Bangladesh Startup Investment Report Q’2 2023: Navigating Through Adversity

LightCastle Analytics Wing
July 16, 2023
Bangladesh Startup Investment Report Q’2 2023: Navigating Through Adversity

The global economic landscape continues to face macroeconomic shocks and external pressures, impacting economies worldwide, including Bangladesh. As the world grapples with rising inflation, geopolitical tensions, and an energy crisis, the effects on consumption and business operations are evident. These circumstances have had a significant effect on startup funding, resulting in a notable decline in global venture funding in Q’2 2023, which fell 18% quarter-on-quarter to USD 65 Bn.

In the second quarter of 2023, Bangladeshi startups secured USD 6.8 Mn across 10 deals, contributing to a total of USD 43.3 Mn raised in the first half of the year. This growth was primarily driven by small-ticket funding from local investors, highlighting the country’s capacity for fostering entrepreneurial growth. With that said, the upcoming Startup Summit hosted by the ICT Division promises to be a significant catalyst for the ecosystem’s growth.

As 2023 unfolds, the global economy continues to experience turbulence, and startup ecosystems worldwide are facing unprecedented challenges. What funding insights have emerged in Q’2? What can we expect in terms of funding trends for the rest of the year? What do industry insiders think about the ongoing funding slowdown and its implications for Bangladesh’s startup ecosystem?

Explore the latest trends in Bangladesh’s startup investment landscape for Q’2 2023 in our comprehensive report, ‘Bangladesh Startup Investment Report 2023 Q’2: Navigating Through Adversity’. Brought to you by LightCastle Partners, in collaboration with Startup Bangladesh Limited, Anchorless Bangladesh, Bangladesh Angels Network, and BD Startup Founders, this report is part of our ongoing series of quarterly publications on Bangladesh’s startup ecosystem.

bangladesh startup investment report q2 2023 download button banner If you are interested to learn more about the Startup Ecosystem of Bangladesh Document download full report

Some of our key findings from this report include:

  • Global venture funding declined 18% QoQ. The ongoing global macroeconomic shocks and external pressures led to an 18% QoQ decline in global venture funding in Q’2 2023, reaching USD 65 Bn, out of which Asian startups witnessed a 27% drop in funding volume.
  • Bangladeshi startups raised USD 6.8 Mn across 10 deals in Q’2 2023. Startups have raised a total of USD 43.3 Mn in the first half of 2023, a 50% decline of USD 91.3 Mn in H1 2022.
  • The funding landscape witnessed a shift in investor preferences. Local investors funded 60% of all deals made in Q’2, while international funds represented 77% of the total funds raised, amounting to USD 5.2 Mn. 
  • Logistics and mobility sector received the highest funding, securing USD 5.1 Mn in Q’2.  This significant investment highlights the growing demand for innovative transportation solutions in Bangladesh, presenting lucrative opportunities for startups to address transportation woes and optimize logistics operations in the country.

About our partners:

Startup Bangladesh Limited is the flagship venture capital fund of the ICT Division and the first and only venture capital fund sponsored by the government of the People’s Republic of Bangladesh.

Anchorless Bangladesh is a New York-based early-stage venture capital fund dedicated to investing in critical businesses that empower Bangladesh’s socio-economic growth.

Bangladesh Angels Network is the country’s first angel investing platform, founded with a mission to elevate the country’s startup entrepreneurs to the highest level.

BD Startup Founders Group is the leading startup community of Bangladesh that connects the prominent active startup founders and ecosystem builders in the country.

WRITTEN BY: LightCastle Analytics Wing

At LightCastle, we take a systemic and data-driven approach to create opportunities for growth and impact. We are an international management consulting firm which creates systemic and data-driven opportunities for growth and impact in emerging markets. By collaborating with development partners and leveraging the power of the private sector, we strive to boost economies, inspire businesses, and change lives at scale.

For further clarifications, contact here: [email protected]

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