The Pakistan government’s Ignite has further eased pathways for domestic and global venture capitalists (VCs) to deploy capital into high-potential local startups. This latest initiative forms part of the Pakistan Startup Fund’s (PSF) expanding overarching vision to cultivate world-beating, innovative companies locally through public-private sector collaboration.
Interested investors can now seamlessly register on the dedicated Pakistan Startup Fund portal to gain access to an approved whitelist of venture capital firms. Once registered, VCs undergo rigorous due diligence by PSF’s investment committee to verify credibility and domain expertise.
The streamlined mechanism allows whitelisted VCs to apply for matching grants worth 10-30% of their direct investments into post-revenue Pakistani startups. Unlike typical arrangements, PSF only serves as an investment catalyst and does not seek equity, governance rights or royalties in funded startups. This allows optimal freedom to investors and entrepreneurs without outside interference.
Moreover, grants get awarded to startups as the ‘last cheque’ in ongoing funding rounds only after securing commitments from commercial VCs upfront. This ensures purely complementary support once business viability gets validated externally.
Over 180 domestic and global VCs have already registered on the platform to access co-investment grants supporting Pakistan’s next generation of innovative companies.
By eliminating red tape, creating aligned incentives and facilitating access to growth capital, Pakistan Startup Fund proves instrumental for its vision of making Pakistan a global hub for technology entrepreneurship. Already, funded startups are showing potential to drive innovations and expand globally across verticals like fintech, edtech, healthtech and more.
Attracting international VC attention also results in localized knowledge and connections transferring to domestic ecosystem stakeholders. This paves the way for more homegrown fund managers to emerge.
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