Access to venture capital for startups

There are about 15 venture capital firms in Bangladesh looking for new investments that would bring fruitful returns. Venture capital firms take on a lot of risk before investing in a business. Initially, when the business is small, crowdfunding can also be an option. However, as new startups continue to emerge, funding is essential, as financial support is the most crucial aspect of any business.
Before investing in a business, venture capital firms are keen to hear the business idea and understand its future potential for expansion. The first thing that venture capital firms consider is how quickly and how much return the business can generate.
One of the main roadblocks is the inability of aspiring entrepreneurs to understand and be aware of the opportunities in venture capital. Common hurdles encountered by many startups when trying to secure investment include a lack of ability to structure their proposals, a lack of awareness of what investors expect, and a lack of understanding of which firm is suitable for their needs.
In addition, many venture capital firms are concentrated in urban hubs, putting startups in rural areas at a significant disadvantage. It is a mistake to overlook the importance of innovative ideas from smaller towns and communities, where some of the best solutions to real-world problems often emerge.
One of the biggest problems is the reluctance of local venture capital firms to invest in early-stage startups. Most firms want to bet on existing businesses with proven revenue streams, while new, high-risk businesses struggle to generate the funding they need to scale. Poorly funded, these startups rarely reach their true potential, missing opportunities for economic growth and job creation. Accessing a venture capital firm might seem difficult, but with the right research and network, it is definitely possible.

Safeer Amrillah
Bachelors of Business Administration
North South University
[email protected]