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This news was originally published in ExitStack.
Bangladesh’s venture capital ecosystem has established its first institutionally structured fund on 12 May 2026 with the launch of ONKUR — Bangladesh Fund I, a USD 35 million venture capital fund operated under Bangladesh Startup Investment Company (BSIC) PLC and capitalised by 39 commercial banks.
At the launch event, LightCastle Partners organized a high-level panel discussion titled “Catalyzing Institutional Capital for Bangladesh’s Next Growth Wave,” moderated by Bijon Islam, CEO of LightCastle Partners. The session examined how institutional finance can accelerate Bangladesh’s innovation economy and build sustainable venture financing infrastructure.
The panel featured Tammer Qaddumi, Co-Founder and General Partner at VentureSouq; Shiv Choudhury, Founding Partner at Wavemaker Growth; Shahir Chowdhury, Founder & CEO of Shikho; Syed Mahbubur Rahman, Managing Director & CEO of Mutual Trust Bank PLC; Mohammad Ali, Managing Director & CEO of Pubali Bank PLC; Tanveer Ali, Board Director of Startup Bangladesh Limited; and Husne Ara Shikha, Executive Director of Bangladesh Bank.
Bridging Bangladesh’s Institutional Capital Gap
The discussion explored the structural barriers that have historically constrained institutional venture capital participation in Bangladesh and examined the ecosystem shifts needed to attract sustainable growth-stage investment into the market.
During the session, panelists highlighted that Bangladesh has already demonstrated strong entrepreneurial potential through the emergence of companies such as bKash, ShopUp, Pathao, and Shikho. However, despite the ecosystem’s growth over the past decade, domestic institutional participation in venture financing has remained limited.
Speaking during the discussion, Bijon Islam emphasized the importance of building a stronger capital continuum for Bangladesh’s startups. According to LightCastle Partners’ Bangladesh Startup Investment Report 2025, nearly 93% of capital invested in Bangladeshi startups over the past decade originated from foreign investors. As noted during the session: “BSIC channels capital from commercial banks into Series A investments at scale whilst attracting additional institutional capital. This creates operational momentum for the ecosystem.”
Governance, Transparency, and Long-Term Alignment
A central theme was the operational complexity of managing a venture capital platform backed by 39 banking institutions with distinct governance cultures, investment expectations, and risk tolerances. The discussion emphasised three critical requirements for long-term success: professional fund management with clear investment autonomy, transparent reporting and accountability structures, and venture-appropriate investment instruments such as equity, convertibles, and co-investment models rather than traditional banking frameworks.
Building Global Investor Confidence in Bangladesh
Global venture capital participants noted that Bangladesh’s startup ecosystem demonstrates market potential, but attracting substantial regional and international capital requires credible institutional infrastructure, established exit pathways, capital market reform and liquidity mechanisms, and scalable investment structures that transition Bangladesh from opportunistic to deliberate venture markets. Local institutional participation through BSIC strengthens international investor confidence and facilitates co-investment activity in Bangladesh-based companies.
Founder Readiness and Scaling Challenges
From the founder perspective, the panel explored the challenges Bangladeshi startups face in becoming institutionally ready for follow-on investment rounds. Key requirements include governance discipline and transparent financial reporting, scalable operational structures, long-term strategic planning, and financial management maturity. Access to capital remains critical, but building institutionally mature companies capable of sustaining growth and attracting global investors is equally essential for ecosystem development.
A New Phase for Bangladesh’s Venture Ecosystem
The launch of ONKUR represents the first instance of Bangladesh’s banking sector collectively mobilising capital into a professionally governed venture capital platform at this scale. Established under Bangladesh Bank directive, ONKUR addresses a structural gap in the ecosystem: the shortage of domestic institutional capital for growth-stage startups. BSIC operates as a long-term investment vehicle, channelling institutional capital into scalable startups across fintech, agritech, and healthtech sectors, whilst enabling co-investment opportunities with regional and global venture capital firms.
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