The figure is almost half of the $91.3 million received by the local startups in the corresponding period of the last year.
Funding for Bangladeshi startups remained sluggish as local companies raised $43.3 million in the first half (January-June) of the ongoing calendar year.
The figure is almost half of the $91.3 million received by the local startups in the corresponding period of the last year (H1’2022).
The figures were revealed in a recent report prepared by LightCastle Partners, a private sector research organization.
According to the report, startups in Bangladesh managed to secure $6.8 million through 11 deals in the second quarter of 2023 (April-June).
This growth (funding) was largely driven by small-ticket funding from local investors, indicating the country’s potential for fostering entrepreneurial growth, the report said.
Global macroeconomic shocks and external pressures are tightening financial conditions worldwide, impacting consumption and business operations, including in Bangladesh, the report further said.
Soaring inflation, geopolitical stress, and global energy crisis have created shockwaves across economies leading to lower private consumption, stunted industrial production, and reduced start-up funding globally.
Regarding the Q2 funding in Bangladesh, the report said the logistics and mobility sector emerged as a frontrunner, in terms of highest funding received, amounting to $5.1 million compared to the first quarter.
Players in the logistics industry have raised eight times the amount in Q2, indicating a growing demand for innovative solutions to ease transportation woes, the report said.
The report recommended that the local startups should prioritize optimal resource management, such as recalibrating unit economics to effectively balance revenue and incurred costs.
It also said the investors and local ecosystem builders should adopt collaborative initiatives among public and private sector entities which can equip entrepreneurs with the necessary knowledge to fuel business growth.