Ignite Unveils Venture Capital Framework via Pakistan Startup Fund

Ignite, in collaboration with the Pakistan Startup Fund (PSF), has introduced an efficient Venture Capital mechanism to facilitate investment in Pakistani startups by Venture Capitalists (VCs). VCs interested in participating can now register as PSF partners through a dedicated portal. Following registration, PSF conducts thorough due diligence and whitelists VCs, ensuring transparency and credibility in the process.

 

Once whitelisted, VCs can apply for grants from PSF for their investments in Pakistani startups. The grant approval process involves comprehensive evaluation by both the VC and PSF’s Investment Committee, ensuring the viability and impact of the investment. PSF disburses funds proportionately to the VC’s investment tranche, providing 10-30 percent of the total investment made in a funding round as an equity-free capital or grant.

 

Notably, while PSF acts as an investment partner, it refrains from claiming equity, royalties, or governance roles in the startups. This approach alleviates concerns about government interference, allowing VCs to retain autonomy in their investment decisions.

 

This initiative aims to not only facilitate access to capital for startups but also promote collaboration between the public and private sectors, fostering innovation and economic growth in Pakistan’s expanding startup ecosystem. The Pakistan Startup Fund, backed by the government, is designed to support and stimulate the growth of startups in the country by encouraging investments from global and local VC funds.