Nepal Startup Funding in 2026: What's Verified, What's Pending, and Where Founders Should Look

Kathmandu's startup scene enters the second half of 2026 with more structured capital options than five years ago, but the picture is uneven. Several headline programs announced in late 2025 and early 2026 have yet to publish detailed operating guidelines, while a handful of angel networks and venture funds have already closed deals this year. Below is a rundown based on publicly available circulars, press releases, and firm disclosures as of early September 2026.

Government‑backed grants: confirmed vs. unconfirmed

The Ministry of Industry, Commerce and Supplies (MoICS) issued a press release on 12 January 2026 stating that the Startup Support Scheme would be "recalibrated for FY 2025/26" with a budget envelope of NPR 500 million. However, the detailed eligibility criteria, application portal, and disbursement timeline have not appeared in the Nepal Gazette or on the ministry's website as of this writing. The last fully documented cycle remains the FY 2024/25 round, which awarded NPR 320 million across 48 ventures according to the MoICS annual report published July 2025.

Nepal Rastra Bank's Innovation Financing Circular (Unified Directive 2025, Amendment 3) took effect on 16 July 2025. It permits Class A, B, and C banks to allocate up to 5% of their total loan portfolio to "innovative startups" at a concessional interest rate capped at base rate plus 2%. The central bank's quarterly banking statistics for Q1 FY 2025/26 (mid-July to mid-October 2025) show NPR 2.1 billion disbursed under this window across 17 banks. No updated circular dated 2026 has been posted on NRB's website.

Separately, the Ministry of Finance's budget speech for FY 2026/27 (delivered 29 May 2026) mentioned a "Startup Seed Fund" of NPR 1 billion to be operated through the Nepal Development Bank. As of early September, no operational guideline or gazette notification has been released. Founders should treat this as announced but not yet actionable.

Angel networks with 2026 deal activity

Nepal Angel Network (NAN)

NAN's website lists three investments closed between January and June 2026: a $75,000 seed round in a Kathmandu-based agritech platform (February), a $120,000 follow-on in a healthtech startup (April), and a $50,000 cheque to an edtech venture (June). The network's managing director, in a LinkedIn post dated 3 July 2026, stated that NAN's 2026 deployment target is $500,000 across 8–10 deals. Typical ticket size remains $50,000–$150,000 for pre‑Series A rounds.

FNCCI Startup Wing

The Federation of Nepalese Chambers of Commerce and Industry's startup wing announced two co‑investments in Q1 2026 alongside Dolma Impact Fund: a logistics SaaS company (NPR 25 million) and a cold‑chain infrastructure play (NPR 18 million). Their 2026 charter, uploaded to the FNCCI portal on 5 February 2026, caps individual angel participation at NPR 10 million per deal and requires at least two wing members to co‑sign.

Other active angels

Individual angels such as Binod Chaudhary (via CG Corp Global's venture arm) and Suraj Vaidya have not disclosed 2026 deals publicly. The Himalayan Startup Angels group, active in 2023–24, has not posted updates since November 2025.

Venture capital firms: fund status and 2026 deployments

Dolma Impact Fund (Fund II)

Dolma's second fund, closed at $75 million in late 2024, deployed $4.2 million across three Nepali companies in H1 2026 per its quarterly LP update dated 15 July 2026 (accessible via the fund's data room). Sector focus: climate‑smart agriculture, renewable energy access, and digital financial services. Average first check: $1–2 million.

Business Oxygen (BO2)

BO2's Fund I ($30 million, vintage 2021) is in harvest mode. The firm's 2026 pipeline page, last updated 22 August 2026, shows zero new commitments since December 2025. They are reportedly raising Fund II but have not filed a prospectus with SEBON.

One to Watch / OTF Ventures

The Dutch‑backed venture builder invested $300,000 in a Nepali femtech startup in March 2026, per a press release on the company's Medium page. Their model remains small‑ticket ($100k–$500k) with hands‑on operational support.

New entrant: Himalayan Capital Ventures

A $15 million early‑stage fund registered with SEBON in October 2025 (registration no. VC/2025/014) made its first two investments in May and July 2026: a B2B marketplace (NPR 35 million) and a fintech compliance tool (NPR 28 million). Managing partner Prakash Pandey confirmed the fund's 2026 target of 6–8 deals in an interview with New Business Age published 10 August 2026.

Regulatory shifts affecting founders

The Industrial Enterprises Act (First Amendment) 2026, authenticated on 18 March 2026 and published in the Nepal Gazette on 25 March 2026, introduces a "startup" definition for the first time: entities incorporated within the last seven years, with annual turnover below NPR 100 million, working on innovation or scalable business models. This definition unlocks the concessional tax regime (5% corporate tax for five years) previously available only to "industries." The amendment also allows 100% foreign equity in startups without prior approval, provided the investment enters through the banking channel and the company obtains a recommendation from MoICS.

SEBON issued a directive on 12 June 2026 (Directive No. 14/2026) simplifying the private placement process for startups raising up to NPR 50 million from accredited investors. The filing fee is waived, and the disclosure document format has been reduced to 12 pages. This applies only to companies meeting the new Industrial Enterprises Act definition.

Practical next steps for founders

If you are raising in the next six months, prioritize conversations with NAN, Himalayan Capital Ventures, and Dolma — they have fresh capital and public 2026 track records. For grant‑seekers, monitor the MoICS website and the Nepal Gazette weekly; the FY 2025/26 Startup Support Scheme guidelines could drop any week, but they have not as of 3 September. The NRB innovation financing window is live today — approach your relationship manager at any Class A bank with a pitch deck and the bank's internal startup evaluation form.

Keep a file of the gazette notices cited above (Industrial Enterprises Act amendment, SEBON Directive 14/2026). Investors and bankers will ask for them. And if a program sounds too good to be true — like a "NPR 1 billion seed fund" with no operating manual — wait for the gazette notification before building your financial model around it.