Adnan, who is documenting entrepreneurial business insights he learns while working on Lootmaar, said in a post which talked about Pak Startups:
If you are a Pakistan entrepreneur looking to start up, there is an entire community to support you. It has founders and CEOs of publicly traded companies, senior executives in companies like Yahoo, SAP and Sun, professors in top schools like Berkley, and of course, angels and top-tier VCs. And you know what?
They want to see you succeed.
That’s good encouraging advice for startups.
The trouble is, as I’ve said often in the comments at G&W, that even though Pakistan’s private equity industry is seeing growth, and even though many VCs from abroad are making frequent rounds here (even the people who backed Paypal and other ventures), what Pakistan’s Entrepreneurial market REALLY needs is an angel investment network that well defined and represented by professional organizations.
As Fahd Bangash (Amaana) mentioned here, tech startups working on local problems here only need $150K – $250K to become a decent business, not $7-8 MM. I agree.
The second difference between the Valley and Indus, is a problem resulting from disproportionate wealth balance. Many of the brightest ideas from the country cannot even rely on “friends and family capital” to get going – it pretty much doesn’t exist unless you are already a 25-yr industry veteran.
What seems to work for some companies is bootstrapping, but if the goal of your tech business is to build a product that solves a problem like Jawwad feels will work for Pakistan (and I agree with him on this), there could be nothing more harmful to your focus than doing professional services projects as bootstraps (unless you’re consulting in the precise domain that your product serves, as Alchemy did).
Ofcourse, any aspiring entrepreneur can even set out to solve THIS problem with a hi-tech solution. Any entrepreneur up to the challenge?