Pakistan Startup Fund to Start Accepting Funding Applications Soon
A few weeks ago, the Federal Minister of IT and Telecom, Dr. Umar Saif, launched the Pakistan Startup Fund (PSF) to facilitate startup investment. Under the new initiative, the government will invest up to Rs2 billion annually in the startup sector. On Wednesday, Dr. Umar announced in a post on social media that the PSF will start accepting funding applications from March onwards.
“PSF—designed to facilitate Pakistani startups to close early-stage VC funding rounds—will start accepting funding applications in March,” he said. “The PSF is designed to help a startup raise its first external investment,” Dr. Saif said during the launch of the PSF.
What is the Pakistan Startup Fund?
The PSF is structured as equity-free capital to assist in concluding a VC (venture capital) round for a startup.
“If you are a startup in Pakistan and a foreign VC is evaluating your startup for a $1 million investment, the VC only needs to invest $700,000—the Pakistan Startup Fund will give you a grant of $300,000 to help close the round,” Dr. Saif said while explaining the PSF. “We won’t take any equity or shares in your startup, a board position, etc.
“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 VC investors to drive your success,” he added.
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