The KP Startup Fund is Pakistan’s first Shariah-based angel fund designed to encourage and support the startup ecosystem. Formed by the Advisory Board of NIC in 2020, the KP Startup Fund aims to develop financial skills for debt management, assistance in obtaining future loans from various lenders and enhance the founders’ and team’s confidence. Furthermore, the ultimate goal of the Shariah-based angel fund is to lend money to already functioning businesses with ready-to-ship products and orders or services, but cannot due to a lack of finances.
To support the ecosystem, KPSF joined hands with National Incubation Center Peshawar in 2021 and by June 2021, the first round of funds was already distributed to three finalists from NIC Peshawar. The allocated will not only establish money management skills, but also provide working capital loans and the art of increasing returns in a shorter time frame.
The eligibility for the KP Startup Fund is as follows:
- Startup should be a graduate or have completed one at least of NIC programmes.
- Startups must provide documents needed for loan approval
- Financial plan must be in place as well as evidence of their capacity to repay the loan.
As a potential sponsor or adviser, major value is contributed via being actively involved in the process, with frequent interactions with the NIC management and the company, whether it is for loan approval, mentorship, or exposure to funds management.
The KPSF intends to benefit future start-ups owing to their 20% commitment to the pool and responsibility for loan administration and repayment. For the times ahead, the notion will be reproduced again and again. In October 2021, KPSF will distribute its second round of funds for the sustainability and prosperity of startups in Khyber Pakhtunkhwa.