EDF Launches EcoBoost Investment Track for Cambodian Digital Startups

PHNOM PENH – The Entrepreneurship Development Fund (EDF) has launched the second cohort of its Startup Investment Package Program (SIPP) through the EcoBoost Investment Track (EIT), an initiative aimed at improving access to equity investment for Cambodian startups and digital small and medium-sized enterprises (SMEs) while strengthening domestic value chains and supporting the country's digital economy.

EDF, a government trust fund established to promote entrepreneurship, innovation and economic diversification in Cambodia, said the second cohort builds on the implementation and lessons learned from SIPP Cohort 1 in 2025. The new programme places greater emphasis on supporting Cambodia's digital economy and expanding domestic value chain development.

The initiative forms part of the EcoBoost Economic Growth Initiative 2026–2028, which designates EDF as the institution responsible for providing seed funding to digital marketplace-focused startups. Through the programme, EDF aims to improve access to equity investment for high-potential startups and digital SMEs while encouraging stronger integration of Cambodian products, suppliers and services into the country's growing digital commerce ecosystem.

According to EDF, Cambodia's digital economy continues to expand, with e-commerce becoming an increasingly important driver of economic growth. However, the fund noted that a significant share of goods traded through digital marketplaces remains imported, limiting opportunities for domestic value creation. SIPP Cohort 2: EIT seeks to address this challenge by supporting businesses that demonstrate credible local sourcing practices and a clear commitment to strengthening domestic supplier networks over time.

The programme also complements the National Strategy on Startup Development 2026–2030, launched on Aug. 11, 2026, which identifies digital innovation, startup growth and ecosystem development as key priorities in Cambodia's economic diversification agenda.

SIPP Cohort 2: EIT targets Cambodian-registered e-commerce startups and digital SMEs that generate revenue through digital platforms. Rather than applying a fixed local content requirement, applicants will be assessed using a two-tier Local Sourcing Utilization Framework that considers both existing local sourcing practices and realistic plans to increase procurement from Cambodian suppliers as their businesses grow. EDF said the approach is designed to encourage continuous progress toward stronger domestic value chains while allowing promising companies with growth potential to participate.

Under the programme, EDF expects to screen about 20 applications before shortlisting 10 to 12 startups and SMEs for detailed evaluation. Around six to 10 businesses will proceed to due diligence, while at least two companies are expected to receive EDF equity investment, subject to valuation, due diligence and approval by the EDF Investment Committee. Portfolio management and advisory support will begin following investment disbursement to strengthen governance, improve business operations and support long-term growth.

EDF said many startups and digital SMEs have already validated their business models and gained early market traction but continue to face financing constraints as they scale. Common challenges include securing additional working capital, investing in digital systems and regulatory compliance, onboarding suppliers, and managing the operational costs associated with shifting from import-based sourcing to greater local procurement. The programme aims to help businesses overcome these barriers while contributing to Cambodia's broader economic transformation.

To implement the programme, EDF will appoint a professional consulting firm to manage outreach, application intake, screening, due diligence, investment evaluation and post-investment monitoring. Working closely with EDF, the selected implementing partner will also conduct information sessions, verify local sourcing practices, support investment recommendations and oversee portfolio monitoring throughout the six-month implementation period.

Beyond providing equity investment, SIPP Cohort 2: EIT aims to strengthen Cambodia's startup ecosystem by promoting greater local sourcing, supporting domestic suppliers and documenting successful business models that can be replicated across the wider market. Through the initiative, EDF seeks to reinforce its role as a catalytic investor that helps de-risk business growth, accelerate digital transformation and strengthen Cambodia's digital economy.

Interested consulting firms must first submit an Expression of Interest (EOI) before being invited to submit technical and financial proposals. Proposal submissions close on Aug. 26, 2026. According to EDF, the selection process is intended to ensure transparent, professional and accountable programme delivery in line with the fund's investment mandate.

Submit your Expression of Interest: https://bit.ly/4buhM9k

For more information: https://bit.ly/4xhbZwf