Wanted: Investment partner for Pakistan’s $33 million startup fund

Zahid Lilani
Wanted Investment partner for Pakistan's $33m startup fund
Wanted Investment partner for Pakistan’s $33m startup fund

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%.

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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.

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