows and foreign exchange restrictions, which discourage international investment. She advocated for a dedicated impact investing regulatory framework, complete with incentives for social enterprises and consistent IMM standards. She concluded by emphasising the importance of learning from peers in the region, pointing to India and Indonesia as successful models for impact investing ecosystems.
Drawing from New Energy Nexus’s global footprint, Stanley Nguyen emphasized that capital and clients are the two key drivers for scaling climate tech startups. He highlighted the opportunity to integrate startups into Bangladesh’s high-growth sectors like textiles and agritech, and called for blended finance models involving government, private sector, and development actors. He underscored the role of public-private partnerships, particularly government-funded programs that cover pilot project costs and crowd in private capital. Stanley also pointed to workforce development and technical training as foundational components of ecosystem development—calling for more robust collaboration among government, startups, corporates, and international players to unlock climate solutions at scale in Bangladesh.
From Sturgeon Capital’s experience, Waiz brought the perspective of an active investor in emerging markets. He acknowledged the enormous market potential in Bangladesh but noted that capital repatriation concerns and ease-of-doing-business challenges often deter global investors. Waiz emphasized the importance of de-risking high-potential startups by supporting them with capacity building, streamlined regulations, and impact-readiness tools. He suggested that showcasing 25–50 well-positioned, impact-aligned startups with growth potential could significantly increase investor interest and competition.
He shared personal insights as both a founder and an investor, noting that complex bureaucratic processes—such as FDI reporting and tax structures, often penalize compliant actors and disincentivize early-stage growth. Waiz emphasized that by simplifying processes and building a clearer investment pathway, the ecosystem can reduce perceived risks and create the kind of “FOMO” that drives capital inflows into other emerging markets.
Sebastian, founder of SOLshare, challenged the perception that Bangladesh lacks scalable climate innovation. Citing the country’s successful Solar Home System program, which deployed over 5 million systems and attracted half a billion dollars in investment, Sebastian argued that Bangladesh has already proven it can lead in decentralized energy. He gave concrete examples from Bangladesh’s early success in distributed solar to highlight how smart asset financing and IoT-enabled impact tracking could be the next frontier. He advocated for revenue-linked financing models that adjust with market volatility—especially relevant for climate-vulnerable regions.
Zong xi Sia, Investment Director, Cocoon Capital, highlighted that while impact is valuable, profitability and business fundamentals remain paramount. From an early-stage investor’s lens, he advised startups to treat impact as a “sweetener” rather than the core pitch. Investors need to see strong unit economics, customer traction, and scalable models, impact alone isn’t enough to justify funding.
Speaking from Cocoon Capital’s perspective, Zong reminded startups that a solid business model must come first. While impact is a plus, long-term sustainability hinges on profitability. He encouraged founders to frame impact as a value-add, not a crutch, and to tailor pitches to commercial and impact investors alike.
Jonathan from IIX shared case studies of impact-linked funds that use tools like first-loss guarantees to attract private capital into high-risk markets. He shared the example of the Women’s Livelihood Bond, which used first-loss guarantees from development partners to attract institutional capital to underserved markets. These guarantees allow funds to absorb potential losses,making investments more palatable to traditional investors and opening the door to risk-averse capital.He explained how such instruments not only de-risk investments for LPs, but also allow startups to offer more competitive pricing and generate diversified revenue through mechanisms like carbon credits.
Key Outcomes:
The Impact Panel at Startup Connect 2025 underscored a powerful message: Bangladesh’s path to inclusive growth lies in rethinking how capital is deployed, measured, and scaled. With stronger regulatory frameworks, catalytic funding, and a growing cohort of investable startups, the country is well-positioned to lead in impact-driven innovation. As echoed throughout the panel, now is the time to move from pilots to scale, from intention to alignment, and to make impact investing the norm, not the exception.
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