Bangladesh Startup Investment Report Q1 2023

Funding Volume Increased To USD 36.55 Mn In Quarter 1 Of 2023 With An Average Ticket Size Of USD 2.09 Mn

The change in the startup investment landscape between Q4 2022 to Q1 2023 — *Source: LightCastle Analytics, FutureStartup.com, Crunchbase, Startup Bangladesh Limited, Bangladesh Angels Network, Anchorless Bangladesh*

17 Deals Secured by Bangladeshi Startups in Quarter 1 Of 2023 with Ticket Sizes Rising from the Previous Quarter

Month by month deal volume and deal count for startup investments in Bangladesh from Q1 2022 to Q1 2023 — *Source: LightCastle Analytics, FutureStartup.com, Crunchbase, Startup Bangladesh Limited, Bangladesh Angels Network, Anchorless Bangladesh*

Deal volume decreased by 34% from the previous year, and by 55% from the previous quarter (excluding the ShopUp deal in Q’1 2023).
ShopUp accounted for 84% of total funding raised in Q’1, having received USD 30.00 Mn from Lendable and the City Bank.
20 deals were made in Q’1 indicating a rise from both last year (8 deals made in Q’1 2022) and last quarter (12 deals made in Q’4 2022).

“The international community has praised Bangladesh’s economic success over the past ten years. However, rising geoeconomic fragmentation, macroeconomic disruptions, and global inflationary pressures are sending shockwaves through the world’s economies. The demise of Silicon Valley Bank, Silvergate Bank, and Signature Bank, three of the largest U.S. banks that provided financing to tech firms, also placed concern on the availability of capital for entrepreneurs globally. But it’s more crucial than ever to keep in mind that Bangladesh has a vibrant local investment environment that is frequently overlooked. Approaching this investor group might be a wonderful approach for business owners to secure money. Bangladeshi businesses will emerge stronger in the long run if they are clever and quick to adapt to the present investment slowdown.”

Zahedul Amin
Director, Finance, Strategy and Consulting Services,
LightCastle Partners

“In 2023, adaptability is essential. Founders should focus on finding that unique insight to solving a problem while measuring timely market opportunities that are present. Valuations are slashed in an economic downturn. Hence, frugal innovations with a clear path to scalability, lean burn rate, and a solid team showing positive unit economics growth (MoM) is key for resilience, fundraising, and survival. Long-term growth mindset over fast development without continuity should still win.”

Ahmed Jawad Yusuf
Advisory Lead,
Bangladesh Angels Network

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WRITTEN BY: LightCastle Analytics Wing

At LightCastle, we take a data-driven approach to create opportunities for growth and impact. We consult and collaborate with development partners, the public sector, and private organizations to promote inclusive economic growth that positively changes the lives of people at scale. Being a data-driven and transparent organization, we believe in democratizing knowledge and information among the stakeholders of the economy to drive inclusive growth.

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