Islamabad January 9 2024: Umer Saif, the Minister of IT and Telecom, announced the launch of the Pakistan Startup Fund (PSF) today, committing to invest up to Rs 2 Billion annually in Pakistani startups.
The fund is structured as equity-free capital, intended to support startups in closing their venture capital rounds. PSF aims to facilitate a startup in securing its initial external investment.
Umer Saif explained, “For startups in Pakistan undergoing evaluation by a foreign VC for a $1 million investment, the VC only needs to contribute $700k. The Pakistan Startup Fund will provide a grant of $300k to assist in finalizing the round.”
He emphasized, “PSF will not acquire any equity or shares in your startup, nor seek a board position. Its purpose is to mitigate the risk for international investors considering investments in Pakistani startups. Once we’ve issued a check, there will be no further interference, placing our trust in you and your VC investors to drive success.”
Umer Saif expressed his vision for PSF, stating, “Through PSF, we aspire to generate a value of at least Rs 50 Billion annually in the Pakistani startup ecosystem.”
