BRAC University

Report on
Venture Capital Financing in Bangladesh
Course Title: Financial Institutions & Markets
Course Code: Fin603

SUBMITTED TO:

DR. Salehuddin Ahmed

Professor

BRAC Business School

BRAC University

SUBMITTED BY:

STUDENT ID STUDENT NAME

18364066 MD NAZMUL HUDA

18364073 MD RASEL AZAM
18364076 SANJANA BINTE SHAHJAHAN
18164013 ABU RAFE TOHA

Date of submission: 19.11.2019

ACKNOWLEDGEMENT

This study has been conducted to analyze the “Venture Capital Financing in Bangladesh.”
The report in this form is the result of their inspiring and invaluable guidance and supervision. We
express our gratitude to supervisor and the lecturer Dr.Salehuddin Ahmed for his guidance and
his timely advice and continuous encouragement.
We also would like to give appreciation to all our friends who have always supported us in our
work and gave us courage throughout the preparation of this research.

Finally we would like to sincerely acknowledge our parents who have always been a support for
us. Without their love and care this work would have not been completed.
LETTER OF TRANSMITTAL

17thth October, 2019

Dr. Salehuddin Ahmed
Professor
BRAC Business School
BRAC University
Subject: Submission of Course Final Report Analysis of Venture Capital Financing in
Bangladesh
Dear Sir,
With due respect, we would like to inform you that, it is a great pleasure for us to submit the report
on “Venture Capital Financing in Bangladesh” as a requirement for the completion of Financial
Institution & Markets subject. We have tried to make the report a comprehensive one within the
given time. We earnestly thank you for your guidance during the preparation of this report. While
conducting the report, we have gathered lots of knowledge about the Venture capital financing in
Bangladesh.
We therefore, request you to accept this report and give us proper suggestion to work in our
professional life.
Yours faithfully,

Name ID Signature
MD Nazmul Huda 18364066

MD Rasel Azam 18364073

Sanjana Binte Shahjahan 18364076

Abu Rafe Toha 18164013

EXECUTIVE SUMMARY

This report is prepared as requirement of the Financial Institutions & Markets subjects. This report
focus on current situation of Bangladesh Venture Capital Industry. We tried our best effort to
provide a clear idea about current situation of Venture Capital industry.

In Bangladesh new entrepreneurs do not often have the entrance to the capital to materialize their
ideas or bring high growth prospects into their innovations especially at their early stages. An
enough flow of risky capital in our economy could play a leveraging role to upward entrepreneurial
operation. Generally the angel investors and venture capital firms build this portion of risky capital
for the new companies.

The report is divided into many parts which include: The introduction, objectives, literature
review, data analyzing, recommendation and conclusion. Firstly, introductory part of the study,
the second part is focus on Venture Capital industry history and area, features of venture capital
Companies. After that we describes about the Bangladeshi scenario of venture capital &
investment process of venture capital, Next is the problem and prospects of venture capital in
Bangladesh. At last, findings and recommendations all over the venture capital industry.
Introduction:

In any business capital and human resources are most important factors. People creates innovative

ideas and carry out the duties and responsibilities to attain goals with the help of capital. Capital

actually is the core part of any business to succeed. Hence, business people's main concern is to

collect the requisite amount of capital for the growth and development of the business along with

innovative business ideas with skilled manpower. Now, in the era of modern world, capital

collection for a business now becomes comparatively easier than in the past. Now, any established

well known business firms can collect their required amount of capital from different ways -issuing

shares in the stock market, issuing debt from the bank and other non-bank financial institutions

and selling marketable securities in the money market. But, it is difficult for a new business to

collect capital for the business by issuing debt or share in the market because of having risk of

uncertainty of the success of the business and ability to repay the loan or share when claimers want

it. For this type of business that has a higher possibility of growth in future , venture capitalists

organizations has come forward to help the firms with venture capital financing. Though venture

capitalists know that there is a huge risk for getting their investment in new entrepreneur business

or new startup companies or middle stage companies which needs funds to develop their business

to grow, they take high risks in the expectation of high return comparatively to their investment.

As venture capital financing helps investors to become one of the owners of the new firms, they
try to invest and secure their funds in such a new start up business which has a high probability for

growth like Information technology based firms or agro processing firms. Thus, financing capital

for the new firms, startup companies for the hope of high return create a revolutionary change in

the economy of any county. Venture capital financing has played an important role in the

establishment of many well-known companies in the world-like Google, Microsoft, and Facebook

etc. Venture capital concept is being more popular around the globe after the 2000 year, though its

positions in Bangladesh is not as strong comparative to other countries of the world. No doubt, it

is needed for the growth of the economy by allowing new innovative business firms to come and

contribute to the economy through venture capital financing. Now, in Bangladesh, some venture

capital financing firms are trying their best to help the new entrepreneur opening their new business

by providing financial support and technical support. Now, it is a matter of hope that some business

firms or organization is developing in our country by

Venture capital financing. Manny local and international organization now are coming forward to

venture capital financing to the innovative ideas of new young generation, Pathao is one

remarkable example of successful venture capital financing in Bangladesh. It is hoped that the

future of an economy will he more strongly by creating and making more venture capital financing

in new trendy business ideas.

History of Venture Capital

The Descendants of modern venture capital in the United States developed in the late 19th and

20th century. The first impetus to organize investing from wealthy Americans. The first modern
venture capital was formed in 1946 mainly involved with top university Authority. Doriot started

American Research & Development (ARD). The company's goal was to finance the development

of commercial applications of technology during World War 2. Doriot was the heart & soul of

ARD and is logically called the “father of venture capital”. Doriot's focus is on adding value to

the business, not just providing money. In Northeast, both in New York and Boston, the earliest

venture capital was organized. West Coast's venture capital did not come into being in 1957. By

1992, venture capital on the west coast had become one of the nation's entrepreneurial activities.

While the country's other area continues to be underrepresented, venture capital is expanding

rapidly from the Midwest and Southwest. ARD's dramatic success led individuals in the 1970s to

launch new, private venture capital firms. Some of the earliest imitators were in fact former

members of the ARD team, including Bill CongeRon, the DEC investment initiator of the ARD

associate. This spawning created private venture capital companies that introduced Doriot's spirit

to new firms. The goal was always the "home run" while the "hands-on" management was

always the modus operandi. The "new" venture capitalist (as opposed to the SBIC manager)

provided the entrepreneur with numerous services including access to investment bankers,

corporate lawyers, accountants, and industry experts.

Literature Review:

Venture capital is now becoming an alternative source of financing for startup companies and

small business. To realize its importance in the economy a number of researchers has expressed
their research results through different research articles. Venture capitalist invests in stat-up

companies to get high return on the investment. Venture capitalist usually wants to exit i.e. return

back their investment from the portfolio companies after some certain period 4-7 years. So, to meet

the funds of venture capitalists, portfolio companies or entrepreneur has exit option to choose-

trade sale/acquisition or initial public offering (IPO). As IPO gives the entrepreneur the control of

management of their components and run independently, mostly entrepreneurs choose initial

public offering [1].

The rapid growth of venture capital in developing countries is noticeable. But, in Bangladesh

venture capital industry doesn’t grow in so much yet. The other southern countries are far more

ahead than us. Bangladesh’s venture capital firms are operating about 10 years, in that sense, our

country’s venture capital is now in an infant stage. Due to having different innovative ideas

generated by young entrepreneurs, Bangladesh has great opportunity to enhance its strength in

venture capital industry that will bring a good impact in the economy [2].

As financial institutions especially banks and non-bank financial institutions don’t provide loans

in uncertain projects like projects undertaken by startup companies or small business. Hence,

entrepreneur faces problems to raise their required amount of money to start their project. In that

scenario, venture capitalists come forward and invest in startup companies after evaluating its

probable growth opportunity in future so that they can return back to their invested funds. Usually,

venture capitalists encourages technology based startup companies through financing, guiding and

monitoring [3].

Different companies that needs venture capitals have different degree of risk. Higher income

generating companies and lower income generating companies both have to pay income taxes.

Govt. tax policies often becomes an obstacle to sustain in present, though it may grow in the future.
Due to the tax policy, not friendly to the ventures, many venture capitalists sometimes avoid risky

venture ideas in spite of having high growth possibility and prefer less risky venture ideas [4].

Venture capital:

Venture capital is one type of private equity that firms invest in startup companies or small

businesses which have a high growth potential in future. Venture capital firms invest in exchange

of equity or ownership stake. Venture capital firms or venture capitalists usually undertake high

risk investment with a view to getting high return when the contract will end between them and

the portfolio companies. Usually the venture capitalists invest those innovative business and can

provide more return in future than the traditional business gives. The business that usually attracts

the Venture Capitalists are technology based IT (Information technology) Firms, Agro based food

processing firms, biotechnology based firms etc. As there is always risk exists in venture capital

financing, it is sometimes called risk investment or patient investment. The funds of venture capital

comes from individual investors, institutional investors and sometimes foreign investors/firms.

Venture capitalists:

As the name suggests, venture capitalists are those persons or institutions that provide funds as

investment to the business venture either for setup the business or expansion it further. Practically,

venture capital comes from different venture capital firms who raise funds from various sources

and invest in those business that has a high probability to grow and capability to provide the

required amount of return to them after the contractual period. Venture capitalists obviously ask

for high return than the usual loan, share market due to taking high risk of return i.e. the funds can

be recovered if portfolio firms become successful or it will be unrecovered if the portfolio firms

become failed to sustain in the market.

 Venture capital financing stages:

Venture capital are provided in different stages. The main six stages of venture capital financing

are as follows:

 Seed stage: In this stage, the startup companies just have only the idea, may don’t have

commercially salable products or services. Hence, based on the prospective idea alone, the

startup companies tries to convince investors about the attractive future of their project

idea. The amount of funds provided by the investors are comparatively small and mostly

the funds are used for the market research, development of product, expansion of business

for creating a prototype of the business for attracting investors later in their business and

convincing them to invest .

 Startup stage: When a company reaches this stage, typically the companies have

completed their required research and development and constructed a business plan. Now

they are ready to start their product’s or service’s advertising and marketing to attract

trouble customers. In this stage, the company has a perfect prototype and don’t sell their

products or services in the market yet. In this stage the startup companies requires a big

amount of cash for fine-tuning their products and services, expanding their manpower and

performing necessary research to come in market as official business.

 First stage: This is the stage when the companies now start to making profit. Sometimes

this stage is called emerging stage. In this stage, company starts selling their products in

the market. Hence, the funds come from investor in this stage goes directly to product

manufacturing to increase sales. The funds from investors come in that stage is typically

significantly higher than the earlier stages. The companies, at this stage, tries to give more
 attention on marketing and advertising to reach more customers to increase sales and earn

more revenues.

 Expansion stage: Expansion stage is also known as second stage or third stage. In this stage,

the company has high opportunity to extend their business to meet the increased demand

of their products or services. In this stage, the company experiences growth at an

exponential rate. Hence, in this stage venture capital funds helps to extend the business of

the companies (portfolio companies) through product diversification and expanding market

to earn more profits and make a strong position in the market.

 Bridge stage: It is the final stage of venture capital financing. In this stage, it assumes that

a company are now in a mature stage. The funding in this stage company obtained is used

to perform activities like acquisitions, mergers or IPOs (initial public offering).The bridge

stage is very important for a company to become viable business entity and to run it

independently without sufficient support from venture capitalists. So, in this stage, some

investors like to sell their shares and end officially close their relationship with the

company with a significant amount of return on their invested capital.

Methods of venture capital Financing:

Venture capital financing from the venture capitalists can be done in one of the following forms:

 Equity Financing: Every venture capitalist give equity financing. It becomes beneficial to

the startup companies as they need funds to grow but usually cannot give return to the

investors. In equity financing, the venture capital firms provides at most 49% of the funds

needed as equity capital. Usually, startup companies' entrepreneurs possesses the actual

control and major portion of ownership of the business. Venture capitalist owns the shares
 of the portfolio firm’s profit as well as its losses. If the business becomes successful, then

Venture capitalist obtain capital gain.

 Conditional loan: Conditional loan is another form of venture capital financing which

doesn’t follow the characteristics of regular loan from bank or financial institutions. In

conditional loan, interest and repayment don’t need to pay but a royalty rate is fixed on the

portfolio firms’ future sales of products or services. At a certain percent of royalty from

the sales amount is needed to pay the Venture capital investors. External risk and cash flow

patterns determines the royalty rate.

 Income notes: Income notes is another type of financing provided by venture capitalist. It

possesses the characteristics of conditional loan and traditional loan hence the startup

companies need to pay a fixed low rate of interest and a royalty percentage on sales. The

principal is repaid at a specified time.

 Participating Debentures: Participating debentures is another form of venture capital

financing which offers three different interest rate on three different stages of the company.

If the portfolio company are in a startup stage, then there is no interest. If it was in

initial operation stage, then there is a low rate of interest. If it already has done particular

level of operations, then venture capital firms ask for high interest rate form the company.

Area of venture capital financing:

Generally venture firms prefer different types of investments. Some of them focus on early

expansion or seed capital while some others may emphasize on exit financing. Venture firms

usually finance in start-up businesses & medical services, electronic components and companies,
communications receiving the most financing. In order to maintain the balance between risk &

profitability firms may finance early & later stages investment. Majority of the investment in

Bangladesh takes place in Information Technology sector & some other areas of investment are

agribusiness, media, health & pharmaceuticals.

Features of venture capital financing:

Participation in management:-

Besides money Venture firms can provide managerial expertise to entrepreneur whereas traditional

financier or banker can’t do that.

High risk investment:-

As risk are associated with the management, products & operation, their aim is to get high return

against risky projects.

Lack of liquidity:-

Liquidity would be a major problem as the project is expected to run at the start-up stage for several

years.

Equity participation & capital gain:-

Venture firms finance their money in terms of equity. Capital gain take place if the project is

successful, which is their main benefit otherwise they don’t look for any dividend.

Long term investment:-

In order to liquid the investment in securities, venture capital takes a long term period.

Advantages of venture capital:

Economy oriented:-
Venture capital helps to develop the entrepreneur skills as well as it generates more employment.

It also helps the industrialization in the country as well as the technological development in the

country.

Investor oriented:-

Venture capital helps in order to employ firm’s idle funds into productive avenues. Besides

investors are also benefited because they are invited only when the company starts earning profit.

Entrepreneur oriented:-

Venture capitalist is a business partners as they share risk & reward. They inspire in long term

equity financing that gives a solid capital base for future growth.

Mentoring:-

In many areas venture capitalists have a network of contacts that may add value to the company.

Venture capital in Bangladesh

The scenario of Venture Capital in Bangladesh is becoming more and more interesting. In

Bangladesh, there was previously no regulation on private equity and venture capital funding. A

regulation was introduced by the Bangladesh Securities and Exchange Commission (BSEC) by a

notification on 22 June 2015. The rules called the 2015 Rules of the Bangladesh Securities and

Exchange Commission (Alternative Investment )Rules, 2015 (the Rules) became effective from

June 22, 2015. In Bangladesh, venture capital is growing as 16 firms are licensed to operate. Some

asset management firms, some private firms, as well as those involved in venture capital have

obtained their licenses for a long time. The venture capital market in Bangladesh, however, is not

really noticeable yet in terms of activity. Some regional start-ups, such as Aavishkaar and Osiris,

are being funded by foreign companies. To create and maintain the funds for equity financing,

private equity and venture capital firms will have to follow the Alternative Investment Rules The
fund managers, who must be registered with the BSEC, must raise capital from qualifying

investors, who may be companies, high-net-worth individuals, and managers of foreign funds.

Some Venture Capital Firms/Institutional Investors in Bangladesh:

BD Venture Limited: BD Venture Limited is a Bangladesh-based venture capital firm. They

provide financing the new companies and businesses. To start-up businesses, they create a

financial ecosystem. In general, they want to support such organizations that have creative and

future ideas. They provide various types of financing such as seed, early and growth stage

entrepreneurs and enterprise to support their business expansion through investment facilitation.

BD Venture generally works with a large pool of guarantees and funds. It gives the shareholder

companies full commitment. Institutions such as Mutual Trust Bank Limited, National Bank

Limited, Green Delta Insurance Company Limited, Bangladesh General Insurance Company

Limited, Lanka Bangla Finance Limited, Data Edge Limited holds 80 percent of their shares.BD

Venture has been started to invest in innovative business concepts in emerging and high-growth

sectors. Some major Projects of BD Venture-DOCTORALA. Com, SPL, BRAIN STATION 23

LTD, INTERACTIVE artlafact

IPE Capital: One of the most active VCs in Dhaka having investment in Genex, Cogent

Bangladesh, BD Venture, Swisspro, and Smartkompare.

Bangladesh Venture Capital:

Bangladesh Venture Capital Limited (BVCL) is provide beginning stage funds for the new

business. BVCL wants to make an investment eco-system for the start-up firms in Bangladesh. It

also wants to create a healthy economic culture for all stakeholders. BVCL wants to inspire
entrepreneurs to come up with innovation and creation so that they contribute to the national

economy. BVCL desires to make an investment eco-system for the start-up firms in Bangladesh.

Maslin Capital Limited: MASLIN Capital Ltd is one of Bangladesh's fastest growing alternative

companies. MASLIN Capital Company was born to reverse the economic situation and excellence.

They invest in the newly born yet growing business. Some major projects of MASLIN Capital

Ltd- Maslin Health, Maslin Satellite City, Maslin Firms and Fruits ltd.

Venture Investment Partners Bangladesh Ltd: Venture Investment Partners Ltd, in particular

in growth capital, is a venture capital company. It invests 10 million TK in equities. Founded in

2005, Venture Investment Partners

SEAF Bangladesh Ventures:

SEAF Bangladesh Ventures is an investment company. They actually invest medium sized

business and small business in Bangladesh. SEAF Bangladesh Ventures is managed by SEAF

ventures management LLC, Which is a part of SEAF family. They construct partnership with

entrepreneurs to provide financial solution. They also provide business help to growing small and

medium enterprises in Bangladesh. They provide financing to those firms who face difficulty to

get financing from banks and other institutions. Some investment companies in SEAF Bangladesh

Ventures-Solar Intercontinental LTD, Devante Limited, And Telecom Ltd

GP Accelerator: Country's first early stage start-up acceleration project. The program provides

BDT 10 lakh seed investment for 10 percent equity and has already invested in 5 startups that took

part in their first batch earlier this year.

500 Startups: The US-based Accelerator has been investing in Chaldal and announcing a new

fund for India, Bangladesh and SriLanka.

CoderTrust: Co-founder Hideki Fujita is quite active in Bangladesh startups space, often attends

regional events and programs.

Fenox: Fenox has an investment in Priyo.com, Handymama, shohoj.com and its formal operations

in Dhaka have also recently started. Mind Initiative: SSD Tech's investment wing Mind Initiative

is one of Dhaka's most active investors with Chorki and eCourier investments.

Investment Process in venture capital

Financial institutions invest their money to the company but venture Capital investment is different

from theirs. This investment done through some processes which is -

❖ Deal Organization

❖ Screening

❖ Evolution

❖ Deal structuring

❖ Post investment activity and exit

Deal Organization-
The company which has a proper management & unique idea, venture Capital search those. They

deal with that Organization which is their first stage financing. First stage is financing of venture

capital they contact a deal with that organization. Deal can be raised in different ways such as

active search system, intermediaries, referral system and among them referral system is a major

source of deal.

Screening-

After dealing with the organization, venture capital screening out the organization based on some

criteria like innovation idea, management team, product, profitability of the market expansion

Capacity which is the second stage of financing process. They also think about the size of

investment, geographical location of that particular company.

Evolution-

After screening the organization venture capital look the company's position relative to other which

is the third stage of financing. Venture capitalists see the market plan of that company about their

effectiveness in this stage. They also evaluate the characteristics of the market, product, and

technology.

Deal structuring-

Deal structuring is important for both the venture capitalist & the company because here both the

party's bargain about the terms and conditions of the agreement which concern the amount, form

and value of the investment also the right of the venture capitalist to control the enterprise. If

needed, the agreement is to change its purchase arrangements, acquisition, initial public offerings

(IPOs), Management.
Post Investment Activities-

When the Agreement has been finalized, the capitalist assumes the role of a collaborator and a

partner also. He is linked in implementing the direction of the commitment.

Exit-

In the exit stage venture capital see how they exit or complete the deal besides they play a positive

role to regulate the company towards exit routes. Some exit routes are like as Initial Public Offering

(IPO), Re-purchase of venture capitalist share, Purchase of venture capitalist share by third party,

Acquisition by another company.

Problems of venture capital financing of Bangladesh.

Many investments are coming every year for the start-up business. Venture capital is needed for

start-up lunch, early development. Investment in a start-up is a challenging task as here have a

high amount of risk for this reason in Bangladesh venture capital is not available as required. We

have many problems in this sector. We have to solve these problems. Venture capital concept is

us origin concept which was started in 1946.

In Bangladesh, venture capital investment has problems from both sides and haven’t enough

investors in Bangladesh for a start-up. On the other hand, who are interested in venture capital

investment, they are not getting a perfect start-up platform for investment. Let's see some problems

in venture capital finance.

Problems:
1. High risk

2. Management problem

3. Equity participation

4. Long time horizon

5. Lack of liquidity

6. Marketing knowledge problem

7. Safety and trust issue

8. Loan problem

9. Lack of training and education

1. High risk:

Investment in a start-up has a high risk for venture capital finance as a start-up project has a huge

risk factor. There can be high profit or loss. Thinking about the risk factor many financers of

Bangladesh didn't feel interested in venture capital finance.

2. Management problem:

In a start-up project, most of the person or company feel management problem because of

experience and proper knowledge. Because of weak management skills, most investors feel

discouraged to invest in a start-up.

3.Equity participation:

Equity participation is another big problem. Shareholders should be a faithful and trustworthy

person for any type of share venture business. In most cases, we can see that there was some

collusion among shareholders. The shareholders should be honest in their words and agreement.

4.Long time horizon:

For a start-up project, investors have to invest for a long time. Both sides have to work with the

patient for a long time as starts up projects need a long time to see a profit. For a start-up project

investors and planners have to work together for a long time.

5.Lack of liquidity:

Lack of liquidity is a common problem for a start-up company and investors as a start-up company

starts from a basic level so that any time there can be a lack of liquidity problem. Most of the case

Bank plays a vital rule in this type of situation.

6.Marketing knowledge problem:

Marketing is the main problem for start-up companies. If anyone wants to run a project heir

marketing knowledge should be good enough. Without marketing no company can go a long way.

Most of the start-up company owners don't know much about marketing skills. As a start-up

company hasn't strong marketing knowledge most of the case so that most of the cases investors

feel that start-up projects are not secure for investment. We should focus on marketing more to

create a start-up business.

7. Safety and trust issue:

Safety and trust issue is another big problem. Start-up company most of the cases cannot give

financial safety as they are starting their project. On the other hand, both sides cannot trust others

though investors and start-up owners both can be benefitted from this type of start-up project. In

the first stage start-up owners cannot give safety it's an almost general thing but from the investor's

side if we want to see the matter we must say they need some security.

8.Loan problem:

A new entrepreneur need lots of documents and paper for Loan and the loan processing time is

very long with very high interest

9.Lack of training and education:

No training and educational subject for entrepreneurship and venture capital.

Recommendations

Though there have high risks in starting up the project at the same time we can say that there have

a huge opportunity to get profit as well. Venture capital financer should invest carefully thinking

about the start-up company and its future. Bangladesh's government should help start-up the

company and financer to build a better Bangladesh. All companies in the world started from the

zero stage so in this sense we can say that the start-up company is the future big company. patho,

Alibaba, Amazon and many other companies were a start-up company in their 1st stage but now

they are a giant company. Nowadays every investor will be agreeing to invest in those companies.

So we can say that if we want to be the owner of a company we have to take a risk as we don't

know what the future of a start-up company is. But all investors should be careful when they will
go for any investments. We identify many problems but all have a solution. I am giving my

proposed solution.

Solution:

1. Convert risk to profit

2. Create a good management skill

3. Be honesty in equity participation

4. Long time horizon but huge profit

5. Make liquidity

6. Gain a better marketing skill

7. Ensure safety and trust.

8. Arrange a flexible loan system

9. Provide education and training

10. Establish a good communication between venture capitalist and entrepreneur.

1. Convert risk to profit:

Every work has some risk. In business, we have to take a risk. Investors have to think that they

have a huge opportunity in a start-up of the project if they can take a proper project. They have to

take that risk thinking about the future profit.

2. Create a good management skill:

Management skills are very important for a start-up company. Gradually all start-up companies

should create good management skills so that venture shareholders will feel safe for their project.

To gain management skills we have to study a lot at the same time we have to focus on the practical

sector.

3. Be honest in equity participation:

Both sides have to be honest in their work as they are working together for a bright future. They

have to maintain equity participation for better business. Honesty and equity will make their

company more strong.

4. Long-time horizon but huge profit:

A start-up business needs a huge time but they have some huge profit as almost a start-up company

is building based on the present situation and thinking about the future. So all most idea is modern.

Both sides have to be patients for their work.

5. Make Liquidity:

From the 1st stage, the company owner has to think about the liquidity thinking about the

company's future. Liquidity is more important to build a permanent future of a company. Both

sides have to help each other to build liquidity.

6. Gain a better marketing skill:

Marketing skills are important in business. Without marketing skills, nobody can create a proper

business. So the Start-up company should focus on marketing skills. They have to hire a good

marker or they have to learn from the book and real field so that investors will feel more attraction.

7. Ensure safety and trust:

Investors want safety from the owners .so tries to give safety as much as possible. Both sides have

to trust each other so that their projects will be able to go a long way.

8. Loan system:

Bangladesh bank need to ensure a loan system for new entrepreneur and make sure the interest is

lower than other.

9.Provide education and training:

Need to start course curriculum for Entrepreneurship development. And arranges number of

professional training for starting a new business and how to get proper loan and fund.

10. Establish a good communication:

Need to establish a good communication between venture capitalist and entrepreneur so that

entrepreneur can know about the venture capital activity well.

Reference:
[1] Schwienbacher, A. (2008). Innovation and Venture Capital Exits. The Economic Journal,

118(533), 1888-1916. Retrieved from www.jstor.org/stable/20485282

[2] Khan, M. Z. H., Chen, S., Khan, M. J. U., & Chowdhury, M. (2017). “Haste Makes Waste”

or “Slow is Smooth, Smooth is Fast”? A Study of Venture Capital’s Future Growth in Bangladesh.

2017 Portland International Conference on Management of Engineering and Technology

(PICMET). Presented at the 2017 Portland International Conference on Management of

Engineering and Technology (PICMET).

[3] Khan, M. Z. H., & Song Chen. (2015). Rain is the best blessing during severe drought: A

venture capital study of Bangladesh. 2015 Portland International Conference on Management of

Engineering and Technology (PICMET). Presented at the 2015 Portland International Conference

on Management of Engineering and Technology (PICMET).

[4] Emil Schram. (1949). Taxation and Venture Capital. The Annals of the American Academy of

Political and Social Science, 266, 85-92. Retrieved from www.jstor.org/stable/1027572