Bangladesh Startup Investment Report Q’1 2024: Weathering Economic Headwinds

The global decline in startup funding during Q’1 2024 affected Asian economies significantly, with Singapore and China experiencing a nearly 70% drop in investment. These trends have also been reflected in Bangladesh, with only 4 deals taking place in Q’1 2024, amounting to USD 7 Mn. 

Investment patterns in recent quarters indicate a risk-averse approach among investors. Notably, late-stage funding dominated Q’1 2024, making up 75% of total investments, underscoring a preference for the stability associated with established ventures.

Interestingly, the nation’s sovereign-backed Venture Capital (VC) firm, Startup Bangladesh Limited (SBL) has consistently been the top local investor over the past four quarters, thus underscoring the importance of local investor activity. However, 97% of total funding raised in Q’1 came from global investors, underlying their importance among the ecosystem. 

While Financial Services has historically secured the largest share of investments, e-Commerce & Retail has emerged as the leading sector in Q’1 2024. PriyoShop’s USD 5 Mn Pre-Series A round and Apon Wellbeings’ USD 1.5 Mn Pre-Seed round were among the notable deals driving this trend.

Explore the latest trends in Bangladesh’s startup investment landscape for Q’1 2024 in our comprehensive report, “Bangladesh Startup Investment Report 2024, Q’1: Weathering Economic Headwinds”. Brought to you by LightCastle Partners, in collaboration with Startup Bangladesh Limited, Anchorless Bangladesh, ExitStack, and BD Startup Founders, this report is part of our ongoing series of quarterly publications on Bangladesh’s startup ecosystem.

Key Findings from the Report:

• Global startup funding in Q’1 2024 reached USD 44 Bn, marking a 26% decline from the previous quarter.
• Bangladeshi startups raised USD 7 Mn across 4 deals in Q’1 2024. 
• Venture Capital (VC) firms were the sole investors this quarter, accounting for 100% of investments.
• Global investors remained the primary investment source accounting for 97% of the total funding.
• e-Commerce & Retail emerged as a standout sector, securing USD 6.5 Mn during Q’1. 

About Our Partners:

Startup Bangladesh Limited is the flagship venture capital fund of 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.

ExitStack is an online platform featuring stories, deal news, and analysis about Bangladeshi and diaspora startups. It aims to share insights on companies and founders with everyone, including potential investors and partners, around the world. 

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

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