For a decade start-ups in Sri Lanka have been challenged with funding. Because Sri Lanka’s
economic development took a difficult route in the decade leading up to the war’s end risk capital was difficult to attract. Most firms here struggled in their chronically undercapitalized state. Because interest rates were high bank loans were generally unaffordable and the risk averse venture capital industry didn’t fund enough star companies.
Young start-ups today are luckier. For those who are passionate, have potentially scalable ideas and willing to implement good governance, there are a number of avenues to raise equity capital.
The syndicate Lankan Angel Network is the most visible one, but there are others too. Early stage funding – the type which angels provide – has advantages when the funders themselves are prepared
to roll up their sleeves to help. More than the wealth the enthusiasm and the knowledge angels contribute has proved to be valuable.
We also feature some of what we think are Sri Lanka’s most exciting technology start-ups. The ones we have featured are not contract software developers but firms bold enough to build their own products and market them. They are essentially research firms that are creating intellectual property. The level of excitement and activity in the tech space has jumped higher by many notches.