Funding Opportunities for Startups in Pakistan

Ministry of IT & Telecom
Government of Pakistan
www.ignite.org.pk 1
Funding
Opportunities for
Startups in Pakistan

www.ignite.org.pk
• Corporate Investors
• VC Funds
• Angel Investors
• Local Funding Agencies
• Public Sector Agencies
• National & International Development/Donor Agencies
• International Funding Agencies
2
Funding Available in Pakistan

www.ignite.org.pk
Lakson
Venture Capital Fund
3

www.ignite.org.pk 4
Overview
• Lakson Investments Venture Capital (LIVC) invests in Pakistan based
opportunities.
• It concentrates on investments where technology can be leveraged
to enable, enhance and disrupt existing business models or create
new ones
• Investment focus is at the stage in the start-up lifecycle where the
company is less than 36-48 months away from a successful Series A
round or potential exit.
• Invest in select Seed rounds through Incubation and Accelerator
ecosystem relationships as well as overseas partners in Silicon
Valley and Europe where we seek to bring proven foreign
technology to Pakistan

www.ignite.org.pk
Focus: Pakistan based ventures that can leverage technology to enable, enhance and disrupt
existing business models or create new ones
Investment Stage: First Stage Capital (Pre-Series A) for ventures that offer a strong
probability of achieving the next round of funding or potential for strategic acquisition within
36-48 months
Seasoned Team: A combined history of 85+ years of successful and active investing in local
and international ventures across industry sectors with a demonstrated track record
Local Expertise: Extensive local presence and numerous relationships, extensive local
network and investment experience
Global Network: Overseas experience, in-house corporate and deep global relationships,
extensive international network and experience
Deal-Flow: Leverages high quality network of human capital, Incubators, Accelerators and
Academia to generate the highest quality deal-flow
5
Market Strategy

www.ignite.org.pk 6
Selection Filter
• Enterprise & Small to
Medium Business
platforms
• Digital Payments
• E-commerce
• Retail
• Cybersecurity
• Consumer/Social
Apps & Services
• IT & Software
Development Cloud
Infrastructure
• Data Analytics
• Media Tech
• Ad Tech
• Agriculture Tech
• Solar
• Water
• Energy Storage
• Micro Grids
Emerging Themes
• Blockchain
• FinTech
• Artificial Intelligence/
Algorithms
• Internet of Things.

www.ignite.org.pk
47 Ventures
7

www.ignite.org.pk
• Primary Tests
• High growth potential business
• Large addressable market
exceeding $ 100 Min
• Leverages technology for scale
& growth
• Majority of shares to be
controlled by founders
• Secondary Tests
• Legal, registered entity in
Pakistan
• Majority founders are Pakistan
• Pakistan is primary destination
for job creation
• Business has or intends to serve
large Pakistani market through
its products/services
8
Investment Focus

www.ignite.org.pk
• Average investment
ticket size at this
stage is USD 50K
• Strong team &
viable business
model to make
product/service
9
Investment Stages
• Up to USD 300K
investments in
validated products
and services with
proof of traction in
early test markets
• Revenue, number of
users, customer
testimonials, and
other unit economic
indicators are
validated to
determine viability
for investments
• invest early growth
capital up to USD 2M
independently or as
part of a larger round
• companies should
have significant
traction, very strong
management teams,
a predictable revenue
model and potential
for rapid growth in a
large local or
international market

www.ignite.org.pk
47 Ventures Investments
Level 6, GFin Tower, 42 Hotel Street,
Cybercity, Ebene 72201,
Mauritius
Email: info@47.ventures
10
Contact

www.ignite.org.pk
Fatima Ventures
11

www.ignite.org.pk
• Early Stage
• Series A
• Series B
• Agriculture, Business
Products, Business Services,
Digital Marketing, Marketing /
Advertising , Mobile, Retailing
/ Distribution,
Telecommunications
12
An Investment fund investing in scalable tech
companies.

www.ignite.org.pk 13
Portfolio

www.ignite.org.pk
E-110, Khayaban-e-Jinnah, New Super
Town, Lahore, Pakistan
Phone: +92 42 111-FATIMA (111-328-462)
www.fatimaventrures.com
info@fatimaventures.com
14
Contact

www.ignite.org.pk
10xC
15

Overview
10xC is a tech startup seed fund; pooled money together for an experiment in Pakistan
by making small investments across a large number of entrepreneurs and provide
advisory support as needed.
10xC is a part of the PlanetN Group of Companies.
10xC makes tech investments regardless of industry or vertical, whereas PlanetN Group
invests in later-stage companies in specific verticals.
Work closely with incubation & acceleration programs, mainly because they often have
startups that fit into any one of its Pre-Seed, Seed or Series A investment requirements.

Funding
PRE SEED
PKR 1M for 10%-20%
For those without product-
market fit
• Products with little to no
customers today with
potential to scale within
the next 2-5 years.
• Can be offered by 10xC as
the only participant, or as
a co-investment with
someone who can add
value to your startup.
SEED FUND
PKR 2M - 10M
For those with customers
• For Founders who've
gone through the grind of
getting their first
customers and need
funds to stabilize their
bottom-line.
• Only available as a co-
investment with another
accredited investor or
firm.
PLANET N
PKR 10M - 100M
For those looking to scale
• Provides a platform for
prime growth to startups
through collaboration and
shared services.
• Portfolio across the
verticals of E-Commerce,
Fintech, Adtech, Retail
and Information
technology.

www.ignite.org.pk
CresVentures
18

www.ignite.org.pk
• Provide resources, strategic
advice and contacts early
businesses to get off the
ground and make it big.
• Pioneers in Pakistani angel
capital scene
19
An Angel Capital Firm

www.ignite.org.pk
TPL e-Ventures
20

A Venture Capital Investor

www.ignite.org.pk
• Industrial, Demographic &
investment trends
• Successful global models
localized for Pakistan
• Pricing Anomalies including
Labor Costs
• Growth, GDP, Trade Policy,
Legal Climate
• Labour availability
• Business Plans for Expansion
• Scalability
• DCF and Free Cash Flow analysis,
Valuation
• Gross Profit Margin, EBITDA
Margin
• Earnings Volatility
• Sustainable unit economics
• Likelihood of being bought out /
listed
22
Investment Analysis Technique

www.ignite.org.pk
• Founder & Best Team –
Passionate & Dedicated
• Deep Local & Sector Knowledge
• Differentiated Solution / Barriers
to Entry
• Scalability & repeatability of
business model
• Threat of Substitutes
• Strategic Advantages
• Sustainable unit economics
• Potential for Legal Attack
• Value of Current Litigation
• Ownership of IP – Proprietary
Technology
23
Investment Analysis Technique

Contact
Centrepoint, Off Shaheed-e-Millat Expressway,
Adjacent KPT Interchange, Karachi
Sindh 75500
Contact number: 111-000-300

www.ignite.org.pk
USAID SMEA Challenge Fund
25

www.ignite.org.pk
• Challenge Fund supports the
creation and diffusion of
innovative, sustainable, and
scalable business solutions to
the competitiveness
challenges facing Pakistani
small and medium enterprises
(SMEs) in selected sectors.
• Two Grant Programs that run
concurrently
• Innovation Grants
• SME Growth Grants
26
Challenge Fund

www.ignite.org.pk
• SMEA uses a two-tier award
system for the Innovation
Funds.
• In the first stage, applicants
will apply for ‘Solve the
Challenge/Innovation Grant’
• This grant will offer small
awards of between $20,000
and $24,500 to address
sector-specific challenges
identified by SMEA
• Applicants will receive
business plan training and
then “pitch” their grant
solutions to a panel of sector
experts for final selection.
• additional, larger Scale-Up
Challenge Grant of between
$50,000 and $400,000
available for Grantees who
effectively implement their
solution
27
Innovation Grants

www.ignite.org.pk
• These smaller grants, between
$10,000 and $50,000, will also
be focused on increasing the
competitiveness of selected
SMEs in SMEA sectors by
covering the specific costs of a
solution already identified by
the SME
• SMEA will issue an Annual
Program Statement (APS) that
will allow applicants to submit
concept notes on a rolling
basis, which will be assessed
based on the sector-specific
criteria or solutions specified
in the APS.
28
SME Growth Grants

www.ignite.org.pk
Acumen Pakistan
29

Overview
The primary object of Acumen Pakistan is to
promote, create and invest through loans, equity
investments and other capital structures in
financially sustainable and scalable organizations
that deliver affordable and critical goods and
services in areas including water, healthcare,
housing and energy to improve and elevate the
lives of low-income people.
OUR COMPANIES
CREATE
SUSTAINABLE
SOLUTIONS THAT
ENABLE THE
POOR TO
TRANSFORM
THEIR LIVES

www.ignite.org.pk
AGRICULTURE
Agriculture investments span innovations
such as financing for smallholder farmers,
organic fertilizers that increases yields, and
mobile technology that ensures farmers
secure fair prices for their crops.
31
Sector Focus
EDUCATION
Investments focus on all parts of the
education system, from basic schooling to
job training for low-income customers, to
generate pathways out of poverty.
ENERGY
Investments are accelerating energy
solutions across the developing world and
building sustainable models to bring clean
energy to millions of low-income people.
HOUSING
Support solutions that improve the supply
and financing for affordable housing and
financial innovations that bring the dignity
and security of home ownership to low-
income families.

Portfolio
AGA KHAN RURAL SUPPORT PROGRAM
ANSAAR MANAGEMENT COMPANY
KASHF SCHOOL SARMAYA
SRE SOLUTIONS
MICRO DRIP
NASRA PUBLIC SCHOOL
NATIONAL RURAL SUPPORT PROGRAM
PHARMAGEN HEALTHCARE LTD
NIZAM ENERGY

www.ignite.org.pk
Karandaaz
33

Promotes Access to finance for Micro, Small &
Medium Sized Businesses
• Direct Investments
• Whole Sale Investments
• Strategic Investments
Karandaaz
Capital
• National Payment Infrastructure
• Innovation & Incubation
• Research & Policy Regulations
Karandaaz
Digital
• Innovation Challenge Fund
• Women Entrepreneurship Challenge
Karandaaz
Innovation

Direct Investments for deploying growth Capital for
SMEs
• Revenue upto $15 Mn, Assets upto &15 Mn, Employee
upto 300Company Size
• Upto $ 5mn, larget with Co-InvestorsTicket Size
• Not more than 50%, Significant minority,
Opportunistic ControlOwnership Stake
• Growth Capital: Common Equity, Preffered Equity,
Convertible Debt, Structured CreditInvestment Type
• Education, Health Care, Agriculture, Logistics,
Construction, Retail & WholesaleSector Focus

www.ignite.org.pk
HEC
Technology Development Fund
36

Vision of TDF
Technology Development Fund facilitates
institutions of higher learning to serve as
engines for socio-economic development of
Pakistan. Support researchers to merge their
ideas/research into products/services to
make Pakistan become a knowledge
economy.

www.ignite.org.pk
• Researcher having an idea or has done initial
research for product development
• Required to submit proposal in collaboration with
prospective industry, who can take up the product
for its commercialization/marketing.
• Project duration will not exceed 2 years
38
Eligibility Criteria

HEC-TDF pool of experts from academia &
Industry evaluate proposals
• Initial Scrutiny (Research Executive Committee-HEC)
• External Review by experts from Industry (1 expert) &
Academia (2 experts)
• Defense or idea pitching (focus on Business model of project)
@ HEC
• Approval from TDF-Steering Committee

www.ignite.org.pk
Total Allocation of Rs. 2.94 billion (2,905.752
Million) for TDF by Federal Government under
which 200 projects would be approved & funded
in the next five years.
Each successful proposal will then receive a grant
up to maximum Rs. 14 million.
40
Funding Available

www.ignite.org.pk
• Principal Investigator
• Customer problem/need to be solved
• Product/Service Solution
• Market Opportunity/ Value proposition
• Competitive Strategy
• Go to Market Strategy
• Management Team
• Operations
• Financials
• Offering & future Investment Analysis
41
Criteria Used for Evaluation

Grading of Weighted Score
<60 to 50 - Business Research proposal
considered NOT RECOMMENDED
<70 to 60 - Business Research proposal
Recommended with Minor Revision
70 or more - Business Research proposal
considered RECOMMENDED

www.ignite.org.pk
Science, Technology & Innovation
Transform Fund (IsDB-STIF)
43

www.ignite.org.pk
Category 1:
New Ideas with Proof of Concept
Category 2:
Scaling Up of Innovative Projects
Category 3:
Commercialization of Technology
Category 4:
Capacity Building in Science,
Technology & Innovation
44
Multimillion Dollar Fund to provide SEED Money to
Innovators, Startups & SMEs

www.ignite.org.pk
• Supports Scientists,
Innovators, with
demonstrated concept a SEED
funding
• Develop ideas in to Pilot
Project Development
Solutions
• Grant ranging from $ 50,000
to $ 100,000
Evaluation Criteria
• Innovativeness
• Impact & Outreach
• Doable/Practical
• Scalable /Replicable
• Sustainability
• Patentable with Commercial
Potential
45
Category 1: New Ideas Proof of Concept

www.ignite.org.pk
• Supports Scientists, SMES,
Research Institutes,
Entrepreneurs, NGOs
• Pilot project should be
successful
• Funding is for scale
up/replicate the project
• Funding upto $ 300,000 in
form of equity participation
Evaluation Criteria
• Innovativeness
• Potential Replicability
• Sustainability
• Patent Registration
• Business Model
46
Category 2: Scaling up of Innovative Projects

www.ignite.org.pk
• Supports Scientists, SMES,
Research Institutes,
Entrepreneurs, NGOs
• Successful implemented and
scaled up project
• Additional funding required
for commercialization of
prodcuct/service
• Funding upto $ 1,00,000 in
form of equity participation
Evaluation Criteria
• Innovation
• Potential Replicability
• Sustainability
• Patent Registration
• Business Model
47
Category 3: Commercialization of Technology

Specific Timeline for Applications
The second round for the Call for
Innovation under Transform Fund will
open on 1st April 2019.
For more information:
https://www.isdb-engage.org/

www.ignite.org.pk
Insitor Asia Impact Fund
49

www.ignite.org.pk
• Identify promising early stage
ventures that solve critical
social issues
• Provide Capital and Strategic
Planning to scale their impact
• Make Investments throughout
Cambodia, India, Myanmar &
Pakistan
Objective:
To contribute to the
development of a fair and
inclusive marketplace that
serves the prevalent unmet
needs of low-income
communities.
50
Invests Venture Capital Funding in
Startups through out Asia

Portfolio

Contact
Insitor Impact Asia Fund Pte. Ltd.
6 Temasek Boulevard #09-05
Suntec Tower Four
Singapore (038986)
email: info@insitorimpactasiafund.com

www.ignite.org.pk
Ignite
National Technology Fund
53

Ignite- Creating a Knowledge Economy
MANDATE:
• To create a knowledge economy through
innovation and commercialization of
research.
CORPORATE STATUS:
• A Guarantee Limited Company,
incorporated in 2006 by the Federal
Government, under Section 42 of
Companies Ordinance, 1984.
CORE BUSINESS:
• To fund Technical R&D/Innovative
Products and HRD projects in ICT that
impacts the economy.
SOURCE OF FUNDING:
• 0.5% Gross Revenue of Telecom
operators.

www.ignite.org.pk
Several Core Activities Support the Mission
55
SEED Fund FYP Fund DigiSkills.pk
Internship Program Scholarship Program National Incubation Centers

www.ignite.org.pk
Solving Meaningful Problems and Availing
Opportunities with 4IW Tech
56
TECHNICAL R&D PROJECTS
753 Proposals worth PKR
15,859 M Received
143 Proposals worth PKR
2,378 M Approved
NEW THEMATIC AREAS INTRODUCED
 Neurotech
 Robotics
 Shared economy
 Internet of Things
 Wearable/Implantable
 3D/4D Printing
 Augmented/Virtual Reality
 Artificial Intelligence, Big Data
 Blockchain
 Cloud Infrastructure
4Excellence Awards at
Scientific Forums
300
+International
Publication
2k
+Quality Human
Resource Trained
19% Proposal
Acceptance
18 In Closure
Phase
44 On-going
Projects
81 Closed
Projects

How and What We Fund?
SOLICITED & UN-SOLICITED:
• Technical Research & Development
• Primarily submitted by academia
• Innovative/ Commercial Development
• Primarily submitted by industry
• ICT capacity building initiatives
Criteria
• Alignment with mandate and a
dominant ICT component
• Sustainable, scalable and replicable
• Commercialization Potential and/or
• Impact upon masses and/or
• Addition to existing body of knowledge
MERIT BASED PROCESS:

Priority Thematic Areas
ARTIFICIAL
INTELLIGENCE,
BIG DATANEUROTECH
WEARABLES
& IMPLANTABLES
CLOUD
INFRASTRUCTURE
SHARED
ECONOMY
AUGMENTED &
VIRTUAL REALITY
BLOCKCHAIN
INTERNET
OF THINGS
3D/4D
PRINTING
ROBOTICS

Funding Approved in Verticals (2016-2017)
33 High Quality Projects worth PKR 578.05 Mn funded by Ignite
18.76
79.75 83.61
104.69
191.49
99.75
AgriTech EduTech EnergyTech HealthTech Telecom Others

Funding Approved in Horizontals (2016-2017)
216.49
27.35
6.24
68.46
122.42
45.94
91.16
151.64
9.39
56.65
AI/ Big Data Augmented/
Virtual Reality
Clean Tech Cloud Internet of Things Wearable/
Implantable
Others
Primary Technology Secondary Technology
33 High Quality Projects worth PKR 578.05 Mn funded by Ignite

Key Aspects of the Proposal
RESEARCH & DEVELOPMENT:
WHO:
Intro about the organization and core
team
WHAT:
Scope, Literature Review, Challenges and
Motivation
WHY:
Research Objectives
HOW:
Methodology, Resources, Capability,
Budget
PRODUCT DEVELOPMENT:
WHO:
Intro about the organization and core
team
WHAT:
Innovation, Business Case, Financial
Projections
WHY:
Commercial Objectives
HOW:
Methodology, Resources, Capability,
Budget

Key Aspects of the Proposal
INNOVATION: BUSINESS PLAN:
• Problem / opportunity / gap / needs that
applicant wants to address/solve?
• What's new about the idea/solution? How the
proposed solution is unique or innovative?
• Some of the well-known (identify the best
known if possible) existing solutions to this
problem. Their known strengths and
weaknesses.
• How proposed solution will address the
weaknesses of existing solutions?
• Techniques to achieve the improvements.
• Competitors’ Analysis
• Key Stakeholders
• Target Customers/
Beneficiaries
• Value Proposition
• Revenue Stream and
projections for 2-3 years
• Sales/Marketing Plan

www.ignite.org.pk
Thorough internal and external evaluation and end user endorsement.
63
Selection of Unsolicited Research
and Innovation Projects
APPLICATION
SUBMITTED
INITIAL
ASSESSMENT
INTERNAL
EVALUATION
EXTERNAL
EVALUATION
APPROVED
MONITORING
REVIEW
FINANCIAL
REVIEW
PAC/BOARD
REVIEW

www.ignite.org.pk
Questions?
64

Thank you!
6th Floor, HBL Tower, Jinnah Avenue
Blue Area, Islamabad
www.ignite.org.pk
Asfand Yar Khan
Head Commercialization & Outside
Investments
(+92 51) 921 5360 – 64 Ext 179
0333 516 4041
asfand.yar@ignite.org.pk
IgniteNTF IgniteNTF /company/IgniteNTF IgniteNTFFollow us on:

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