It was a big year for tech and the startup space to say the very least. The largest Series A and Series B rounds in Pakistan were announced with Bazaar getting $30 million and Airlift $85 million respectively. Overall, $337 million was raised across 71 deals throughout the year.
There are no two opinions about this being fantastic for Pakistani startups. The country’s economy is better off for having all of this attention from investors, the startups are proving to be great employers for young professionals looking to break into the corporate world, and the continued attention towards Pakistan has meant more interest and more entrepreneurial spirit.
Celebrating this success is important. It is, however, also equally important that there be a word of caution regarding all that is happening. The attention of foreign venture capital firms will have far reaching implications for Pakistani startups in terms of financing and business strategy for Pakistani startups.
In the race to secure more funding and have the biggest round, startups may find themselves forgetting to focus on the most important thing – good business fundamentals. The high and heavy approach that has dominated Pakistan’s startup scene has been that of Blitzscaling. Startups, in order to start off strong and get lots of people on their platform, burn a lot of cash to acquire customers. There is a certain logic behind the method. Spending money on getting customers then allows you to have a solid customer base...
Read Full Story: https://profit.pakistantoday.com.pk/2021/12/26/a-word-of-caution-for-the-startups/
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