Frequently Asked Questions



 

• Reach out to us at hmasud@idlc.com
• Leave your email address/phone number/other required information.
• Members of our investment team will reach out to you to schedule a call/meeting to discuss the fund and answer any queries you may have
• You can review the fund’s pitchbook and all other constitutive documents
• To invest, the investor will fill out an application form and sign a Unit Subscription Agreement with the Fund Manager
• Our investment team will guide investors throughout the process, and provide guidance regarding the documents
• Once the Agreement is signed, Fund Manager will periodically call capital from the investors commitment and invest in suitable companies
• For any money invested, the investor will receive unit certificates as proof of ownership in the fund
• When the Fund exits from an investment, any money (net of fees) is returned to the investor.

 

IDLC Venture Capital Fund I is governed by Bangladesh Securities and Exchange Commission (Alternative Investment) Rules, 2015. As per the rules, only eligible investors may invest in the Fund. An eligible investor is any one of the below:

 

§ A registered local of foreign fund manager
§ A company incorporated in Bangladesh or abroad
§ or a statutory body or a local government authority 
§ a bank
§ a financial institution
§ an insurance company
§ a merchant banker
§ A stock dealer
§ an asset manager
§ an alternative investment fund managed by another fund manager
§ a registered pension fund
§ a registered provident fund
§ a registered trust fund
§ a registered super annuation fund
§ a foreign fund
§ a foreign individual
§ a high net worth resident or non-resident Bangladeshi individual; [“high net worth individual” or “HNI” means a natural person having minimum net worth of taka 20 (twenty) million certified by the concerned tax authority
• For individuals: BDT 5 million
• For Institutions: BDT 20 million

Yes, all units purchased by the investor will have a lock-in of 3 years from the date of issuance of the certificates.

§ The units of the fund are not redeemable by the investor.
§ Fund Manager may choose to redeem units of the fund from time to time.
§ Once the lock-in period of 3 years is over for a respective unit of the fund, investor may sell that particular unit to another eligible investor, subject to Trustee and Fund Manager’s approval
§ Any disbursements made out of the Fund to the investors shall be in the form of Cash Dividends.
§ As such, appropriate dividend tax rates are applicable for all investors

Following an investment in the Fund, investors will receive the following reports:

 

 Name of Report

 Frequency

 Audited Annual Report of the Fund

 Annual

 Balance Sheet of the Fund (stating details of investments including costs and realized values)

 Annual

 Income Statement of The Fund

 Annual

 Cash Flow Statement of the Fund

 Annual

 Auditors’ report to the investors on the accounts including comments on the investments made by the fund

 Annual

 Statement of movement in NAV per unit of the fund

 Annual

 Additional Report providing details on investments and risks of the Fund

 Annual

 Half yearly unaudited financial statements and report of the fund

 Semi-Annual

§ IDLC Venture Capital Fund has a tenure of 7 years.
§ After 7 years, the tenure may be extended for up to 2 years, subject to approval of 2/3rds of the unit holders of the fund, based upon the volume of their investments in the fund
§ IDLC Venture Capital Fund I will invest in early stage disruptive companies providing tech-enabled solutions.These investments, by their  nature, are illiquid.
§ Throughout its life, the Fund will look for suitable opportunities to exit from its investments through secondary sales or IPO.
§ Once the Fund exits from an investment, any money (net of fees) will be disbursed to the investors in the form of cash dividends. The Fund will not reinvest the returns it generates by exiting from non-listed companies.

 

 • Through signing the Unit Subscription Agreement, investor makes a commitment to invest in the fund
 • The fund immediately collects 5-10% of the money committed by the investor.
 • Investor can choose to deposit the remaining commitment at IDLC as Term Deposits.
 • The fund continually looks for suitable investment opportunities. When the Fund finds an investment, it will call part or all of the remaining commitments from all investors. This is called a “Capital Call”
 • Periodic capital calls will happen until the entire fund has been invested.
 • When the Fund exits from an investment, any money (net of fees) is returned to the investor.

 

§ We are a Bangladesh focused Venture Capital Fund investing in early stage disruptive startups in Bangladesh.

§ The Fund size is BDT 450 million

§ Our average ticket size is BDT 10 to BDT 40 million. However, we are flexible if exceptional opportunities are available.

§ We invest across several stages – Post Seed to Series A and beyond.

§ We are ok being the lead investor in a round. We are also comfortable collaborating with co-investors as part of a funding round.

§ We are sector agnostic. However, we are particularly interested in the following sectors – Fintech, Entertainment and Lifestyle, Enterprise Solutions, Travel and Logistics, Foodtech and Agritech, Internet Devices, Edu-Tech, and Core Technologies.

§If you have a company that fulfills the following criterias, we’d love to hear from you:
§Your primary customer base is in Bangladesh
§You have an MVP with 6 months of solid traction
§You are providing a disruptive, technology enabled solution to an existing problem faced by consumers and/or businesses
§To get in touch, please fill in the following details. Our investment team will reach out and discuss further!
§Name of the company
§Line of business
§Basic description of the company
§Profile of the founders – Name, Previous Work Experience (if applicable), Education, Role in the company
§Email and Phone Number of one of the co-founders