Dr Umar Saif launches the first-ever Pakistan Startup Fund

BY Syed Wahaj Ahmed

Caretaker Federal Minister for IT and Telecommunication Dr Umar Saif has launched the first-ever “Pakistan Startup Fund (PSF)” as the government will allocate up to Rs2 billion for PSF every year.

The PSF aims at to catalyse venture investments in Pakistan and position Pakistani startups as significant players on the global stage. Ignite National Technology Fund will take charge as executing body, ensuring transparency through an independent steering body overseeing the operations.

While addressing the inauguration ceremony on Tuesday, Dr Umar Saif said the government will allocate up to Rs2 billion for PSF every year. The fund is structured as an equity-free capital to help close a venture capitalist (VC) round for a startup, he said, adding that PSF is designed to help a startup raise its first external investment. Dr Umar Saif said if there is a startup in Pakistan and a foreign VC is evaluating the startup for a $1 million investment, the VC only needs to invest $700,000. The PSF will give a grant of $300,000 to help close the round, he maintained.

He said PSF is designed to lower the risk for international investors to invest in Pakistani startups.

“With PSF we hope to create a value of at least Rs50 billion per year in the startup ecosystem in Pakistan,” he said.

Dr Umar Saif said the fund represents a transformative initiative in the realm of entrepreneurship and technological innovation. By focusing on the burgeoning potential within the country’s startup ecosystem, the PSF will accelerate economic growth and innovation in the country.

The fund will underwrite the risk of Venture Capitalists by providing equity free grants to the startups as the last cheque in an investment round. It will not only provide financial support by also foster an environment of innovation and entrepreneurship vital for the success and scalability of startups.

He said this event presented a unique opportunity to venture capitalists to delve deeper into PSF. Dr Saif said PSF will pave way for exciting collaborations and open doors to more innovative and prosperous future. He said the PSF will connect innovative startups, venture capitalists and investors. He said the Ministry of IT and Telecommunication will continue supporting technological innovation and entrepreneurship. About $800 million were invested in Pakistani startups in last four years, he said.

He said the network of eight National Incubation Centers (NICs) are supporting startups in the country, and over 4,000 startups are indicative of a vibrant entrepreneurial landscape.

The ceremony was attended by local and international venture capitalists, investors, ambassadors, heads of know tech companies, and senior officers of Ministry of IT & Telecom and its attached departments.