Startup Funding Trends

Startup Funding Trends

KG Charles from Silicon Valley conducted a session on "Startup Funding Trends" at Aman Center for Entrepreneurial Development, IBA Karachi on Wednesday 28th December, 2016. KG started the session by emphasizing the scope of entrepreneurship particularly in Pakistan. Furthermore he discussed the factors which would lead to the failure of any startup. First and foremost critical factor is "team". Majority of the startups fail due to bad hires or poor cultural fit.

Furthermore, KG highlighted the importance of team building for any startup. He emphasized in creating ownership among the team by giving them equity, career growth, acknowledging their contribution etc. Moreover, teams should be compensated at different milestones of a startup i.e completion of product demo, completion of MVP (Minimum Viable Product), product launch etc. He also mentioned that startups should take some experienced and industry expert advisors on board at their early stage. The funding stage comes once MVP (Minimum Viable Product) is formed. At this stage KG discussed the funding trends prevailing in Silicon Valley.

Finally KG pinpointed the startup funding trends in Pakistan. He highlighted the following factors in this regard:

I) Angel Investment and Venture Capital market is immature in Pakistan. Capital is concentrated to very few people who do not prefer to invest in startups within Pakistan. These people prefer investing in real estate or in any other business outside Pakistan.
II) If some investment deals mature, they are very small.
III) The investment deal terms of startups make growth difficult. For example the investors take more equity and control which creates demotivation and weakens the ownership of founders. Ultimately it hinders the growth.
IV) Industry-Academia relationship is weak. Centers of excellence of emerging fields should be developed in universities with the help of industry to cater the future intellectual needs.

This session was attended by the founders of different startups, management teams of incubation center and faculty members.

Startup Funding Trends

 

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