white paper investor roundtable · showcasing the local startup ecosystem and drawing numerous...

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021DISRUPT

Investors’RoundtableCAPITAL VENTURES INTO PAKISTAN

WHITE PAPER 2019

Participants of the Investors’ Roundtable

Raza MatinBrandverse

Chris RogersLumia Capital

Misbah Naqvii2i Ventures

Faizan SiddiqiTCS Holdings

Rabeel WarraichSarmayacar

Shane ShinShorooq Investments

Berhard KlemenSarmayacar

Jonas EichhorstTharros Capital

Roger BayatAngel Investor

Ali SamirTPL Ventures

Imran Aftab10pearls Ventures

Beau SeilPatamar Capital

Meenah TariqPartner at Karavan.vc

Atif AwanIndus Valley Capital

Jehan AraThe Nest I/O

Charlie IllOman Technology Fund

Isfandiyaar ShaheenNetEquity

Faisal AftabLIVC

Sadia ShahidWizdom.ai

Mubariz SiddiquiPaksign

Matthew TabbinerLumia Capital

Abdullah SejaAngel Investor

Haider HilalyItthaca Capital Management

Shoaib Zahid MalikKausar Group of Companies

Jamil GoheerKualitatem

Omar Parvez KhanLIVC

Khurram Zafar47 Ventures

Syed Saquib AliArif Habib Limited

Asad Ja�rii2i Ventures

Kalsoom Lakhanii2i Ventures

Omar ShahCOLABS

Syed NasehDiya Interactive

Naeem ZamindarZamindar Capital

Zeeshan Aftab10Pearls

Taimur Ali KhanTPL e-Ventures

Jawwad Farid (Moderator)Alchemy Technologies

Munib PuriThe Nest I/O

Akash ShaikhThe Nest I/O

Khwaja M. ObaidullahTelenor

Mikaeel Habibi5 Capital

Farhan QureshiGoogle

Hammad OmarInsitor Management

Suleman ManiyaShajar Capital

Rafay GaditGaditek

Ali BawaniSarmayacar

Rizwan DiwanSarmayacar

Jamil Akbarpvt equity Pakistan

Also:

Pakistan has been in the news for all the right reasons.

Our entrepreneurial landscape is being recognised as a

growing space, a breeding ground for incredible ideas, and a

hub of untapped talent and potential. This has been an

outstanding year for startups in terms of the deals which

have been made and the kinds of ideas which have come

about from within the ecosystem.

In the third edition of 021Disrupt, The Nest I/O continued its

practice of holding an Investors’ Roundtable which aims to

allow the community to reconvene every year in an effort to

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INVESTORS’ ROUNDTABLE 01

Introduction

recap the year in startups, discuss major events which have

taken place, put forward suggestions for the future and

ultimately, connect with fellow ecosystem stakeholders.

This Whitepaper broadly details the conversations which

took place during 021Disrupt 2019’s Investor Roundtable

between some of the biggest local and international names

within venture capital.

The Nest I/O is a technology incubator and a community hub

launched in partnership with global partners such as Google

for Startups. We provide budding entrepreneurs with space,

infrastructure, facilities, and knowledge sessions as well as

access to a network of mentors and potential investors.

Since its inception in January 2015, The Nest I/O has

graduated 160+ startups over 9 cohorts through our

best-in-class incubation program. At the same time, we have

been involved in various projects and events, ranging from

promoting technology education to facilitating engagement

between the startup community and our corporate partners.

The Nest I/O

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A B O U T

02INVESTORS’ ROUNDTABLE

021Disrupt is Pakistan’s premier entrepreneurship conference

showcasing the local startup ecosystem and drawing

numerous international guests, ranging from entrepreneurs

and thought-leaders to corporates and venture capitalists.

Once a year, we bring together under one roof an eclectic mix

of speaker sessions, panel discussions, workshops,

roundtables and networking activities featuring participants

from diverse industries and fields from all across the globe. So

whether it’s a panel that offers a window into the minds of

international pioneers or an investor meeting that could alter

the course of your business, 021Disrupt can be your guide

into the future.

021DisruptA B O U T

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Key Data Points:

04

N O T E T A K E R :

R U M A I S A M U G H A L

S E N N E N D E S O U Z A

PA R T I C I PA N T S :

4 9

T O T A L D U R A T I O N :

9 0 M I N U T E S

M O D E R A T O R

J A W W A D F A R I D

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INVESTORS’ ROUNDTABLE

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05

Availability of Larger Rounds

One of the focal points of the discussion was regarding the steps

which have been taken and the improvements which have been

made within the startup ecosystem since last year’s roundtable.

Last year the main concern was that of sufficiency of capital in the

ecosystem. But just the announcements made at 021Disrupt 19

alone are a testament to the fact that circumstances have

changed. Capital is available, and it is now time for founders to

step up.

Following funding announcements such as that of Airliﬞ, the

amount raised by companies has noticed an incline, especially

Series A rounds which were nearly nonexistent until last year. This

has been indicative of not only the quality of founders and

startups within the ecosystem, but also the fact that they are at

par with startups from around the globe. People are not only

taking notice of Pakistani startups, but are also looking to bet on

their success, with many burgeoning ecosystems recognising the

Pakistani ecosystem as one which is poised to join some of the

biggest markets in the world.

INVESTORS’ ROUNDTABLE

The spike in funding opportunities and amounts has also

helped founders develop a stronger belief that they can

raise larger rounds locally. This has proved to be instrumental

in pushing mature startups to beּמer position themselves to

raise funding. Previously, a frequent complaint would be that

of the dearth of funds but with that being put to rest, the

onus is now on the founders to make sure that they’re

investor ready.

The prime difference from last year is that we can no longer

complain that sufficient capital isn’t available. That being

said, something which does need to be worked on is the

establishment of a beּמer investment structure, more

regulatory relaxations and the support of government bodies

such as SECP, SBP and FBR in an effort to bridge the gap

and bring the entire ecosystem up to speed. The fact

remains that despite the increase in funding opportunities,

we still need more seed and pre-seed investors to enter the

ecosystem. Although this was an obvious gap which was

identified, the general consensus remained that if we are to

see companies graduate from round A to round B, then they

need to be not just investment-worthy but also

investment-ready.


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Founder Maturity


In terms of founder maturity, there has been an increase in the

presence of founders with more experience. With the growing

number of incubation programs across the country, there’s a

larger volume of startups and taking note of their profiles, it is

found that the average age of founders has increased as has the

overall quality of deal flow.

That being said, as far as investor readiness goes, there’s still

some room for improvement. Although startups graduating from

incubation and acceleration programs proved to be more

polished, others did not. Investors felt that the due diligence

demands from their end continued to persist while a fraction of

startups remained unprepared when it came to their financials,

projections and roadmaps, all of which is information that forms

the basis for stakeholder involvement.

Despite the presence of incubators and relevant resources, there

seems to be a dearth of support coming in from institutes and

the government and although this alone cannot be the isolated

cause, it does contribute to it. Startups, even those coming in

with a limited amount of experience, need to be informed

enough regarding their models prior to any interactions with

investors.

The way to rectify this lies not just in the hands of institutions and

regulatory bodies but also within those of the entrepreneurial

community at large. Most startups, even the ones which came

across as amateurs, were seen to be coachable by most investors.

The quality of startups and maturity of founders is only set to

increase if we start asking them the right questions and coaching

them on how to be beּמer prepared with the answers to those

questions.


In terms of founder maturity, there has been an increase in the

presence of founders with more experience. With the growing

number of incubation programs across the country, there’s a

larger volume of startups and taking note of their profiles, it is

found that the average age of founders has increased as has the

overall quality of deal flow.

That being said, as far as investor readiness goes, there’s still

some room for improvement. Although startups graduating from

incubation and acceleration programs proved to be more

polished, others did not. Investors felt that the due diligence

demands from their end continued to persist while a fraction of

startups remained unprepared when it came to their financials,

projections and roadmaps, all of which is information that forms

the basis for stakeholder involvement.

Despite the presence of incubators and relevant resources, there

seems to be a dearth of support coming in from institutes and

the government and although this alone cannot be the isolated

cause, it does contribute to it. Startups, even those coming in

with a limited amount of experience, need to be informed

enough regarding their models prior to any interactions with

investors.

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questions.

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Formation of Association


We’ve made plenty of strides. By developing a more structured

approach to investments, with the presence of more roundtables

and forums for discussions as well as interaction and dialogue

with and between regulatory bodies has all added to the

progress we continue to make.

One significant development which has taken place is the

establishment of the Venture Capital Association of Pakistan

(VCAP) as announced by Rabeel Warraich, Founder and

Managing Director of Sarmayacar, at 021Disrupt 2019. This

association aims to not just fuel the investment landscape of

Pakistan but to provide stakeholders with a common forum

where they can discuss the state of affairs, exchange ideas and

chart a way forward.

As stated by Dr. Bernhard Klemens “A lot has happened in the

last year. It is on us to share these practices with each other and

learn from our mistakes.” This association will allow for a more

structured approach to the sharing of ideas and best practices as

opposed to the more scaּמered platforms that currently exist. He

continues by saying “Just last year we spoke about adding more

structure and Rabeel’s announcement was right on track.”

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questions.

INVESTORS’ ROUNDTABLE | WHITE PAPER 2019

organised by021DISRUPT

white paper investor roundtable · showcasing the local startup ecosystem and drawing numerous...

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