Start-Up-Business-Loan-In-Pakistan-By-Government

Start-Up Business Loan In Pakistan [By Government] (PKR 10-50Lakh)

Pakistan’s entrepreneurial ecosystem is thriving, and the government is committed to supporting start-ups through initiatives like the Pakistan Startup Fund. This article provides an overview of the Pakistan Startup Fund, its benefits, objectives, and application process.

Recommended Reading: Top 5 Banks To Get a Personal Loan In Pakistan

Start-Up Business Loan in Pakistan: A Comprehensive Guide

Start-Up-Business-Loan-In-Pakistan

Benefits

  • Equity-free capital: The Pakistan Startup Fund provides 10%-30% of the total investment made by a VC in a particular funding round as equity-free capital or a grant.
  • No government involvement: The fund does not claim any equity or royalty, nor does it take any board position or governance role in managing the start-ups.
  • Support for start-up growth: The fund facilitates start-up growth and development by contributing towards fulfilling their financial requirements.

Objectives

  • Promote start-up growth: The Pakistan Startup Fund aims to promote start-up growth and innovation in Pakistan.
  • Encourage investments: The fund encourages investments in Pakistan by top-notch global and local VC funds.
  • Support entrepreneurship: The fund supports entrepreneurship in Pakistan, providing start-ups with the necessary resources to succeed.

How it Works

  1. Registration: A VC interested in availing PSF’s facilities registers as a PSF partner/member on the designated portal ‘(link unavailable)’.
  2. Whitelisting: PSF carries out due diligence and adds the VC to its verified list of partners.
  3. Application: VC funds apply to the Pakistan Startup Fund for the grant against the investment in a Pakistani start-up.
  4. Grant Disbursement: PSF disburses the funds pro-rata to the tranche of the investment released by the VC.

Fund Mechanics

  • Investment Range: The fund offers 10%-30% of the total investment made by a VC in a particular funding round as equity-free capital or a grant.
  • Grant Positioning: The grant is positioned as the final piece of the financial puzzle, providing start-ups with additional support after they have secured funding from the private sector.

How to Apply for the Pakistan Startup Fund

For VCs:

  1. Register: Sign up on the portal startupconnect.pk.
  2. Verification: Complete due diligence to become a PSF-approved partner.
  3. Submit Application: Apply for grants on behalf of startups by providing investment details.
  4. Grant Approval: Await the PSF Investment Committee’s decision on grant approval.
  5. Receive Grant: Disbursement occurs once all criteria are met.

Recommended Reading:

Add a Comment

Your email address will not be published. Required fields are marked *