During the event focused on Connecting Innovative SMEs and Start-ups with Private Equity & Venture Capital Firms for Bridging Financing Gap, speakers emphasised the crucial role of venture capital and private equity in supporting emerging businesses in the industry.
Venture capital serves as an essential source of financing for promising start-ups, offering investment in exchange for ownership stakes. Conversely, private equity investments are crucial for established companies looking to enhance their operational capacity or expand market share, especially in the competitive RMG sector. However, speakers noted challenges in asset valuation and a lack of specialised service providers as significant barriers hindering access to these financial resources.
Ashraf Ahmed, president of DCCI, pointed out that the unique nature of tech and design assets in the RMG industry complicates the valuation audit process. “Businesses need to focus less on physical asset valuation and more on the potential of their intellectual property,” he stated, highlighting a common hurdle faced by innovative garment manufacturers. He urged industry stakeholders to concentrate on navigating these challenges while remaining compliant with existing legal regulations.
The demand for financial support is evident, and as innovation continues to grow, Ashraf urged for greater awareness of venture capital and private equity opportunities among small businesses.
Former director of the University of Dhaka’s Institute of Business Administration, Mohammad Abdul Momen, added that a robust legislative framework is essential for the growth of these financing avenues. “Supporting creative start-ups from their inception is vital for the overall benefit of Bangladesh’s economy,” he said, emphasising the importance of protecting innovations through patents.
The event featured insights from key industry figures, including Mohammad Ashraf Hossain, head of compliance at Maslin Capital Limited, Shawkat Hossain, CEO of Bangladesh Venture Capital Limited, Jasim Mohammad Miah, investment manager at X Angel Limited, and MM Ehsan Nizamee, CEO of Finager Fintech. A total of eight representatives from private equity and venture capital firms engaged with 14 start-ups and 26 SMEs, fostering connections aimed at bridging the financing gap and facilitating sustainable growth within the industry.
