Bangladesh’s Startup Investment Report 2023 (Easy Analysis)


The startup investment landscape in Bangladesh has been a rollercoaster, and LightCastle’s annual report for 2023 sheds light on the highs and lows of this journey. Let’s dive into the key takeaways and understand what they mean for entrepreneurs and investors alike.

A Tough Year for Startup Investments

Last year wasn’t easy for startup founders in Bangladesh. Compared to the previous year, there was a significant 42% drop in investment funding. 

This decline mirrors a global trend, with the worldwide funding market also experiencing a downturn. In total, the Bangladesh market saw 45 deals, amounting to $72 million USD. It’s clear that the economic challenges of 2023 left their mark on the startup ecosystem.

Standout Startups Amidst the Downturn

Despite the tough conditions, some startups managed to defy the odds. Shopup, Arogga, 10 Minute School, Nitex, and Jatri emerged as winners, successfully securing funding in a challenging market. Their success stories offer hope and inspiration for other startups navigating these uncertain times.

Investment Patterns and Trends

One noteworthy aspect is that nearly all investments in Bangladeshi startups came from international sources. This global interest is a positive sign for the local market. Additionally, venture capitalists contributed to half of the total investment volume, demonstrating their significant role in the ecosystem.

Industry Preferences of Investors

In 2023, finance, sports, and education were the top sectors attracting investor attention in Bangladesh. These industries continue to show promise and growth potential, making them appealing choices for venture capitalists and angel investors.

The Road Ahead For Startup Founders and Investors: 2024 and Beyond

As we look forward to 2024, the outlook seems brighter. The global economy is gradually recovering from inflation, and the performance of the US market will significantly influence venture funding. With new platforms like Shark Tank Bangladesh and the country’s progress towards a middle-income economy, interest in investments is on the rise.

If You Are Preparing for Future Funding

For startup founders eyeing fundraising in the next few years, some critical steps can make all the difference:

  • Transition to a limited company structure.
  • Maintain clean financial practices with a dedicated business account.
  • Streamline operations, hire the right team, and adopt effective automation.
  • Be prepared with solid financial data and projections for potential investors.

As the startup investment landscape evolves, staying informed and prepared is key. We’re excited to see how the scenario unfolds in 2024 and beyond.

Thank you.

Zaryab Hasin


Youngest Digital Marketing Strategist: An SEO/Content Marketing Expert for Outburst Marketing l Senior SEO Executive for DigiFea

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