To bolster the startup and entrepreneur ecosystem, the government has launched a USD 100 million venture capital fund to support emerging businesses and entrepreneurs. The initiative was revealed by the Minister for Industry, Commerce, and Employment, Namgyal Dorji, during the launch of the 21st Century Economic Roadmap.
“In the era of economic growth, the government has planned strategies, and since today is an auspicious day for all Bhutanese citizens, I would like to announce an important initiative taken by the government. For an economy to grow, new startups and entrepreneurship ideas should be supported, and for that reason, the government is allocating USD 100 million for entrepreneurship and startup businesses,” said Lyonpo Namgyal Dorji.
The Economic Roadmap aims to create an enabling environment for private-sector growth, with a particular focus on financial accessibility. A key aspect of this strategy is improving access to funding for startups, as many entrepreneurs face challenges in securing loans due to high-interest rates and the reluctance of banks to lend to new businesses.
An official associated with the roadmap emphasized that the USD 100 million fund will be one of the first ventures under the initiative, addressing the financial bottlenecks faced by startups and high-potential businesses.
The fund will be managed through a public-private partnership, with the government contributing USD 50 million and an international venture capital firm providing the remaining half. The government plans to onboard a professional venture capital partner, leveraging global expertise to ensure the fund’s success.
Prospective partner firms include those that participated in the Bhutan Innovation Forum, as well as contacts established during the Prime Minister’s recent visits to Davos and Saudi Arabia.
The venture capital firm will not only provide financial backing but will also offer mentorship, boot camps, and business acceleration programs to help startups scale up. The ultimate goal is to identify and support businesses with the potential to expand beyond Bhutan’s borders and, in the long run, create the country’s first unicorn—a billion-dollar startup.
Additionally, the selected venture capital firm will facilitate international market connections, enabling Bhutanese startups to access global opportunities. To ensure the fund’s effectiveness, the government plans to introduce new financial regulations tailored to venture capital investments.
The USD 100 million venture capital fund marks a significant shift in Bhutan’s approach to entrepreneurship and economic growth. By fostering innovation, providing crucial financial support, and integrating Bhutanese startups into the global economy, the initiative is expected to drive long-term economic transformation.
With this initiative, Bhutan positions itself as an emerging player in the regional startup ecosystem, signaling strong government support for innovation-driven economic growth.
