Experts suggest that collaboration between the financial sector and venture capital firms is vital to support tech startups in Bangladesh, which often struggle to secure bank loans due to their longer return timelines and initial losses. Despite Bangladesh Bank’s directive for banks to allocate funds for startups, access to such financing remains limited. Venture capital firms, with their expertise, could facilitate loans to startups from banks, ensuring flexible terms for long-term returns. The reluctance of banks to lend to small tech firms based on intangible assets exacerbates the challenge. The looming expiration of tax exemptions for the IT sector raises concerns about reduced investment and hindered growth, potentially impacting job creation.
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