Innovative solutions to simple to complex challenges are provided by a lot of startups that are working in Pakistan, from food carts to e-commerce businesses, to help out the people. Still, there is a lot of problems existing that should be resolved by such organizations and startups in Pakistan.
There are a lot of speculators in Pakistan who have the potential and talent to start a startup, but due to funding issues, a lot of them drop this idea. Also, some of them may face the challenge of non-residential or due to employees of multinational forums.
If you are an entrepreneur, want to be an entrepreneur, or want to build a startup in Pakistan, and finding the fundraiser so that you can start up your business. Then, below is the list of the 7 ways for your startup to raise funding in Pakistan 2021 through private and public sector organizations.
Crowdfunding
Crowdfunding is a way to raise funding with the help of a large number of people. This platform convinces the people or investors to invest. It also provides disruptive ideas to the entrepreneur in one place.
For example, IndieGoGo allows individuals to pitch a business idea to an investor in a community of investors, and as a result, significant funds are generated. The IndieGoGo shows the list of the funded campaign and the funds raised by them to ensure transparency.
Crowdfunding follows the following steps.
- Estimate the amount that you want to collect
- Create and assemble a campaign
- Provide detailed information to your campaign with the help of videos and images.
- Share your business idea and model on which you want that investor should pitch.
- Provide your information related to contact.
Crowdfunding in Pakistan provides a lot of benefits to entrepreneurs. Some of them are listed below.
- It is a fast scheme that can raise funds for your startups with no fees upfront.
- Pitching on business ideas or startups online is a more beneficial way of marketing. It also pulls the media’s attention towards itself.
- Sharing your idea provides feedback to people. Also, the experts guide you to improve your business plan.
Bank Loan
Banks in Pakistan, both private and government, offer loan opportunities for the entrepreneur having unique business ideas and concepts, but some specific conditions are implemented on the user.
For example, bank Alfalah provides loans having range 50,000pkr to 2 million having a tenure of 1 to 5 years, to the entrepreneur having the new business plan or working model. But it did not need the collateral requirements.
The National Bank of Pakistan provides loans for entrepreneurs having unique business plans or ideas. It provides a maximum loan of up to 1.5 million PKR with a tenure of 5 years. It also not implements the security /collateral requirements.
Angel investing
Angel investor can be a business angel, informal investor, or private investor that provides the capital for the startups. But the question arises, how to find a useful angel investor in Pakistan. It is easy to find the angel investor in Pakistan as a lot of angel investors are available in Pakistan that is promised that they will invest in the useful business ideas.
For example, 10 x c seed funding is the most popular investing group can be called the angel investing group in Pakistan. They invest in new and useful business startups that fulfil their market demands.
Venture Capitalist
It is a private investor that provides capital to the business startups that have access to the stock market. It follows different terms and conditions unlike other ones and takes more in return of investment.
There is a different type of venture capitalists such as startup capitalists, early-stage capitalists, and many other capitalists. The early-stage capitalists support you if your organization have zero efficiencies, then venture capitalist helps you to grow your marketing and increase the efficiency of the organization.
Microfinance Providers
Microfinance is a type of banking services that give loan known as karobari qarza to the individuals having low income or unemployed. A lot of people do not want to take loans from Pakistani Banks due to many reasons and prefer to take a loan from microfinance providers.
Microfinance provides loans up to 1,5 million PKR having tenure of 6 months to 2 years.
Government Schemes for Entrepreneur
Different government schemes for the startups in Pakistan are available that support the startups having a unique business idea. They allow the youth to start their own business with a working business plan. Some of such schemes are described below.
Prime minister youth business loans scheme provides the opportunity to the youth and other people to make their startups by providing funds. They provide almost 2 million PKR to the entrepreneur.
Youth entrepreneur is another scheme that provides loans to the youth with 0% markup. It also offers the loan in three tiers. It provides 1 million PKR in the very first tier, 10 million in the 2nd tier, and 25 million in the 3rd tier.
Friends and Family
If you are unable to get funds from all of the above-described resources or do not want to avail hose resources, then the other option is that you can raise funds for your startup by taking a loan from your friends and family.
The other benefit of taking a loan from family and friends is that they will support and appreciate you if you have a well-defined and unique business plan. Brief them on the whole idea before taking a loan from them for your startup so that the tenure pressure decreases on you. Thus, this source will be quite helpful from other resources.
Also Read: Lessons from the Startup Nation
Conclusion
The above description summarizes that there are different resources in Pakistan by which you can raise funds for your startup. So, if you want to start your own business or startup or search for investors, then hopefully, the above content helps you out to find the investor. If you have any queries, then feel free to ask about them.
