The largest financial institution IDLC launches its first venture capital fund—“IDLC Venture Capital Fund” in an event at Hotel Intercontinental Dhaka on Tuesday. The launching event was graced by Honorable Member of Parliament & State Minister of Information and Technology Division, Government of the People’s Republic of Bangladesh, Zunaid Ahmed Palak & the MD & CEO of IDLC Finance Limited, Arif Khan, along with high officials of IDLC & distinguished guests.
The Size of IDLC Venture Capital Fund is BDT 450 million, with a tenure of 7 years. Through this fund, IDLC plans to make investments in early-stage companies which are providing technology-enabled solutions to the consumers and businesses of Bangladesh. The fund will focus on certain sectors such as Financial Technology, Entertainment and Lifestyle, Enterprise Solutions, Travel and Logistics, Core Technologies, Education Technologies, Food Technologies, Agricultural Technologies, and Internet Devices.
The fund is governed by Bangladesh Securities and Exchange Commission (Alternative Investment) Rules, 2015, and is open to eligible investors. Individual investors can invest with a minimum ticket size of BDT 5 Million, and Institutional investors can invest with a minimum ticket size of BDT 20 Million. The objective of IDLC Venture Capital Fund is to provide investors with risk-adjusted returns through investing in, nurturing, and then exiting from early-stage companies. The fund will provide investors with an investment vehicle that is diversified from the usual investment vehicles in Bangladesh.
Arif Khan, the CEO & MD of IDLC Finance Limited said “We see very strong growth of technology-based startups, and a great opportunity to support these startups as a robust eco-system is being established under the direct patronage of the government. We believe that this will be a great opportunity for the investor community to participate in along with IDLC Finance Limited to boost this sector as well as generate a substantial return for all stakeholders”.
This fund will be managed by IDLC Asset Management Limited which is a wholly-owned subsidiary of IDLC Finance Limited.