Market digest

Startup Bangladesh gets Tk 230bn iDEA fund

Staff Correspondent

18 June, 2021 12:00 AM printer

Startup Bangladesh has received Tk 230 million fund from the government’s innovation design and entrepreneurship academic (iDEA) project.

The project aims to support seed and growth stage entrepreneurs through equity investment.

The state-run company is set to fetch another Tk 200 million in the upcoming fiscal year 2021-22, said a news release on Thursday.

 The iDEA Project under the ICT Division has been working since 2016 to create a startup ecosystem in Bangladesh by encouraging new innovative ideas of startups.

iDEA project director Md Abdur Rakib handed over the cheque to Startup Bangladesh Company Secretary Monirul Islam recently at a meeting at ICT Tower in the capital Dhaka.

To provide equity funding to seed and growth level startups, “Startup Bangladesh Limited”, the country's first fully state-owned venture capital company, was formed in March 2020 through the iDEA project.

Through this company, the startups have the opportunity to get investment in the seed stage up to a maximum of Tk 10 million and in the growth stage up to a maximum of Tk 500 million per round sharing a maximum of 49 percent equity.  “There are some 179 startups nominated for Tk 1 million grants each at the pre-seed stage through an expert selection committee of the project,” said iDEA project director Md Abdur Rakib regarding the investment.