Bangladesh's startup ecosystem surged forward in 2024, gaining unprecedented global recognition. Alongside individual startup successes, the ecosystem demonstrated resilience and innovation through transformative programs, events, and partnerships.

Navigating a volatile political and economic landscape

The year saw a dramatic shift in Bangladesh's political landscape, driven by protests against a controversial quota system, widespread economic instability, and growing public dissent over authoritarian governance. These movements culminated in the formation of an interim government tasked with steering the nation towards reform and stability​.

Amidst this turmoil, Bangladesh's startup ecosystem defied challenges to report a 1.2x quarter-on-quarter (QoQ) growth in Q3, finds a report by LightCastle Partners, reflecting the resilience of local entrepreneurs and continued investor confidence. Although deal activity declined, the average deal size increased, with notable late-stage investments dominating the funding landscape​​.

Shark Tank comes to Bangladesh

Fifteen years after its international debut, Shark Tank finally arrived in Bangladesh, creating a much-needed platform for local entrepreneurs to pitch their ideas to top-tier investors. This milestone led to over a dozen startups securing funding, with standouts including EcoSolve, which focuses on sustainable climate-tech solutions, and MediAI, an AI-powered health diagnostics platform. Beyond funding, the show spotlighted Bangladesh's entrepreneurial talent and inspired a new wave of innovators.

Government-backed growth initiatives

The government also played a pivotal role in fostering innovation. Startup Bangladesh, the nation's flagship startup initiative, expanded its grant program to Tk 100 crore in 2024, benefiting over 50 startups across sectors such as edtech, agritech, fintech, and healthtech. Notable beneficiaries included TeleDoc, a telemedicine platform catering to rural communities, and ArtisansConnect, an e-commerce venture supporting local artisans and small businesses. These efforts underscore the government's commitment to creating a robust entrepreneurial ecosystem.

However, systemic biases in funding decisions emerged as a key concern. Several founders highlighted cases of political interference, with funding being withheld for startups perceived to be aligned with opposition ideologies. For instance, Shikho and 10 Minute School faced abrupt funding withdrawals from Startup Bangladesh Limited (SBL), allegedly due to political affiliations. This has sparked calls for greater transparency and meritocracy in government-backed initiatives.

Global accolades and investments

Bangladeshi startups also made waves internationally. Two startups, Tiger New Energy and iFarmer, were featured on Forbes Asia's 100 to Watch 2024 list. Tiger New Energy is revolutionizing EV infrastructure with over 100 battery-swapping stations nationwide, supported by $3.5 million from ADB Ventures and Wavemaker Partners. Meanwhile, iFarmer has empowered over 10,000 small-scale farmers through its app, Sofol, connecting them to wholesalers, resources, and advisory services.

The Q3 2024 Startup Investments Report by LightCastle Partners highlighted a surge in late-stage funding, amounting to USD 19 million—a 567% rise from earlier quarters. This reflects growing confidence in the ecosystem's maturity, though early-stage funding declined sharply, signaling a need for recalibration to nurture emerging ventures​.

The Dhaka Startup Summit, hosted by BASIS, attracted over 5,000 attendees and offered $1 million in funding to promising startups through its "Pitch Perfect" competition. Similarly, four Bangladeshi startups, including Chhaya and Palki Motors, secured spots in the Accelerating Asia Ventures 10th cohort, receiving $100,000 each alongside mentorship and networking opportunities.

These events, alongside consistent international investor participation—accounting for 99% of total funding in Q3—highlighted Bangladesh's emergence as a promising destination for global capital​​.

Balancing promise with challenges

Despite these advancements, challenges persist. Political favoritism and opaque decision-making processes continue to undermine equitable access to resources for startups. Additionally, the significant decline in early-stage funding raises concerns about long-term ecosystem sustainability​.