Angel Investment In Pakistan

Why We Need Angel Investment In Pakistan?

A rapidly growing population

Young population

Lack of access to Jobs for many young professionals

Frustration and Depression

Poorly paid jobs for graduates

Lack of business skills among University graduates

Opportunity to Make a Difference

Small Efforts can make a big difference

Large Population /

Rapid Growth

Cost optimization opportunities

Talented young people need

direction, mentoring and

coaching

Angel Investment for Pakistan Why?

Creation of new

enterprises

The Model Works

tried and tested

Value Addition to the entire society

Helping the

Country

Creation of

new jobs

EnhancementOf

Skills

Benefits of Angel Investing in Developing Countries

Increasing Entrepreneurial Capability

Angel Mentorship can be more

important than funding

Increasing Angel

Investment Capability

New skills for

mentors Establishment of Investor Groups /

Networks

How the rest of the world sees Pakistan….• A country filled with extremism and

sectarianism• The most dangerous place on

earth(Newsweek)• Economically bankrupt/Debt ridden

economy ( IMF Bailout required)• One of the most corrupt countries in

the world(Transparency International)

• Amongst the lowest ranked in Human Capital(World Economic Forum)

Obstacles for Investment In Pakistan

Ranked 128th out of 189 in Ease of doing business (World Bank)

Complex and Obtuse SECP Regulations

State Bank lacks Vision

Dealing with FBR is a Nuisance

Legal System lacks Capacity to Deliver

Chronic Energy crisis inflates the Cost of doing Business

But things have never been better…

• Interest Rates at a 42 year Low – will drive investment

• Low Inflation• $46 billion of investment from

China • International Agencies

endorsement of Pakistan’s macro-economic policies

This may be as good as it gets!

Opportunities Galore

• Opportunities abound• Room to incorporate tried

and tested ideas in Pakistani market with localization

• Solve local problems – 188 Million people and growing every minute

• Extremely Cheap place to acquire equity stakes in start-ups

• International Investors moving in to capture the talent pool

Success Stories of Pakistani Start-ups

Markhor – Raised $100k through Crowd Funding

BookMe – Raised funds through a Turkish Angel Investor

Technolsys – Raised Funds from Pakistani and International

investors

WIFI GEN – Raised $50K from an American Angel Investor

The start-ups require too much hand holding and lack business expertise

Not well developed business plans

Concerns about business ethics/practices of the founders

Unable to identify suitable Angels

Unrealistic expectations as to the value of their start-ups – The Silicon Valley Delusion

The desire to take “control” by the local businessmen

Not placing a value on the IP developed

Wanting to have employees rather than partners

Not understanding the start up culture and issues

Inability to monitor their performance

Lack of Control/Trust in the system

Reluctance to Invest in Start Ups by Pakistani Angels

The Start ups The Angels