Startup Bangladesh, the flagship VC fund of the country’s ICT (Information & Communication Technology) Ministry, announced the launch of its $65 million fund.

Startup Bangladesh is a project to create skilled manpower and entrepreneur through training and mentoring in the ICT sector, besides making a significant contribution to the implementation of Digital Bangladesh.

In addition, the project has been playing a major role in promoting entrepreneurship as well as promoting startup culture in the IT sector in Bangladesh with its Startup Bangladesh banner.

The fund has already invested in seven startups as of March 31 and it aims to back 50 companies by the end of the year.

The seven startups that it has funded are ride-sharing and logistics firm Pathao, health tech startup Dhaka Cast, mental health firm Money Bondhu, e-commerce player Chaldal, edtech venture Eduhive, domestic services startup Sheba.xyz, and software startup Intelligent Machines.

The startup said the fund's portfolio firms aim to use the funds to scale up production, improve the quality of their offerings, and further develop their supply chain and marketing strategies.

The startup was established in March 2020 to help the country create new jobs, develop technical skills for its working population, and innovate faster.

It will provide investments in the forms of equity, convertible debt, and grants to pre-seed, seed, and growth-stage startups through co-investments, as a fund-of-funds, and as an asset manager.

“Startups could play a crucial role in addressing the market needs, which will serve as the foundation for far-reaching consequences in the GDP’s overall growth,” says, Zunaid Ahmed Palak MP, the state minister of Bangladesh's ICT Division.

“The tech solutions provided by startups could support the nation in achieving Sustainable Development Goals by 2030.”