30th January 2025, Kathmandu
Nabil Bank’s Senior Deputy Chief Executive Officer (DCEO), Manoj Gyawali, spoke at the Nepal Startup and SME Conference, where he discussed the challenges startups face in securing bank investments.
Startup Funding Nepal Challenges
He explained that banks are reluctant to invest in startups, especially in their early stages, because of the high risks of failure.
Global Startup Failure Rates
Gyawali pointed out that globally, 90% to 95% of startups fail, making them unattractive for banks looking for secure investments. Banks, according to Gyawali, avoid taking risks on businesses that could collapse early on. He stressed that startups need to seek alternative funding options outside of traditional banking sources.
Government Resources and Venture Capital
Gyawali encouraged entrepreneurs to look for funding from government sources or venture capitalists rather than banks. He explained that startups should first rely on their savings to fund their ventures. If personal funds aren’t enough, borrowing from family and friends could be an option. In cases where that also falls short, venture capital can provide much-needed support. If all else fails, Gyawali suggested that government resources could help fund the business.
Growth and Bank Interest
Gyawali assured that once a startup grows and begins to show promise, banks will likely take notice and invest. He believes that with continued growth and perseverance, banks will eventually become interested in supporting startups financially.
Conference Focus on Economic Transformation
The Nepal Startup and SME Conference, organized by the Nepali Congress Department of Entrepreneurship and Small & Medium Business Development, serves as a platform for discussing the role of innovation and entrepreneurship in Nepal’s economic transformation. Gyawali’s remarks were part of a larger discussion on how startups and small businesses can drive economic change in Nepal.
Optimism for Future Growth
Despite the funding hurdles, Gyawali remains optimistic about Nepal’s startup ecosystem. He encouraged entrepreneurs to be resourceful and persistent in securing the funds they need to grow their businesses.
For more: Startup Funding Nepal Challenges
