Pakistan Entrepreneurship

Ecosystem Report 2014

Press Kit

About Invest2Innovate

Invest2Innovate supports impact-oriented enterprises in developing markets.

We have been working in Pakistan since 2011, and plan to scale to other
countries in 2015. i2i finds, vets and selects young entrepreneurs for the i2i
Accelerator, a four month program that provides business support, mentorship
and access to i2i Angels, our angel investor community. By supporting
entrepreneurs, engaging mentors & investors, and partnering with local
stakeholders, we are working to build a strong entrepreneurial ecosystem in
Pakistan to foster economic growth and positive social change in the country.

Invest2Innovate in the Press

Invest2Innovate Accelerates Pakistan's Young

Entrepreneurs.

>> Fast Company

Six Civic-Minded Startups from Pakistan's i2i

Accelerator are Looking to Solve Real Problems

>> Tech In Asia

Kalsoom Lakhani of i2i on the Pakistan Startup

Scene.

>> Tech Cocktail

Pakistan's social entrepreneurs eager to unlock

innovation potential.

>> The Guardian

Promising Entrepreneurial Developments.

>> Dawn

Message from the CEO

We hope this study can be used as a resource for
players looking to understand the nuances of
Pakistans growing entrepreneurship ecosystem, says
Kalsoom Lakhani, Founder & CEO of Invest2Innovate.
While many challenges persist for startups in
Pakistan, we are excited and encouraged to witness
the increased activity, as well as the number of local
leaders committed to improving the enabling
environment.

Introduction to the report

The Pakistan Entrepreneurship Ecosystem Report is an in-depth and
comprehensive analysis of the enabling environment for businesses in the
country. The study maps the space, assesses the gaps & challenges
entrepreneurs face in Pakistan, and provides recommendations on how to
improve the ecosystem in the future.

Following you will find the key points from the report. >>

Methodology

The report was prepared using guidelines from the Aspen Network of
Development Entrepreneurs (ANDE) Toolkit

The report is based on the 119 responses received with help from partner
organizations such as Organization of Pakistan Entrepreneurs (OPEN), The
Indus Entrepreneurs (TiE), AllWorld Network, the Pakistan Software Houses
Association for IT & ITES (P@SHA), and the U.S. Pakistan Womens
Council along with interviews conducted with 15 leading entrepreneurs and
stakeholders in the country.

The target audience of the survey was based in urban areas and Pakistans
major cities Lahore, Karachi and Islamabad. Respondents were mainly from
the IT sector.

Ecosystem Map

Growth in Pakistans entrepreneurship ecosystem is reflective of a global

trend; with local chapters of Startup Weekend, Startup Grind, Lean Startup
Machine, Google Groups, Civic Hackathons and TED launching in recent
years in the country.

Increased Internet penetration and the growth of users on social media

(specifically Facebook and Twitter) has also exposed would-be
entrepreneurs to global trends and developments.

Platforms like Khan Academy, Coursera, Udacity, EdX has helped in online
learning and provided access to high-quality education content.

Ecosystem Map
The ecosystem can be divided into two direct domains for analysis finance
and support, from which initiatives from government, foundations,
corporations, investors, universities, and entrepreneur support organizations
(incubators, accelerators, coworking spaces, competitions, industry
associations, and forums) are listed in relation to the life cycle of an
[opportunity] entrepreneur (1) idea stage (2) early stage and (3) growth stage.

Ecosystem Map: Infographic

The ecosystem can be divided into two
direct domains for analysis finance and
support, from which initiatives from
government, foundations, corporations,
investors, universities, and entrepreneur
support organizations (incubators,
accelerators, coworking spaces,
competitions, industry associations, and
forums) are listed in relation to the life
cycle of an [opportunity] entrepreneur
(1) idea stage (2) early stage and (3)
growth stage.
Interactive version of this infographic is
available on our website:
http://invest2innovate.com/peer2014.html

Finance

The Punjab Government has helped boost the economic activity of startups
by setting up PITB (Punjab Information Technology Board), which has
launched various innovative initiatives such as Plan9 incubator, Plan9
TechHub and IT Training Academy.

The KPK Government has launched initiative to promote entrepreneurship

and job creation under the Khud Kalafat Loan Scheme and on a national
level the PMs Youth Buisness Loan Scheme is the only initiative supporting
entrepreneurs.

The P@SHA Social Innovation Fund is a notable initiative, seeded by

Google, and managed by P@SHA that awards small grants of around
$5000-$8000 to impact based startups.

Corporations such as Shell and Google have been active in this space with
the Shell Tameer initiative and GBG/GDG respectively.

Finance

For Pakistani entrepreneurs the concept of angel investment, venture

capital and private equity is still very new and is slowly gaining traction, but
there are an overall lack of formalized funds in the investment space.
List of all organizations working in this space are available in the report.

Support

There are number of competitions and forums within Pakistan that are
mostly local chapters of global brands (Startup Weekend, Startup Cup,
Startup Grind etc).

Many universities, with support from the Higher Education Commission,

have set up incubators to support university-level entrepreneurs and are
working to strengthen linkages between industry and the academia.

Incubators such as Plan9, The Foundation by LUMS and the upcoming

P@SHA Tech Incubator have proven to be very instrumental in supporting
this ecosystem along with Accelerators (Invest2Innovate, PlanX) and
Coworking spaces (TechHub, DotZero and BaseCamp).

Ecosystem Trends & Observations

There is an opportunity for the government to play a stronger

role to help the entrepreneurial ecosystem.

Ecosystem Trends & Observations

Foundations and philanthropic capital can play a key role in the

life cycle of an entrepreneur.

Ecosystem Trends & Observations

Overall there is a lack of formalized VC and Private Equity

players.

Ecosystem Trends & Observations

Increased activity in competitions and forums does not always

translate into formation of startups as participants lose interest
over time.

Ecosystem Trends & Observations

Universities are building incubation centers but there is a need

for more intra academia collaboration.

Ecosystem Trends & Observations

There needs to be more incubator and accelerator programs in

Pakistan spread across various cities.

Ecosystem Trends & Observations

The Pakistani Diaspora plays a strong role in boosting the

economic activity of the country.

Gaps & Challenges

Government needs to form policies that increase transparency, simplify and

facilitate the processes of business formalization.

There is still a major capital gap for startups looking for early-stage
investment, either from angel investors or formal VC funds.

Over the last couple of years, a lot of activity has increased in the
entrepreneurial space thanks to incubators, coworking spaces, accelerators,
industry associations, competitions and forums but the main challenge is to
keep the activity persistent and to keep the startups engaged and on track
and build a strong pipeline for businesses.

The lack of developed human capital is also another key challenge,

particularly for companies looking for strong talent.

Share away!
Help us spread the word about. Use the hashtag #peer2014 to share facts
from the report on social media

Contact
Saad Hamid

Communications and Partnerships Lead

Email: saad@invest2innovate.com
Mobile: +92 (301) 8690012