Dhaka Chamber of Commerce and Industry (DCCI) has stressed the need for building a knowledge-driven economy, which is vital for Bangladesh's future.
It also emphasised the need for a supporting ecosystem for new ventures to thrive.
The trade body made the observations during a focus group discussion on "Connecting Innovative SMEs and Startups with Private Equity and Venture Capital Firms for Bridging Financing Gap" at DCCI recently.
At the discussion, DCCI President Ashraf Ahmed said that funding against patent equity from venture capital firms was critical for success.
Banks depend on valuation of physical assets to secure their lending, which should not be the focus of the businesses creating intellectual property (IP), he said, recommending access to finance.
Participants at the event also stressed the need for secured investment and return of revenue that are critical in this sector.
They also said that venture capitals (VC) and private equity (PE) investors could be the best option of alternative financing other than banks for the potential SMEs and startups.
Tech companies are facing difficulties in the valuation audit process due to their assets in the intellectual form.
Participants also stressed the need for focusing on policy reforms, setting up a logical exit plan for startups, fund raising especially from outside, valuation method, etc.
"As entrepreneurs, both as investors in growth and raising funding for innovation, we should focus on overcoming our challenges ourselves, within existing regulatory constraints. PE and VE need to be popularised in Bangladesh among the small enterprises," the DCCI president said.
Professor Mohammad Abdul Momen, former director, Institute of Business Administration (IBA), University of Dhaka, said that the sector needed a conducive policy to grow.
talhabinhabib@yahoo.com