BD Venture partners with US co to finance 'innovative' projects

FE Report Local venture capital firm BD Ventures Ltd and American DEFTA Partners of have joined hands to invest in projects that foster innovation. The two companies on Tuesday signed a memorandum of understanding (MoU) for co-financing in different business ventures in Bangladesh. The Group Chairman of DEFTA Partners Ambassador George Hara and Managing Director of BD Venture Limited Shawkat Hossain signed the MoU on behalf of their respective sides in the city. "BD Venture will finance in the innovative and promising entrepreneurs in the sector of Information Technology, agriculture and agro-based industries, food processing, bio-technology, renewable energy, health service, education, tourism, printing & packaging industries in Bangladesh," M. Aftab ul Islam, chairman of the company, told journalists. The Country Manager of Alliance Forum Foundation in Bangladesh Jiro Makimoto, Vice Chairman of BD Venture Mamun Rashid, Managing Director Shawkat Hossain, Director Anis A. Khan, Abdul Hafiz Choudhury, Ahmed Saifuddin Chowdhury and other high officials from both organizations were also present. M. Aftab ul Islam said BD Venture would select the promising ventures and nurture the projects to make sure they succeed. "We will prefer the entrepreneurs who do not have access to traditional bank loans," he said. Mr Islam urged the government to formulate necessary law for venture capital companies. George Hara said DEFTA Partners has been actively identifying, nurturing and funding companies those are focused on developing world class technologies since 1984. He said, "In addition to providing capital funding, we take a hands-on approach and play an active role in our portfolio companies. We offer valuable financial and operational guidance as well as access to a powerful network of strategic alliances for the success of companies." He also said this co-financing agreement with DEFTA partners will be helpful to support budding entrepreneurs in Bangladesh. "I see Bangladesh has a promising future. This country will become a country like Japan in 20 years," he said. Dhaka Chamber of Commerce and Industry (DCCI) Sabur Khan said India has 22,000 venture companies, Sri Lanka 200, although Bangladesh has just moved into the sector. "We need this kind of company to support our growth," he said. BD Ventures Ltd., was launched last year with a promise to finance young educated entrepreneurs who do not have access to formal financing. Venture capital or equity financing is a subset of private equity provided in the early-stage of high-potential and high risk small companies. Of the total amount of BD Venture's paid-up capital, 80 per cent is owned by institutions and the remaining 20 per cent belongs to individual shareholders. The institutional shareholders are Mutual Trust Bank Ltd., National Bank Ltd., Green Delta Insurance Company Ltd., Bangladesh General Insurance Company Ltd., LankaBangla Securities Ltd., Dataedge Ltd., Asia Pacific General Insurance Company Ltd., MIDAS Financing Ltd. and IPE Capital. The individual shareholders are Aftab ul Islam, Mamun Rashid, Wahidul Haque Siddiqui, Moshiur Rahman, Ghulam M Alomgir, Abdul Hafiz Chowdhury, M Ehsanul Haque and Shawkat Hossain.