Calling All Student Entrepreneurs: Tell Us About Your Startup

Do Local VC Firms Offer Stringent Term-sheets And Valuation To Startups In Dhaka

|
Jul 11, 2018
Shawkat Hossain of BD Venture speaking at FSindex launch event
Shawkat Hossain of BD Venture speaking at FSindex launch event

BD Venture Limited founding Managing Director Shawkat Hossain explains the common complaints whether an imbalance exists between VC and founder relationship in Dhaka.

Enter Shawkat Hossain:

I don’t think this sort of complaints is unique to Bangladesh market. Even in mature markets, VC investors keep a conservative attitude during valuation. So, an expectation gap always looms around between the entrepreneur and the investor. I don’t think this is an intrinsically a bad thing.

This is a business and as a party, in the game, VCs will always try to get more for themselves. That should be the logical way of it.

In the context of Bangladesh, another reason for the expectation gap is a lack of business acumen on the part of the entrepreneurs. The future projections of income and expenditure they come up with often don’t match with the reality.

If we are to get the expected return on our investment, the supporting performance predictions definitely need to be authentic and realistic. Otherwise, how can we hope to keep our own performance up to the mark as VC firms? We also raise funds from investors and have to maintain accountability, do we not?

What I hope is that as the market matures, the gap reduces. In this business, both VC and entrepreneurs are interdependent partners. If entrepreneurs don’t succeed, VCs have no business. While there is a competitive dynamics in this relationship, it is purely because of business. The goal for both parties is same – making the business a success.


Register to read this article in full and more insight articles!

By registering, you will be signed-up for an account which gives you access to our premium stories published a few times a week and archives of all our premium stories. You will also receive a daily newsletter sent to your inbox. To unsubscribe, please visit the profile section in your account. We have a strong privacy policy. We will never share or sell your data to anyone.

What you get
In-depth actionable analysis

In-depth analysis on startup, business and technology scene in Bangladesh that you would not find anywhere else.
Daily and weekly newsletter
Get our daily and weekly newsletter with our most important stories directly to your inbox.
Join the conversion on this article and more on our public Telegram Group

About FS

Contact Us

Shares