Defta Partners, an US based venture capital firm, aims to foster the
young entrepreneurs in Bangladesh by providing seed capital to start-up
companies.
“Bangladesh has immense potential to set up new ventures thanks to its high population base and export market opportunities,” said George Hara, group chairman of DEFTA Partners.
“We want to seek out promising ventures here and assist them on their path to success.”
DEFTA Partners yesterday inked an agreement with BD Venture (BDV) at the latter’s office in the capital to co-finance different business ventures in Bangladesh.
In addition to capital funding, the US firm will also offer financial and operational guidance as well as access to a powerful network of strategic alliances for the success of the companies, Hara said.
“We want to bring proven technology here.”
A host of innovative young entrepreneurs fail to start their projects due to financial problem, said Aftab ul Islam, chairman of BDV.
The collaboration with the two will create a new opportunity to develop entrepreneurs in the country, Islam said.
As per the agreement, BD Venture will assist the US firm to select the projects here for joint investment, said Shawkat Hossain, managing director of the Bangladeshi firm.
“Our experts will assess the project idea and will become a partner in the business by investing capital,” he said.
The two firms are mainly looking to invest in: information technology, agriculture and agro-based industries, food processing, renewable energy, health service, education, tourism and light engineering.
The two will also be involved in governance of the companies and assist them in building entrepreneurial and management capacity, said Mamun Rashid, vice president of BDV.
After reaching maturity, venture capital firms generally sell the shares of the companies it invested in back to the entrepreneurs or to a third party via the capital market.
In 1984, Hara founded DEFTA Partners and went on to become one of the most prominent Silicon Valley venture capitalists in telecommunications and technology in the 1980s and 90s.
Competing with Microsoft, Hara has led more than 20 companies, including Borland, PictureTel, SCO, Tradex, and Unify, to dominate the software industry.
Since 2000, Hara has served on the board or helped to manage a number of successful US and European companies, such as Oplus Technologies, which merged with Intel in 2005, Broadware, which merged with Cisco in 2007, and Fortinet, which floated its IPO through NASDAQ in 2009.
DEFTA Partners prefers to invest $0.5 million to $3 million in companies based in the United States, United Kingdom, Japan and emerging countries in Africa, Asia, and Latin America.
The firm is based in San Francisco, California with additional offices in Japan, Israel and United Kingdom.
In 2005, it also invested in BracNet, a leading ISP-internet service provider in Bangladesh.
Mutual Trust Bank, National Bank, Green Delta Insurance, Bangladesh General Insurance, LankaBangla Finance, DataEdge, Asia Pacific General Insurance, MIDAS Financing and IPE Capital hold a combined 80 percent stake in BDV.
The remaining 20 percent is owned by renowned professionals, bankers and businessmen.
The country has tremendous potential for venture capital firms as it has so far one such firm, whereas the number is around 22,000 in India and nearly 2,000 in Sri Lanka, said Md Sabur Khan, president of Dhaka Chamber of Commerce and Industry.
The government should enact the necessary rules and regulations for venture capital firms, as no such rule is now present in Bangladesh, Khan said.
“Bangladesh has immense potential to set up new ventures thanks to its high population base and export market opportunities,” said George Hara, group chairman of DEFTA Partners.
“We want to seek out promising ventures here and assist them on their path to success.”
DEFTA Partners yesterday inked an agreement with BD Venture (BDV) at the latter’s office in the capital to co-finance different business ventures in Bangladesh.
In addition to capital funding, the US firm will also offer financial and operational guidance as well as access to a powerful network of strategic alliances for the success of the companies, Hara said.
“We want to bring proven technology here.”
A host of innovative young entrepreneurs fail to start their projects due to financial problem, said Aftab ul Islam, chairman of BDV.
The collaboration with the two will create a new opportunity to develop entrepreneurs in the country, Islam said.
As per the agreement, BD Venture will assist the US firm to select the projects here for joint investment, said Shawkat Hossain, managing director of the Bangladeshi firm.
“Our experts will assess the project idea and will become a partner in the business by investing capital,” he said.
The two firms are mainly looking to invest in: information technology, agriculture and agro-based industries, food processing, renewable energy, health service, education, tourism and light engineering.
The two will also be involved in governance of the companies and assist them in building entrepreneurial and management capacity, said Mamun Rashid, vice president of BDV.
After reaching maturity, venture capital firms generally sell the shares of the companies it invested in back to the entrepreneurs or to a third party via the capital market.
In 1984, Hara founded DEFTA Partners and went on to become one of the most prominent Silicon Valley venture capitalists in telecommunications and technology in the 1980s and 90s.
Competing with Microsoft, Hara has led more than 20 companies, including Borland, PictureTel, SCO, Tradex, and Unify, to dominate the software industry.
Since 2000, Hara has served on the board or helped to manage a number of successful US and European companies, such as Oplus Technologies, which merged with Intel in 2005, Broadware, which merged with Cisco in 2007, and Fortinet, which floated its IPO through NASDAQ in 2009.
DEFTA Partners prefers to invest $0.5 million to $3 million in companies based in the United States, United Kingdom, Japan and emerging countries in Africa, Asia, and Latin America.
The firm is based in San Francisco, California with additional offices in Japan, Israel and United Kingdom.
In 2005, it also invested in BracNet, a leading ISP-internet service provider in Bangladesh.
Mutual Trust Bank, National Bank, Green Delta Insurance, Bangladesh General Insurance, LankaBangla Finance, DataEdge, Asia Pacific General Insurance, MIDAS Financing and IPE Capital hold a combined 80 percent stake in BDV.
The remaining 20 percent is owned by renowned professionals, bankers and businessmen.
The country has tremendous potential for venture capital firms as it has so far one such firm, whereas the number is around 22,000 in India and nearly 2,000 in Sri Lanka, said Md Sabur Khan, president of Dhaka Chamber of Commerce and Industry.
The government should enact the necessary rules and regulations for venture capital firms, as no such rule is now present in Bangladesh, Khan said.
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