Pakistan is now regarded the most attractive frontier market which is practically untapped from a startup perspective. That is why many international venture capital firms and angel investors have shown noteworthy interest in Pakistan’s entrepreneurial ecosystem.
By Abdullah Qureshi
As of 2022, 64% of Pakistan’s population is comprised of tech-savvy, talented, and innovative youth. And 23% of them, with their entrepreneurial mindset, want to establish their own business. (UNDP)
This shows that Pakistan has the key ingredient, creative entrepreneurs, for a thriving startup environment. But startups cannot survive in a vacuum. They need a nurturing and healthy atmosphere to manifest and grow. That’s where the notion of a startup ecosystem comes to light.
The we’ll not only explain the current startup ecosystem in Pakistan but will also lay down a path that young entrepreneurs can follow to achieve victory in their entrepreneurial voyage. But before we discourse the entire framework of Pakistan’s startup ecosystem, let’s discuss the startup ecosystem itself and its present state of affairs in Pakistan.
The startup ecosystem is a framework/network of some key individuals and organizations, put together to construct a sustainable environment for startups to bloom in. These individuals and organizations can further be categorized into;
- Angel Investors
- Large Corporations
- Venture Capital Companies
- Startup Mentors
- Entrepreneurs
- Incubators & Accelerators
- Co-Working Spaces
- Colleges & Universities
- Service Providers
- Media & Blogs
- Events & Competitions
- Government Agencies
All of these mutually dependent participants and elements come together, through physical or virtual means, and work as a system to promote and support startups.
Rise of Pakistan’s Startup Ecosystem
According to the worldwide startup ecosystem report (2021) by StartupBlink, Pakistan has risen to the 75th position globally and was ranked 2nd in the south Asian region. Internationally, Pakistan’s education, marketing & sales, and transportation industries are ranked at 58th, 57th, and 52nd positions respectively.
The rise of Pakistan’s startup ecosystem was majorly observed in the period of 2012 and 2021. In 2012, there were merely any key players in the ecosystem as only 2 major incubators & accelerators were present with almost no fundraising organizations and service providers. (Source).
But as of 2021, there are more than 98 ESOs (entrepreneurship support organizations), 35 incubation and acceleration centers, 18 co-working spaces, and roughly 20 formal investors. (invest2innovate)
Pakistan is now considered to be the most attractive frontier market which is practically untapped from a startup perspective. That is why many international venture capital firms and angel investors have shown noteworthy interest in Pakistan’s entrepreneurial ecosystem. And their participation is evident in a recent fund-raising event in which Pakistani startups raised a staggering 540$ million through 99 deals. Success to that, Pakistan has now 3,844 startups in total.
Startup Ecosystem Mapping
According to Investopedia, roughly 75 percent of startups fail during the first 10 years of operation. The reason could be that they were in the wrong market, didn’t have experience, lacked research, had ineffective marketing, or even had a partnership.
Every entrepreneurial startup goes through certain phases before it can become a well-established business. And on each stage of development, it requires particular guidance & assistance that could enhance its success rate and prevent it from shutting down.
That’s why there is the existence of an entrepreneurial ecosystem which is comprised of such players and organizations that provides the necessary guidance & assistance to startups at different stages.
Let’s have an overview of the startup ecosystem of Pakistan;
Incubators/Incubation Centers
If your startup is in its early stages of development, then seeking help & guidance from incubators would be the best course of action. As the core purpose of incubators is to provide support to startups in their early phases.
| Incubators | Location |
| The Nest I/O | Karachi |
| Takhleeq | Lahore |
| Accountability Lab | Islamabad |
| Bahria Incubator | Islamabad/Karachi |
| IBA Center for Entrepreneurial Development | Peshawar |
| Innovation District 92 | Lahore |
| NSpire | Lahore |
| Microsoft Innovation Center | Lahore |
| NUST Technology Incubation Center | Islamabad |
| National Incubation Centers | Islamabad, Karachi, Lahore, Peshawar, Quetta |
| Plan9 | Lahore |
| TechValley | Abbottabad |
| SEED Ventures | Karachi |
| WomenX | Islamabad |
Accelerators
If you already have established your business and have cleared up through the early development stage, then approaching startup accelerators should be your main priority. The purpose of accelerators is to boost your business growth through intensive support, guidance, and facilities.
| Accelerators | Location |
| 10XC | Karachi |
| Fintech Factory | Karachi |
| Invest2Innovate | Islamabad |
| Jazz xLR8 | Islamabad |
| PlanX | Lahore |
| Telenor Velocity | Islamabad |
| Spring | Islamabad |
| Founder Institute | Islamabad/Lahore |
| ScaleX Accelerator | Islamabad |
Co-Working Spaces
As the name suggests, co-working spaces provide entrepreneurs, independent contractors, small businesses, and other types of workers a space to conduct business affairs. There are more than 25,000 co-working spaces all over Pakistan. Some of the prominent ones are as follows;
| Co-Working Spaces | Location |
| KickStart | Lahore |
| Campus Co-working | Lahore |
| Ground Zero | Lahore |
| Daftarkhwan | Lahore |
| LCE Plug N Play Centre | Lahore |
| TechHub Connect | Lahore |
| Cafe Garage | Islamabad |
| WeCreate Center | Islamabad |
| Basecamp | Peshawar |
| DotZero | Karachi |
| The HQ | Karachi |
Network/ Foundations/ Associations
Networking platforms are what connect all the other elements of a startup ecosystem. To support and promote the entrepreneurial landscape, many non-profit foundations/associations have been established. Their objective is to provide such platforms where entrepreneurs, investors, educational institutes, and other supportive organizations can collaborate and discuss entrepreneurial ideas & opportunities.
| Organization | Location |
| Pakistan Innovation Foundation | Islamabad |
| Demo | Islamabad |
| Impact Dynamics | Peshawar |
| Epiphany | Islamabad |
| Entrepreneurs’ Organization | International |
| Organization of Pakistani Entrepreneurs (OPEN) | Islamabad/Lahore /Karachi |
| MIT Enterprise Forum Pakistan | Lahore |
| The Indus Entrepreneurs (TiE) | International |
| Women in TechPk | Karachi |
| Startup Grind | Lahore/Islamabad/Karachi |
Venture Capital
Venture Capital firms are large institutions that invest in startups, at different stages, in return for equity. There are almost 21 venture capital companies in Pakistan. Some of the leading ones are as follows;
| Organization | Location |
| 47 Ventures | Lahore |
| Acumen | Karachi |
| Lakson Investments | Karachi |
| Sarmayacar | Lahore |
| Fatima Ventures | Lahore |
| Gobi Partners | International |
| Golden Gate | Singapore |
| i2i Ventures | Karachi |
| Middle East Venture Partners | International |
| Insitor Impact Asia Fund | South Asia |
Angel investors
Angel investors are high-net-worth individuals who provide financial backing to startups in exchange for equity in the business. There are many angel investors in Pakistan; according to the Angel Investment Network Pakistan, there are over 312,499 investors registered.
| Investor | Location |
| Angel Investment Network | International |
| DotZero Ventures | Karachi |
| Artistic Ventures | Karachi |
| CresVentures | Lahore |
| Planet N | Karachi |
| Elahi Group of Companies | Karachi |
| WeRaise | Islamabad |
Donor Funds
Many national and international organizations initiate donation-based crowdfunding programs to support entrepreneurship and economic growth.
| Organization | Location |
| Ignite Fund | Islamabad |
| USAID SMEA | Islamabad |
| Seedout | Lahore |
| Australian High Commission | Islamabad |
| Care O Bar by Baitussalam | Karachi |
| Karandaaz | Islamabad |
Federal Government
Over the past few years, the federal government of Pakistan has successfully initiated many funding programs to facilitate and inspire the development & growth of startups in Pakistan.
| Funding Program | Location |
| HEC Technology Development Fund | Islamabad |
| Centre for Social Entrepreneurship | Islamabad |
| PM’s Kamyab Jawan Lending Program | Islamabad |
| Small & Medium Enterprises Authority (SMEDA) | Islamabad |
| National Business Development Program | Lahore |
Media Platforms
Many digital media platforms play their role in the ecosystem by providing the latest news, information, reviews, and much more to promote the culture of entrepreneurship.
| Online Media Platforms | Location |
| Techjuice | Lahore |
| Pakwired | Lahore |
| ProPakistani | Islamabad |
| Startupguide.pk | Islamabad |
| TechInAsia | International |
| MIT Technology Review Pakistan | Lahore |
| VCast | Karachi |
Conferences & Competition
Startup conferences and competition events attract many venture capitalists, speakers, corporates, and angel investors. Such occasions provide opportunities for many entrepreneurs to present their ideas and showcase their talent.
| Competitions/Conferences | Location |
| Hult Prize | International |
| Circle: She Loves Tech | Nation-wide |
| Code for Pakistan Civic Hackathons | Islamabad |
| KP Apps Challenge | Khyber Pakhtunkhwa |
| P@SHA ICT Awards | Islamabad |
| Startup Grind | Islamabad/Lahore /Karachi |
| Digital Youth Summit | Peshawar |
| Momentum Tech Conference | Karachi |
| Startup Weekend | Nation-wide |
Conclusion
Tech-talented youth, innovative ideas, supportive policy and regulatory environment, untapped frontier market, and many other factors have contributed a lot in mapping the startup landscape in Pakistan. For the last 10 years, the startup ecosystem of Pakistan has developed and expanded to a large extent.
However, there are still many gaps and challenges that entrepreneurs, investors, support organizations, and all the other actors in the startup ecosystem must overcome. These difficulties include macroeconomic barriers, a lack of education, sociocultural influences, a lack of security, inadequate formal mentoring, and many others.
The past few years were indeed quite exciting for Pakistan’s startup ecosystem, but for constant progression, looking ahead into its future with a critical eye is necessary. It has now become crucial for the government, supportive organizations, and key stakeholders to address the existing issues to have a flourishing startup ecosystem in Pakistan. As this will not only help just startups to nurture but will also play a major role in Pakistan’s economic growth.
The writer is the founder of Esygma Inc, a startup helping Web3 businesses to grow and scale. He is currently working with several businesses in the Web 2 and Web 3 space, helping them grow through digital marketing and changing market behaviors in light of the emerging Blockchain economy. The author is a double major in Computer Science and Physics from Kalamazoo College, Michigan.
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