Bangladeshi hi-tech start-ups and SME entrepreneurs can now receive funding from local and foreign investors by pitching their ideas and enterprises on a platform of the Shenzhen Stock Exchange (SZSE).
The Bangladesh window of the V-Next platform of the SZSE was launched in Bangladesh on May 6 under a strategic investment agreement between the Dhaka Stock Exchange (DSE) and its strategic partner, formed by the SZSE and the Shanghai stock exchanges.
Today, the platform will be presented to investors and entrepreneurs at a programme at the InterContinental Dhaka hotel. The DSE is the chief strategic partner of the V-Next platform in the country.
The entrepreneurs will showcase their ideas and enterprises on the platform and the investors will make investment decision by analysing potential, said Abdul Matin Patwary, acting managing director of the DSE.
“This is an excellent system for new entrepreneurs to get finance,” he said, adding that the platform would facilitate auto-matchmaking.
There are more than 16,000 institutional investors from 39 countries registered on the V-Next. The match-making is algorithm-based and carried out automatically on the basis of pre-defined parameters.
More than 1,100 companies have already raised about $5 billion using the platform.
The window will facilitate the country’s listed and non-listed companies to explore equity and strategic partnership, seek business collaboration, and diversify business and technology channels in China, officials said.
The DSE has another platform for SME entrepreneurs, named DSE SME, where entrepreneurs need to be listed to raise funds, but V-Next will allow them to mobilise funds without being listed.
The new platform has not set any mandatory paid-up capital limit as listing requirement. But in order to get listed on the DSE SME, a company needs to have a minimum paid-up capital of Tk 5 crore.
Entities such as auditors and merchant bankers will ensure the authenticity of the data of entrepreneurs, so the decision-making for investors will be a lot easier, Patwary said. In order to get entry to the platform, both entrepreneurs and investors will have to be registered. However, no fees will be levied until a successful lending or borrowing takes place.
Enterprises that are registered can publish their financing requirement for specific projects on the platform, and also highlight their demands in various forms, including video, graphics and text.