Startup slowdown
Funding has fallen, deals have slowed, and some of the country’s best-known startups are struggling to survive
Startup funding
- 2021: $434m raised with 94 deals
- 2024: $42m came with 41 deals
- 2025: $124m raised with 12 deals ($110m from one deal)
- Total funding over last decade: $1.12b
- Local investor contribution: $76m (6.8% of total)
- Startup investment as share of GDP: 0.03%
Why funding fell
For all latest news, follow The Daily Star's Google News channel. - Global startup funding fell sharply after 2022
- Higher interest rates, capital costs
- Political instability at home
- Taka depreciation
- Difficult for local firms to list on major stock exchanges
- Global investors now focused on AI ventures
- Bangladesh lacks infrastructure to attract AI-focused funding
Bangladesh Startup Investment Company
- Initial capital: Tk 600 crore
- Launch date: April 30, 2026
- Planned first investments: at least three startups by June 30
What went wrong inside startups
- Rushed expansions before becoming stable
- Many relied heavily on overseas venture capital
- Few alternatives to foreign funding
- Limited institutional lending or local investment
SLOWDOWN IMPACT
- Fewer startup launches
- Companies cutting staff to reduce costs
- Startups may avoid new sectors or products
Sources: LightCastle Partners, govt data
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