This is a guest post by Richard Armstrong who is an early stage investor in many startups in both SE Asia and globally. Plus Richard has cofounded several companies.
Guest Post Series: Richard Armstrong
The Youthful Advantage: A Demographic Dividend
One of the most striking features of frontier markets, particularly in countries like Bangladesh, is the demographic structure. In Bangladesh, approximately 70-80% of the population is under the age of 25.
This youthful demographic represents a significant potential for growth and development. Young populations are often more adaptable, tech-savvy, and open to innovation, making them a driving force in the modern economy.
Bangladesh’s GDP: A Story of Surpassing Expectations
Bangladesh’s economic growth in recent years has been pretty impressive. The country’s Gross Domestic Product (GDP) has surpassed most other countries in the region.
It is due to a number of factors like industrial development, a rise in exports, and significant improvements in sectors like textile and garment manufacturing.
Bangladesh, traditionally known for its textile and garment industry, is witnessing a remarkable transformation. In recent years, the country has become a burgeoning hub for technology startups, driven by its young, tech-savvy population and a rapidly growing digital infrastructure.
Key Factors Driving Tech Startups
Several factors are contributing to the boom in tech startups in Bangladesh:
Young Demographics: With a large portion of the population being young and tech-savvy, there is a growing demand for digital services.
More active investors: The number of VC’s and angels active in Bangladesh has increased a lot in the last couple of years
Supportive Government Policies: Initiatives like startup incubators and incentives for IT ventures are encouraging entrepreneurship.
Increasing Investment: Both local and foreign investments in the tech sector are on the rise.
Success Stories and Emerging Sectors
Some Bangladeshi startups have gained significant attention, both locally and internationally:
FinTech (eg. bKash, ShopUp): Companies offering digital financial solutions are gaining traction, especially in a country where a large portion of the population is unbanked.
E-commerce (eg. Swap, Deligram): Online marketplaces and delivery services are booming, fueled by the growing middle class and urbanization.
EdTech (eg. Shikho): Startups focusing on education technology are addressing the need for accessible and quality education.
HealthTech (eg. Praava Health, Maya): Digital health services are emerging, offering telemedicine and health information systems.
The Future of Tech Startups in Bangladesh
The future of tech startups in Bangladesh looks promising. As you can see in the chart above the number of deals has picked up immensely. And the sizes of the deals is getting much larger.
By the end of 2022 there were already over 1,200 active startups in the country and 127 were funded. That is a very good ratio.
So in the coming years I think we will see more and more of these startups begin to blossom into terrific success stories. And I really look forward to that and plan to contribute to this growth story.
Bangladesh’s Youthful Advantage Fuels Tech Startup Boom
