US firm plans to pump $200m into BD

Fenox Venture Capital, a US-based venture capital firm located in Silicon Valley, has shown interest to invest some $200 million in potential sectors of Bangladesh through a 10-year plan.

According to official website, Fenox VC provides early stage and final round funding, targeting opportunities in areas like IT, healthcare, artificial intelligence, internet of things (IoT), robotics, big data, virtual reality, augmented reality, FinTech and next generation technologies.

Anis Uzzaman, general partner and president of Fenox VC, recently visited Bangladesh and talked to the FE about his company's plan to invest in the country's potential firms.

"We want to invest $200 million in Bangladeshi firms through a 10-year plan."

He said Fenox VC has set its initial target to make investments in the companies of IT, e-commerce and healthcare sectors.

Mr Anis Uzzaman, also the CEO of Fenox VC, said his company has already made some investments in three local companies - Prio.com, Shohoz.com and HandyMama.com.

"Presently, we are making foreign direct investment (FDI), and expecting to launch a local fund within one year to continue venture financing to facilitate potential sectors in Bangladesh."

He said the countries with large population experience growth in economy and use of internet. Bangladesh is the 8th largest country in the world in terms of population, where more than 50 million people are using internet.

"The government is also working very closely with various sectors such as IT and healthcare. The young population has also inspired us to make investment in these sectors."

Mr Anis Uzzaman said as part of their investment strategy they want the potential companies to grow first.

"We also expect the government's support in facilitating foreign investment," he added.

In June 2015, Bangladesh Securities and Exchange Commission (BSEC) approved rules on private equity and venture capital financing for financing potential firms.

According to the rules, a fund manager will raise capital for a fund from eligible investors - Bangladeshi, foreign and NRBs - by issuing units of the fund.

At least 75 per cent of the fund will be invested in non-listed securities, as the main objective of forming such funds is to promote private firms in their early stage.

The fund manager will be allowed to invest maximum 25 per cent of the fund in listed securities and units of alternative funds, managed by other fund managers.

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