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%.

You can read more posts like the one you are reading without leaving your inbox. Enter your email below.

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.

Total
22
Shares
Related Posts
Sign up to receive a concise summary of one startup-related news story sent straight to your inbox.
Keep me informed
Total
22
Share