Bangladesh Startup Funding Plummets to $42M in 2024 as Local Investment Stalls at 6.8%

Startup funding in Bangladesh experienced a sharp decline in 2024, following a global trend of reduced venture capital flows. The domestic startup ecosystem faces challenges from higher interest rates, increased capital costs, and a global investor shift towards artificial intelligence ventures, often bypassing markets like Bangladesh.

Bangladeshi startups raised $42 million across 41 deals in 2024. This figure represents a considerable drop from the $434 million secured through 94 deals in 2021. Over the past decade, local investors contributed only $76 million, making up 6.8% of the total startup funding. This highlights a persistent reliance on overseas capital.

The funding slowdown has led to fewer new startup launches and cost-cutting measures, including staff reductions. This environment limits expansion into new sectors and product development. In response, the Bangladesh Startup Investment Company aims to bolster local funding.

With an initial capital of Tk 600 crore, equivalent to approximately $51.3 million, the company plans to launch on April 30, 2026. Its objective includes investing in at least three startups by June 30, 2026. The success of this initiative will be crucial to watch as Bangladesh seeks to cultivate a more resilient domestic startup ecosystem.