Abstract:
The thesis has two objectives. First, is to analyze the current performance of the VC
industry in Pakistan. Second, is to examine the issues faced and the future prospects of
the industry.
As Venture capital is the success model in the west and created a positive impact by
catalyzing the economic growth, employment creation and innovation. It helped
entrepreneurs in turning their innovative ideas into reality.
Developed Economies such as US, China, UK, Japan, and Germany all have succeed in
developing the VC industry and reap the results in the form of socio economic impact.
Other economies such as Singapore, Israel and Canada also have done considerable
efforts in the creation of VC systems in their economies to be in place. The model yet to
prove its potential in Pakistan as it is still in the nascent stages.
Even though the VC exist in Pakistan since 1990 when two companies were established
however since after twenty years there are only three companies that are in the business
of VC with little venture investments and one angel network that brings together the
investors and the entrepreneurs.
There are issues on the demand and supply side of the VC which needs to be addressed to
bring forth the industry on the growth direction. These issues are Limited exit options,
limited entrepreneurial ventures, non supportive legal framework, inadequate source of
funding and the insufficient government role/ efforts.
There is a need to replicate the success stories of the countries that developed the industry
in their countries and formulate the strategies and policies by folding into the local
environment.
As Pakistan is the country of 180 million people with each year 1 million people enter
into the job market. If the industry develops it would help in giving the alternative
options to the professionals to start an entrepreneurial venture having promising ideas by
financing through Venture capital and bring forth innovation resulting in creating the jobs
and the growth of the economy as well.
