Inaugural 2-Billion-Rupee Fund Initiated To Support Startups

Web DeskJanuary 10, 20243063 min
Inaugural 2-Billion-Rupee Fund Initiated To Support Startups

Caretaker Minister for IT and Telecom, Dr. Umar Saif, launched the Pakistan Start-up Fund (PSF) with a historic value of Rs2 billion, marking a significant step towards attracting venture investments and establishing local start-ups as key players on the global stage. The Ignite National Technology Fund will oversee the PSF’s execution, ensuring transparency through an independent steering body.

Dr. Umar Saif emphasized the government’s commitment to allocate up to Rs2 billion annually for the PSF. This fund is structured as equity-free capital, aiming to facilitate the closure of a venture capital round for a start-up. It is specifically designed to assist a start-up in securing its initial external investment.

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During the inaugural ceremony, Dr. Umar Saif revealed that Pakistani start-ups have attracted $800 million in investments over the last four years. The PSF aims to mitigate risks for international investors considering investment in Pakistani start-ups, providing a 30% grant for a start-up’s total investment requirement.

The caretaker minister articulated that the PSF’s objective is to create a conducive environment for international investors, projecting a target value of at least Rs50 billion annually in Pakistan’s start-up ecosystem. He highlighted the transformative nature of the initiative, positioning the Pakistan Start-up Fund as a catalyst for economic growth and innovation.

The PSF is envisioned to underwrite venture capitalists’ risks by offering equity-free grants to start-ups, serving as the final investment in a funding round. This innovative approach aims to accelerate technological innovation and entrepreneurship in the country.

Dr. Umar Saif emphasized that the PSF will act as a bridge connecting innovative start-ups, venture capitalists, and investors. Concurrently, the Ministry of IT will continue its support for technological innovation and entrepreneurship, fostering an environment conducive to the growth and success of start-ups.

With over 4,000 active start-ups supported by eight National Innovation Centres, Pakistan’s entrepreneurial landscape is poised for further development and expansion, facilitated by the launch of the Pakistan Start-up Fund.

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