Rs. 2 billion “Pakistan Startup Fund” is launched by the IT Minister
Leading IT businesses, diplomats, and local and international venture capitalists attended the inaugural opening of the Pakistan Startup Fund (PSF) by the Caretaker IT Minister, Dr. Umar Saif. With a total value of Rs. 2 billion, the fund seeks to boost venture capital investment in Pakistan and be a vital component of the nation’s economic growth.
Alongside Dr. Umar Saif at the opening ceremony were Secretary IT Hasan Nasir Jami and CEO of Ignite, Asim Shehryar. The minister underlined that the PSF’s main objective is to accelerate venture capital funding, giving entrepreneurs a substantial amount of financial help. Thirty percent of each PSF-backed venture will come from the fund, with venture capitalists providing the remaining seventy percent.
Dr. Umar Saif stated that the PSF would allow the government to support and encourage the expansion of creative endeavors in Pakistan. This program attempts to foster an atmosphere that is conducive to the growth of entrepreneurs in addition to providing financial support. As part of a larger plan to strengthen the regional tech ecosystem, the IT Ministry is actively seeking to provide facilities and support for IT companies.
Dr. Umar Saif emphasized the achievements of Pakistani entrepreneurs, pointing out that during the previous four years, they had drawn almost $800 million in international investments, indicating a growing interest in the nation’s entrepreneurial scene worldwide.
The Caretaker Minister went on to clarify in a tweet that a foreign venture capitalist just needs to invest $700,000 if they are considering investing $1 million in a Pakistani firm. The PSF is going to finish the funding round with a $300,000 award. Crucially, the government has decided not to accept any equity, shares, or board positions in the firm, highlighting the PSF’s function in assisting foreign investors by reducing risk and promoting the prosperity of Pakistani entrepreneurs.
Today we launched the Pakistan Startup Fund (PSF) which will invest up to Rs 2 Billion every year in Pakistani startups. The fund is structured as an equity-free capital to help close a VC round for a startup. PSF is designed to help a startup raise its first external investment.… pic.twitter.com/I0CGdZ9Js1
— Umar Saif (@umarsaif) January 9, 2024
The Pakistan Startup Fund (PSF) aims to create an annual value in the startup ecosystem of Pakistan of at least Rs 50 billion, according to a statement made by the caretaker IT minister during the event. The minister disclosed that over 4,000 companies are receiving active support from 8 National Incubation Centers located throughout the nation.
With an annual allocation of Rs. 2 billion set aside expressly to help entrepreneurs raise a considerable Rs. 50 billion, the government is committed to helping businesses secure capital. The Minister underscored the importance of this fund in offering beginning capital, and he conveyed the government’s commitment to cultivating a favorable atmosphere for the expansion of inventive endeavors in Pakistan.
Starting on March 1, the PSF is expected to begin offering financial support to businesses. It will protect foreign investors’ investments, provide policy guidelines for venture funds, and make it possible for big businesses to participate in Pakistani entrepreneurs. This strategic plan is expected to stimulate innovation, growth, and investment in the entrepreneurial environment, hence having a favorable effect on the nation’s startup ecosystem.
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