The Bangladesh Small and Cottage Industries Corporation (BSIC) has launched a dedicated startup financing initiative through a USD 35 million venture capital fund, backed by 39 local banks, to improve access to capital for emerging entrepreneurs and small-scale industrial ventures.

The initiative addresses a critical constraint faced by startups and cottage industries in Bangladesh, limited access to formal and risk-tolerant financing. By introducing an equity-based investment mechanism alongside traditional lending structures, the fund aims to support high-potential enterprises in establishing operations, scaling production, and integrating into formal industrial value chains.

Structured under the “Onkur” platform, the fund will focus on early-stage startups and SMEs across priority sectors, enabling them to overcome financing gaps that typically limit growth. The participation of a broad consortium of banks reflects increasing institutional interest in venture financing and signals a shift toward more diversified financial instruments within Bangladesh’s investment ecosystem.

Beyond capital access, the startup financing in Bangladesh is expected to contribute to employment generation, promote grassroots industrialization, and strengthen the country’s SME landscape. It also represents a move toward building a more structured pipeline for innovation-driven enterprises, particularly those with scalable and technology-enabled business models.

BSIC’s startup financing initiative aligns with broader national priorities to foster entrepreneurship, encourage industrial diversification, and enhance inclusive economic growth. As Bangladesh continues to strengthen its industrial base, initiatives such as this highlight the growing emphasis on nurturing early-stage enterprises and building a more resilient, innovation-led economic landscape.

Source: ExitStack