Discussants at a conference made the suggestions of forming a separate board in the bourses along with ensuring support of the regulatory bodies concerned to facilitate growth of the country's startups.
Their suggestions came at the conference titled 'Capital Market of Bangladesh: prospects and opportunities for tech startups and growth stage companies'.
The Dhaka Stock Exchange (DSE) and Startup Bangladesh Ltd jointly organised the conference on the DSE premises in the capital's Nikunja area on Thursday.
State Minister for Information and Communication Technology Zunaid Ahmed Palak, MP, attended the conference as the chief guest. Bangladesh Securities and Exchange Commission (BSEC) Chairman Prof. Shibli Rubayat-Ul-Islam was the special guest.
"The country's capital market can play a vital role to facilitate financing of the startups. The startups can collect funds from the capital market," said the state minister.
The startups have received foreign investments worth Tk 750 million in last five years, as there is a huge prospect for such companies.
While speaking on the government's support for the startups, Mr. Palak noted that the startups would get equity investments worth Tk 5.0 billion by 2025.
"Equity investments to be made by the government will be a new financing mechanism to help growth of the startups."
The startups that would fail to establish business need not bear the burden of debt.
The state minister also said some 10 per cent startups succeed across the world and their returns overtop the loss of the remaining 90 per cent failed companies.
"Some 2,500 startups among 7,500 such firms have become successful in Bangladesh and those have created 1.5 million jobs."
Mr. Palak mentioned that the securities regulator would be offered technical support worth US$7-10 million to enhance its technical capacity in a bid to emerge as a leading stock market regulator across the world.
The BSEC chairman said the securities regulator would consider formation of a separate board for startups to facilitate their growth through raising fund from the capital market.
"We agree with the suggestion of forming a separate board for the startups in the stock exchanges. We want to work on it."
Presently, there are three boards in the stock exchanges, which are main board, alternative trading board, and SME board.
Prof. Islam opined that the startups could not keep pace with the existing boards.
"After certain developments, the startups can be listed with the SME board or the main board."
The securities regulator needs to look after the investors' interest while allowing a company to raise fund from the capital market, he added.
BSEC Commissioner Dr. Shaikh Shamsuddin Ahmed said their door is always open for the startups.
"We want to hear problems of the startups with importance and solve those problems," he added.
Top officials of the country's leading startups attended the conference. A memorandum of understanding (MoU) was signed between the DSE and Startup Bangladesh Ltd to ease financing process for the startups.
