Bangladesh Startup Investment Report Q’3 2023: Adapting To Turbulent Realities

LightCastle Analytics Wing
October 16, 2023
Bangladesh Startup Investment Report Q’3 2023: Adapting To Turbulent Realities

In recent times, the global economy has witnessed its fair share of turbulence. In Bangladesh, these global vulnerabilities have not gone unnoticed. The nation faces economic hurdles such as a shortage in foreign exchange reserves, persistent inflationary pressures, and an increasing current account deficit. The volatile political situation has the potential to exacerbate economic uncertainties, making the lead-up to the elections a critical period to watch.

As the economic and political climate evolves, maintaining agility and adaptability is vital. The startup investment landscape in Bangladesh remains influenced by global and local factors, requiring startups and investors to navigate a complex and evolving environment. Adaptation and relationship-building are key to ensuring resilience and growth in this dynamic ecosystem.

Explore the latest trends in Bangladesh’s startup investment landscape for Q’3 2023 in our comprehensive report, ‘Bangladesh Startup Investment Report 2023 Q’3: Adapting To Turbulent Realities’.

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 q3 2023 download button banner If you are interested to learn more about the Startup Ecosystem of Bangladesh Document download full report

Key Findings from the Report

  • Shift In Global Funding: On a global scale, startup funding increased slightly by 7%, reaching USD 73 Bn in Q3 2023. This growth signifies a glimmer of optimism in the broader startup investment landscape despite the challenges faced locally.
  • Steep Funding Drop: In Q’3 2023, startup funding in Bangladesh declined significantly to USD 4.0 Mn, marking a 77% drop compared to Q’3 2022.
  • Consistent Decline: Excluding a notable USD 30 Mn deal for ShopUp, quarterly investments remained consistently below USD 10 Mn, marking a 42% decline from the preceding quarter.
  • Annual Reduction: The overall startup funding across the three quarters amounted to USD 47.5 Mn, signaling a stark 50% reduction compared to the previous year. This decline underscores the impact of the ongoing global funding slowdown.
  • Local Investor Dominance: Local investors accounted for an impressive 84% of total investments in Q’3, participating in all six deals during the quarter.
  • Resilience in Early-Stage Funding: Early-stage funding remained stable, sustaining its momentum. It represented 62% of total investments in Q’3, with no quarter-on-quarter change.

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 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.

For further clarifications, contact here: [email protected]

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