The Government of Pakistan is seeking an investment partner to invest in its Rs. 6 billion ($33 million) Pakistan Tech Startup Funding Program.
Tell me more: To support the tech startup ecosystem in Pakistan, the Government is seeking investors that will match its contribution to a startup fund.
The Government is planning to invest Rs. 6 billion over five years.
When an investing partner matches the Government’s funds, the contribution will go even further.
Also, this reduces the investor risk by 50%.
The Government will provide a grant, whereas the investor will get equity.
But it will be capped at 20%.
Before you go: The investment partner will manage and operate the fund with the Government.
This will be done through a Special Purpose Vehicle (SPV).
The investment partner’s job will be to identify promising startups and make investments. Startup investment will be capped at Rs. 50 million.
Big picture: Early-stage startups are the riskiest in the startup life cycle.
As a result, venture capitalists and angel investors are hesitant to invest in early-stage startups due to high failure risks.
The startup fund reduces this risk for investors. Other countries, such as Israel, have successfully implemented and benefited from such initiatives.
