The VC Syndrome in Pakistan

Share this Article


Riaz Haq not-so-recently wrote a detailed post on the venture capital investment activity, or the lack of it, in Pakistan. The hesitation of VC firms in doling out funds for Pakistani ventures is mainly because of the so-called ‘lacklustre’ activities and security situation in Pakistan. Even the Pakistani entrepreneurs based in Silicon Valley are tarnishing the image of Pakistan.

Speaking in a panel discussion at OPEN Forum 2008 recently organized by the Organization of Pakistani Entrepreneurs in Silicon Valley, Faraz Hoodbhoy, the CTO of PixSense, argued that Pakistani expatriates in Silicon Valley are the harshest critics of Pakistan. They are not immediately likely to ask US VCs to invest in Pakistan.

This reluctant behavior of Pakistani-American entrepreneurs has already cost us a lot. If you have the expertise and the funding, why don’t you make use of the opportunities available in your homeland? The good omen is that some of these people have actually made successful interventions in Pakistan but the majority is still sitting on the fence.

We have a $50 million Competitiveness Support Fund (CSF), set up to fuel the growth of Pakistani startups but the regime change and the security situation has hampered its efforts. The fund is also currently more focused on microfinancing and social uplift projects and not in IT startups.

While the efforts of the Pakistani government and CSF are laudable, the real impetus will come from the successful outcome of VC investments in companies such as PixSense and Naseeb. The other factor that will influence US VCs to do deals in Pakistan is the willingness of Pakistani-American entrepreneurs in the US to set up presence in Pakistan and demonstrate the value of Pakistani talent to the Americans and the rest of the world.

Naseeb is a runaway success, we all know, and PixSense is not doing bad either. VC investment in Naseeb came when Pakistani economy had already started taking a plunge but the investors had a confidence in the company’s standings. The crux of the matter is that if your venture has got ‘that thing’ in it then it will definitely attract investment. Given the current global economic slowdown, lobbying for more VC investments is a really difficult job but not much if we get the support of our well-heeled brethren of the Silicon Valley.

Facebook comments:


  • There are other Matching Grant Funds also. Business Support Fund ( and Agribusiness Support Fund ( come to mind.
    ASF provides grants to Service Providers / Consultants for their capacity building as well as product development.

  • I dont even think that IT startups on the CSF’s roadmap to begin with – IT isnt really a “sector” by official definitions and I think CSF is focused more on traditional sectors like agriculture, telecom etc.

    Now, someone making software for agriculture could probably apply I suppose

  • Osama,

    ASF is focused on agribusinesses, CSF is more of a policy making / supporting body. They have quite a broad mandate / initiatives including setting up a VC Fund and setting up Incubators.

    Anyway, ASF can support IT enterprises, if they ask the right way.

  • I believe one needs to clarify that there may be US based companies with PK based back office opertaions that have received US VC funding – I don’t know of any PK companies getting US VC funding yet, because US VC’s do not directly invest here. A VC industry doesn’t really exist in Pakistan either.

Leave a Reply


Recent Posts

  • Events General Mobile Apps Container Run a continuation of politically motivated apps

    Container Run a continuation of politically motivated apps

    First we had Angry Imran which brought smiles and some short lived fun for us during the election campaign. Then came Gullu Butt following the incident of Model Town Lahore, which stayed on top of charts (Pakistan play store) for quite some while. Also Gullu Butt made an update with having the famous “Aam Khaiyga” quote form Aamir Liaqat in which a character resembling Aamir Liaqt throws mangoes and the Gullu Butt character tries to catch them. Gullu butt currently has more than 100,000 Installs

    And now during this extremely politically tense situation which had the whole nation on its toes on 14th August we have another app continuing the …

    Read more →
  • Announcements Featured Startup General aims to help student make better decision regarding their future. aims to help student make better decision regarding their future. aims to solve an age old problem for our students, where to go next?

    If you have just completed your primary school which college to pick, if you have completed your college which university to pick. There has always been lack of information or rather consolidated information regarding these questions. The best source till now has always been relatives and friends (mostly of your parents). So some uncle did CA and made a good living you should talk to him and decide, or daughter of my sister completed her medical and is practicing follow that career.

    The fact that online presence of our existing universities are limited and not …

    Read more →
  • General Mobile Apps Eccentria Technologies launches an app which shoots to the top of the charts

    Eccentria Technologies launches an app which shoots to the top of the charts

    Whoa!! this was quick so Eccentia technologies launched an app a few days ago called “Ajj Kia Pakaen” or what to cook today and today it has reached the top of charts for Pakistani Stores on iTunes and google play store.

    “Ajj Kia Pakaen” is the most common question asked at every house hold in the morning. The ladies of the family have a hard time deciding what to cook for the day. The app has a fun interface and is simple to use, you fire it up, and it gives you an option of what to cook for the day, if you like the option you can check the …

    Read more →
  • Coffee Session General Marketing/Adv Rise of facebook marketing in Pakistan

    Rise of facebook marketing in Pakistan


    Until a few years back we used to have closed groups and forums, which gathered the like minded people and anyone targeting the online audience would tap into that forum and market his/her services. So PakGamers , PakPassion initially even PakWheels used to be driven by members talking about what they loved, people used to create marketing and sales opportunities from within those discussions (so you could get a good router cheap or a gaming PC etc).
    The advent of facebook changed all that, most of the forum goers moved to the new social media. It also made a very attractive market place for some one who does not …

    Read more →
  • General Getting back

    Getting back

    I  have been out of blogging for a long long long time, a lot of things happening on personal front (including a little startup I have ben doing my self). However during my absence I met a lot of people who had followed GreenWhite at its peak, read the articles regularly.

    I had hope there would be some one else who would come ahead and cover everything going on and around us in the local tech world. There are some guys doing a great job, but for some reason I still could not find one source where I can go and read about everything, so my routine usually is to …

    Read more →
  • General Mobile Apps Software & I.T. GeniTeam launches official app for Pakistan Idol

    GeniTeam launches official app for Pakistan Idol

    GeniITeam has successfully launched an official app for PakistanIdol. This is one of the first collaboration between a reality game show and a local app development company. I am sure a lot more would follow. Previously we have seen seenreport becoming the basis of mostly all channels citizen reporting system (Like Geo Dost). This is a healthy sign and with the advent of 3G round the corner it should become a business generator for our local firms.

    App allows you to follow the contestants that you like, promote them, comment on live feedback on an episode. It offers official content from the show since it is developed with partnership with …

    Read more →
  • General 10Pearls and National Geographic Release A Geography Challenge App

    10Pearls and National Geographic Release A Geography Challenge App

    10Pearls, one of the leading Pakistani IT companies, has recently added another feather to its cap. This time, in partnership with National Geographic, 10Pearls has released the new and improved GeoBee Challenge App – an interactive app to challenge and grow the geographic knowledge of the users.

    Each year thousands of schools in the United States participate in the National Geographic Bee using materials prepared by the National Geographic Society. The competition is designed to encourage geography in the classroom, ignite student interest in the world around them, and increase public awareness about geography. Schools with students in grades four through eight are eligible for this entertaining and challenging test …

    Read more →
  • General 10Pearls Spins Off Game Plan8

    10Pearls Spins Off Game Plan8

    It’s heartening to see that Pakistani IT companies have now started to diversify themselves into non traditional areas, and are competing with global players in areas such as gaming. We have received information that 10Pearls, one of the leading  mobile and enterprise web development services companies in Pakistan, has spun-off a separate entity focused solely on developing and publishing casual mobile games.  The new entity, Game Plan8, will focus on creating 2D and 3D games for the iOS, Google Android, Kindle, Facebook and other platforms. Details can be seen on the company’s official press release at


    Read more →
  • General Telecom CCP Gives Guidelines Against Telecom Companies’ Deceptive Marketing

    CCP Gives Guidelines Against Telecom Companies’ Deceptive Marketing

    If only were there two things when it comes to the law, firstly the fear of breaking it and by passing the legal authority, and secondly, implementation of the law given full dedication, there would have been less competency and dishonesty in business and society. However, keeping good faith, the Competition Commission of Pakistan (CCP) has put forward “Deceptive Marketing Guidelines” which will maintain the Section 10 of the Competition Act, 2010. In order to enforce this part of the law and stop anti-competitive conduct on part of the telecom companies in advertising, the guidelines have been shared with Pakistan Telecommunication Authority (PTA) and other concerned telecommunication sector members, in …

    Read more →