Bangladesh’s startup scene is rising, with many experts predicting it to be the next Asian Tiger. Due to a combination of factors, including a rapidly growing economy, an abundance of young, tech-savvy entrepreneurs, and an increasing amount of venture funding flowing into the country.

In recent years, venture funding worldwide has soared, with a 95 percent increase from USD 148 Bn in 2020 to USD 288 Bn in the first half of 2021. This trend is particularly evident in Asia, where startups are increasingly gaining global traction. As of June 2022, there are over 1,100+ Unicorns (valuation over $1Bn), 50 Decacorns (valuation over $10Bn), and 3 Hectacorns (valuation over $100Bn) with a cumulative value of USD 3.8 Tn.

One of the key drivers of this growth is the thriving economy of Bangladesh. According to the World Bank, the country’s economy has been growing steadily by over 6 percent per year for the past decade. It has led to an increase in purchasing power and a growing middle class, providing a fertile ground for the development of the startup ecosystem.

Another factor that has contributed to the success of Bangladesh’s startup scene is the country’s large youth population. Over 60 percent of the population is under 30, and many of these young people are tech-savvy entrepreneurs who desire to innovate and create new businesses.

Despite the current economic downturn caused by the pandemic, the startup scene in Bangladesh is expected to continue to grow. While there may be a reset in capital flows and valuations, the country’s solid fundamentals and potential for future growth make it an attractive destination for venture capital investment. With a rapidly growing economy, a young and tech-savvy population, and increasing venture funding, Bangladesh is well on its way to becoming the next Asian Tiger in the startup scene.

In addition to the factors already mentioned, there are several other reasons why Bangladesh’s startup scene is ready for significant growth in the coming years.

Bangladesh’s key advantage over other countries in the region is its large and growing market. With a population of over 160 million people, the country offers a vast potential customer base for startups to tap into. Additionally, the government has been actively promoting the development of the digital economy, which is expected to drive growth in the startup scene.

Another advantage that Bangladesh has is its relatively low labor costs. This makes it an attractive destination for startups looking to outsource certain functions or scale their operations. The availability of a skilled and educated workforce, particularly in IT and engineering, is also a significant asset for the country.

In addition to these advantages, several initiatives and programs are aimed at supporting the development of the startup ecosystem in Bangladesh. For example, the government has established several technology parks and incubators to provide startups with access to resources and support. Private investors and venture capitalists are also starting to take notice of the potential in Bangladesh and are increasingly investing in local startups.

Bangladesh’s startup scene is the most potential for significant growth in the coming years. With a thriving economy, a large and growing market, and a supportive ecosystem, the country is well-positioned to become a significant player in the global startup scene. As the next Asian Tiger, Bangladesh is expected to create many opportunities for entrepreneurs and investors and continues to be a destination for growth and innovation.