Friday, April 19, 2024
Venture Capital and Private Equity fund managers urged the government to exempt tax for alternative funds to foster investments and better access to finance for venture capitals and startups.
Leaders of the Venture Capital and Private Equity Association of Bangladesh (VCPEAB) came up with the demand in a virtual dialogue titled Venture Capital and Startups for a Post-COVID Resilient Economy held on Thursday.
The virtual event was organised by VCPEAB in partnership with the Capital Market Journalists’ Forum.
“In next 15 years, majority organisations in the world will initiate impact-driven businesses and the majority of the world population will consume products and services from impact-driven companies,” said Shameem Ahsan, President of VCPEAB.
“It will also help us become less susceptible to pandemics like Covid-19 and build a resilient economy,” said Shameem.
As an emerging sector, venture capital and startups need policy and financial support to grow. In the next budget, the government should exempt tax for the sector, said the sector leader.
Panning Minister MA Mannan was present as the Chief Guest, while Shibli Rubayat-Ul-Islam, Chairman, Bangladesh Securities and Exchange Commission (BSEC) joined as special guest.
“Today’s startups will be the building block of the next decades in Bangladesh. Appreciating the role of the Government of Bangladesh in the last five years,” said Arif Khan, Vice Chairman, Shanta Asset Management.
“I would like to request all the regulators and stakeholders to remove the major obstacles as fast as possible for a robust startup ecosystem to unleash the opportunity in an undiscovered gem of Asia,” he added.
In response to the call, MA Mannan said: “The government is here to support the VC and startup sector, and it has taken joint efforts with regulators, private financial institutions, and venture capitalists.
“Together we plan to create an environment, where startups can truly sustain and create an impact in our country. Moreover, we aim to work on the policy level to allow entrepreneurs to sustain and operate their businesses with ease,” he said.
Shibli Rubayat-Ul-Islam said they have always been incorporating new rules and regulations to foster investments in startups and to assist in bringing startups to the capital market with proper due diligence.
“Startups use innovative business models to drive growth. We are here to support these businesses through capital market inclusion and investments so that they can bring forth the latest innovations in our economy,” said Rubayat.
Abu Farah Md. Nasser, Deputy Governor, Bangladesh Bank said, “Bangladesh Bank will give as much facility as possible under the current regulations. The market demand for credit is already there and the banking sector has to be efficient to be an important part of the VC and startup ecosystem.”
CMJF president Hasan Imam Rubel, Zaid Bakht, Chairman, Agrani Bank, Asif Mahmood, Managing Director, SEAF Bangladesh Ventures LLC, Maliha Quadir, Managing Director, Shohoz, Shawkat Hossain, Director, Light Castle Partners and CMJF Secretary Munir Hossain joined the virtual dialogue.
