Laying the Foundations for a Venture Capital Framework in a Frontier Economy
Bhutan has the vision. It has the talent. It even has a globally respected brand built on Gross National Happiness. But one piece is still missing if local entrepreneurs are to scale their ventures and compete globally: a viable venture capital (VC) ecosystem.
At present, Bhutan is considered a frontier market with few channels for early- and growth-stage funding. There is no formal VC regulatory framework, due diligence is inconsistent, and most startup founders lack the mentorship and investor-readiness required to attract international funding. That’s where Blue Poppy Ventures steps in, working with Bhutanese stakeholders to design a framework that connects founders with capital—without compromising the country’s values or economic direction.
It’s not that there aren’t investors willing to support Bhutanese entrepreneurs. In fact, during discussions held around the Bhutan Innovation Forum, investors repeatedly expressed interest in backing sustainable, values-aligned ventures. What’s holding them back is the absence of a clear system to do so. Current FDI processes can take 6 to 12 months, and lack of clarity around exit options, currency exchange limitations, and policy settings further deter meaningful investment.
At a recent stakeholder roundtable hosted by Blue Poppy Ventures, participants from government, the private sector, and the entrepreneurial ecosystem came together to map out a way forward. The key message: if Bhutan wants to see its first unicorn—a startup valued at over $1 billion—it needs to streamline the road from startup to scaleup.
One outcome of the discussion is the development of a concept paper for a Bhutan VC Framework. The proposed system includes a mix of public-private structures, acceleration pathways, investor protections, and governance aligned to Bhutan’s emerging regulatory environment. Inspiration is being drawn from successful VC ecosystems around the world, including Indonesia, Norway, and even Saudi Arabia’s VC500 initiative.
At the heart of the proposal is the idea of making capital flow more accessible and structured. This means clearly defining types of investments (seed, Series A, Series B), establishing terms for equity and returns, and involving the Bhutan Stock Exchange and Central Bank where relevant. Legal frameworks will need updating, and a sandbox or accelerator model could allow startups to pilot business ideas while gaining coaching, deal room experience, and exposure to global best practices.
Blue Poppy Ventures is also supporting initiatives that focus on building capability within the startup community—teaching founders how to pitch, how to present financials, and how to structure their companies for growth. These soft skills are just as critical as regulatory changes when it comes to unlocking capital.
There’s already a vibrant entrepreneurial base in Bhutan, with more than 600 businesses listed on CSI Market and nearly 300 supported by the Loden Foundation. What’s missing is the connective tissue that turns these businesses into investment-ready companies—funds that can back them, mentors that can guide them, and systems that can scale them.
Bhutan doesn’t need to follow Silicon Valley’s playbook. Instead, it has the opportunity to craft a uniquely Bhutanese model—one that prioritises sustainability, social return, and long-term thinking alongside commercial success. The goal isn’t to chase hype; it’s to build real, resilient companies that uplift communities, create jobs, and contribute to Bhutan’s 2030 vision of becoming a high-income country.
With the right partnerships and frameworks in place, Bhutan absolutely can build its own unicorn. And it might just become a global case study in how purpose-driven investing can create lasting value in frontier markets.
Interested in contributing to the Bhutan VC Framework or supporting local startups? Reach out to wendy@wendyperry.com.au to learn more.