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.
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Table of Contents
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
- Registration: A VC interested in availing PSF’s facilities registers as a PSF partner/member on the designated portal ‘(link unavailable)’.
- Whitelisting: PSF carries out due diligence and adds the VC to its verified list of partners.
- Application: VC funds apply to the Pakistan Startup Fund for the grant against the investment in a Pakistani start-up.
- 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:
- Register: Sign up on the portal startupconnect.pk.
- Verification: Complete due diligence to become a PSF-approved partner.
- Submit Application: Apply for grants on behalf of startups by providing investment details.
- Grant Approval: Await the PSF Investment Committee’s decision on grant approval.
- Receive Grant: Disbursement occurs once all criteria are met.
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