Bangladesh Startup Investment Company has started its journey

Bangladesh Startup Investment Company (BSIC) has started its journey aiming to opening a new horizon of financing for the country's emerging technology-based initiatives or startup sector. This specialized institution, formed by a joint venture of 39 banks of the country with a capital of about Tk600 crore, will officially start its operations on April 30.

Sources said that under the instructions of Bangladesh Bank, the participating banks have added 1 percent of their profits to this fund. Every year, 1 percent of the banks' profits will be added to this fund, as a result of which the size of the fund will increase over time.

The company's board of directors includes the managing directors of the country's top five banks. The first chairman has been elected as the chairman of the Association of Bankers Bangladesh and managing director of City Bank, Masrur Arefin. Research and consulting firm Light Castle Partners is involved as a strategic consultant.

BSIC's main goal is to provide equity-based capital, strategic support and regular supervision to promising new technology-based initiatives. The organization will not only provide financing, but also work to bring joint investments with foreign venture capital for domestic initiatives.

Sources said that the company plans to invest in at least three startups by next June. The goal has been set to provide capital to 8 to 12 more initiatives in the next two years.

Chairman Masrur Arefin said that BSIC will work like a full-fledged service provider for young entrepreneurs. The organization's main goal will be to make the initiatives successful through not only providing capital, but also regular advice and monitoring.