ISLAMABAD, Pakistan: The interim government has launched the Pakistan Startup Fund (PSF) which will invest up to Rs 2 billion every year in Pakistani Startups.
In a statement on X on Tuesday, the Caretaker Federal Minister for Information Technology & Telecommunications Dr. Umar Saif said that the fund is structured as an equity-free capital to help close a venture capitalist round for a startup.
The PSF is designed to help a startup raise its first external investment.
Dr. Umar Saif said that if you are a startup in Pakistan and a foreign venture capitalist is evaluating your startup for a US$ 1 million investment, the venture capitalist only needs to invest US$ 700,000 — the Pakistan Startup Fund will give you a grant of US$ 300,000 to help close the round.
“We won’t take any equity/shares in your startup or a board position etc,” he said.
The minister said that PSF is designed to lower the risk for international investors to invest in Pakistani startups; once we have written you a cheque, we won’t hassle you at all .. betting on you and your venture capitalist investors to drive your success.
“With PSF we hope to create a value of at least Rs 50 billion per year in the startup ecosystem in Pakistan,” Dr. Umar Saif said.
نگراں وفاقی وزیر آئی ٹی ڈاکٹر عمر سیف نے پاکستان اسٹارٹ اپ فنڈ کا اجراء کر دیا۔
تقریب میں ملکی و غیر وینچر کیپیٹلسٹ، سفارتکاروں اور معروف ٹیکنالوجی کمپنیوں کی شرکت.
“حکومت پاکستان نے پاکستان اسٹارٹ اپ فنڈ کے لیئے 2 بلین روپے مختص کیے ہیں.” @umarsaif#PakistanStartupFund pic.twitter.com/EUXjQxCIYn
— Ministry of IT & Telecom (@MoitOfficial) January 9, 2024
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