In 2021, Pakistan’s startup ecosystem has raised an impressive $101.12 million year-to-date (YTD) across 33 deals. This includes $19.39 million in Q1 from 15 deals and $81.73 million in Q2 from 18 deals. Below are the key insights from this remarkable growth.
Significant Growth in Q2 2021
Investment Surge
Q2 2021 saw a 322% increase in funding compared to Q1. This rapid growth reflects rising investor confidence in Pakistan’s startups.
Year-Over-Year Growth
Impressive YTD Increase
The $101.12 million raised YTD in 2021 represents a 536% increase from the $15.90 million raised during the same period in 2020. It’s also 53% higher than the total investment in 2020, which was $66 million. Given that deals typically pick up in Q3 and Q4, 2021 is poised for even greater growth.
2021 Investment Projections
Potential Year-End Total
In 2020, Q3 and Q4 combined brought in approximately $50 million. If Q3 and Q4 2021 follow the same trajectory, total investment could surpass $151.13 million—the highest ever in Pakistan’s startup history.
Top Funded Sectors in 2021
- E-Commerce: $84 million (44 deals)
- Fintech: $48.62 million (26 deals)
- Mobility/Transportation: $44.53 million (12 deals)
- Health: $19.07 million (24 deals)
Average Investment Sizes by Sector
- E-Commerce: $6.6 million
- Health-Tech: $4.8 million
- Fintech: $3.5 million
Seed-Stage Investments
Rising Deal Count
Seed-stage investments have been increasing steadily since 2017. By Q2 2021, 23 seed-stage deals were completed, matching the total number for all of 2020.
Growing Average Ticket Sizes
The average investment size for pre-seed, seed, and Series A deals has grown significantly since 2017, showcasing the increased capital flowing into early-stage startups.
Conclusion
Pakistan’s startup ecosystem is witnessing rapid growth, with increasing investments and rising average deal sizes across all funding stages. With strong Q2 performance and projections pointing toward a record-breaking year, 2021 is set to be a pivotal moment for startups in Pakistan.
Explore More: Check out our Startup Deal Flow Tracker for detailed insights on each deal and more investment trends.
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