Bhutanese entrepreneurs and businesses will benefit from equity financing as the government moves to foster a dynamic startup and innovation ecosystem. In line with its commitment of USD 100 M, the government will soon sign an agreement with a globally renowned venture capital firm. The Minister for Industry, Commerce, and Employment said that an open, accessible, and transparent application process will then be rolled out soon.
It is a 50:50 equity-based partnership between the government and the firm.
The Global Bhutan Entrepreneurship Corridor Fund or GBEC Fund will put money as shares into the capital of each entrepreneurs’ company which qualifies for the scheme. The fund will be managed by the firm, leveraging its global expertise in start-up financing, while the government will be the owner of the GBEC fund.
The minister said, “The partner investing in this venture is confident in Bhutan’s potential to strengthen entrepreneurship and start-ups. Therefore, after endorsing agreements with the firm in a month, we are excited to launch this program.”
It is designed to support start-ups and businesses through investment and capacity-building support.
However, the details of the firm will be shared once the agreement is finalized.
The minister said, “Venture capital firms help entrepreneurs expand their businesses not just domestically but also globally. Similarly, with the right system in place, investments in Bhutan’s service and product innovations could be scaled internationally.”
The process to access this fund will start with world-class entrepreneurship training for start-ups. Next, a selected group of start-ups with growth potential will receive funding, where they will get mentorship and support to scale up their business for larger commercial operations.
The Bhutanese start-ups operating locally or globally will be eligible for the Fund. The assessment will focus on innovation, market potential, scalability, and financial viability.
Meanwhile, regular monitoring will be done to ensure transparency and accountability in the use of the fund.
A digital application and outreach platform will be launched to ensure broad participation.
Kinzang Lhadon
Edited by Tandin Phuntsho
