Startup ecosystem efficiency: Bangladesh's rank improves four notches to 79th

Bangladesh has improved by four notches to reach the 79th position on a global list that ranked 100 countries based on their startup ecosystem efficiency.

Among South Asian nations, Bangladesh retains its fourth place for the fifth consecutive year, said the report titled "Global Startup Ecosystem Index 2025".

Despite the improvement, local stakeholders have said Bangladesh's position is much better than it is portrayed on the list.

Research organisation StartupBlink recently revealed the global report which also ranked more than 1,000 cities.

According to the report, Dhaka slid by 15 spots to the 155th place after two consecutive years of climbing on the index.

In South Asia, Dhaka holds steady in the 8th place for the second year.

Bangladeshi startups received S$ 40.3 million in total funding in 2024, said the report.

According to it, Bangladesh boasts a young, tech-savvy population and ICT technology in areas such as digital commerce, education, and healthcare.

"Bangladesh's national startup ecosystem is a potential digital treasure in Asia that requires systematic country-level branding to attract more foreign investments and generate exposure," it said.

However, the ecosystem is not without its challenges, it also said.

The lack of access to high-speed internet outside major cities, limited access to funding, complex regulations, and limited global exposure are blockages to the ecosystem that are preventing it from achieving its full potential.

However, several experts and startup founders have questioned the findings of the report as they believe it does not truly represent Bangladesh's position.

Contacted, Rahat Ahmed, New York-based investment firm Anchorless Bangladesh's founder and managing partner, said Bangladesh's startup landscape may not be perfect, but it is unquestionably ahead of several countries ranked above it.

"Bangladesh may not be among the top 40 startup ecosystems yet, but ranking it 79th - behind countries like Cape Verde, a small island nation of just 500,000 people and having a fraction of our GDP - raises serious questions," he said.

He also said according to data available with reliable platforms like Crunchbase, Cape Verde has no recorded startups that have raised funding. "How does that justify placing it ahead of Bangladesh?"

Cape Verde was positioned at 75th in the report.

Seasoned investors understand the limitations of global rankings like this, said Ahmed, adding that it is nearly impossible for any single organisation to accurately map and evaluate every country's startup landscape.

"That is why it is critical that we do not allow reports like these to undermine the real progress our ecosystem has made," he added.

Bijon Islam, co-founder and CEO of LightCastle Partners, a research organisation that closely works with startups, said Bangladesh's startup ecosystem has attracted over $1.0 billion in investments over the past decade-a clear signal of growing investor confidence.

Bangladesh's ecosystem is vibrant, competitive, and far from obscure, as suggested in the recent StartupBlink report, he said.

Being ranked behind Cape Verde and grouped with Mongolia does not reflect the depth or potential of Bangladesh's ecosystem, he said, adding," With more robust data and a closer look, we believe Bangladesh would rank significantly higher."

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