The startup funding landscape in Bangladesh experienced a significant downturn in the first quarter of 2024, mirroring broader global trends. According to the Bangladesh Startup Investment Report 2024 by LightCastle Partners, Bangladesh’s startup sector saw a 70% quarter-on-quarter decline in funding, securing only USD 7 million across four deals—a substantial drop from the surge witnessed in the fourth quarter of 2023. .
The global context reveals a similar pattern, with a 26% drop in startup funding from the last quarter of 2023 to the first quarter of 2024. AI startups continued to attract considerable investment, raising USD 4.7 billion, representing a fifth of total global funding.
In Bangladesh, the focus shifted towards late-stage funding, which accounted for 75% of the total investments during the first quarter. Venture capital firms were the primary source of funding for Bangladesh-based startups, contributing 97% of the total investment. Startup Bangladesh Limited (SBL), the government-backed sovereign venture capital fund, was the only local investor to participate in these funding rounds.
The e-commerce and retail sectors were the most significant beneficiaries, with PriyoShop’s Pre-Series A funding round of USD 5 million leading the way. The other sectors that received investments were Food & Agriculture and Software Technology & Enterprise Solutions
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