Pakistan’s startup ecosystem endured a challenging year in 2024, with venture capital funding plunging by a staggering 70 percent to $22.5 million, down from $75.8 million in 2023, according to figures released. The number of deals also fell dramatically to 15, compared to 39 the previous year, reflecting a sharp contraction in investor activity.
Despite this overall decline, the average deal size rose significantly. Investors shifted their focus to fewer but larger investments, pushing the average deal value up by 68 percent to $3.75 million. The median deal size saw an even steeper rise of 158 percent, landing at $3.1 million.
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Early-stage ventures continued to dominate the funding landscape. Pre-Series A and seed-stage rounds made up a combined 86 percent of all disclosed capital, while Series A deals dropped to just 14 percent. Notably, there were no Series B investments recorded this year, highlighting a widening gap in growth-stage capital.
The year also spotlighted the persistent gender gap in startup financing. Startups founded solely by men received over 75 percent of the total equity funding, while none of the capital went to all-female-founded teams. Debt financing, however, provided a cushion, with $20.5 million raised through 28 deals—fintech and e-commerce leading the way.
Interestingly, while the startup landscape faltered, Pakistan’s broader tech sector showed resilience. The ICT industry grew 8.5 percent, far outpacing national GDP growth of 1.73 percent. ICT exports soared to $3.6 billion, with computer services and telecom playing major roles. This contrasting trend reflects both the challenges and the potential within Pakistan’s evolving digital economy.
