New ventures need supporting ecosystem to thrive: DCCI president
Financing of innovation is not within the expertise of banks, he says
Building a knowledge-driven economy is vital for Bangladesh's future, and new ventures need a supporting ecosystem to thrive, Ashraf Ahmed, president of the Dhaka Chamber of Commerce and Industry (DCCI), has said.
Funding, in the form of patient equity from venture capital firms, is crucial for success, he said. Financing of innovation is not within the expertise of banks, Ashraf said.
Banks depend on the valuation of physical assets to secure their lending, which should not be the focus of businesses creating IP, he said.
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The Dhaka chamber president made the remarks at a focus group discussion on "Connecting Innovative SMEs and Startups with Private Equity & Venture Capital Firms for Bridging Financing Gap" organised by DCCI in the city recently.
Professor Mohammad Abdul Momen, a former director at the Institute of Business Administration of the University of Dhaka said the sector needs a conducive policy regime to grow.
"Many innovative startups are coming out which is a good sign and we need to nurture them to sustain from the very beginning for the sake of the country's overall economy," he said. Momen also called upon the young innovators of Bangladesh to patent their innovations for the future.
Mohammad Ashraf Hossain, head of compliance and company secretary of Maslin Capital Limited, Shawkat Hossain, CEO of Bangladesh Venture Capital Limited, Jasim Mohammad Miah, investment manager of X Angel Limited, and MM Ehsan Nizamee, CEO of Finager Fintech, also spoke on the occasion from the venture capital and equity funding firms' perspective.
Speakers said venture capital and private equity investors can 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 having their assets in intellectual form, they said.
Eight representatives from private equity and venture capital firms participated in the event. Additionally, 14 startup companies and 26 SME companies took part in the event as well.
Members of the DCCI board of directors, among others, were present during the meeting.
