Sri Lanka's HLAB venture fund targets $9.06M to scale local startups
What's the deal? Startup incubator Hatch, the Lankan Angel Network, and BOV CapitalDealroom has a profile for this one. Try Dealroom → have launched HLAB, a venture fund targeting LKR 3 billion (roughly $9.06 million) to back early and growth-stage companies incorporated in Sri Lanka. First Capital HoldingsDealroom has a profile for this one. Try Dealroom → has committed LKR 300 million — 10% of the target — as anchor limited partner. The launch was announced at the final event of First Capital Startup Nation by Hatch.
What's the endgame? HLAB aims to help founders move past the early stage by funding stronger operations, market expansion, and new opportunities. BOV Capital, the fund manager, points to past exits as its pitch: nCingaDealroom has a profile for this one. Try Dealroom → sold to Singapore's Zilingo in 2019, and Insureme.lk listed on the Colombo Stock Exchange in December 2025.
Why now? Local early-stage capital remains scarce in Sri Lanka, and the government is backing the sector through its Digital Strategy 2030, which targets a $15 billion digital economy. "We need to keep building the environment that helps them turn that ambition into reality," said Hatch co-founder Jeevan Gnanam.
What could go wrong? The LKR 3 billion figure is a target, not money raised. First Capital's LKR 300 million is one-tenth of the pool; the balance is not yet confirmed as committed. The announcement is a fundraising plan, not evidence that the full sum is available.
The signal: HLAB reflects slow-building investor infrastructure in Sri Lanka rather than a wave of large deals. Singapore-licensed nVenturesDealroom has a profile for this one. Try Dealroom → says it has channelled more than $1.5 million into local ventures and is raising a second fund, while Hatch's 2026 programme drew more than 250 regional applications. Whether HLAB matters will depend on closing its target and making investments.
Read more: lankabusinessnews.com
Image credit: Tim Dorr
