DotZero launches an Angel Investment Fund for Startups

DotZero, Pakistan’s largest and the only privately funded incubator launches DotZero Ventures, an angel investment platform for early age startups. The fund has already invested in 6 companies and is now exploring more investment opportunities in startups that are in pre-revenue and early revenue phases.

DotZero Ventures launches at a point in Pakistan when there is a heated debate going on between startup founders on the lack of proper investment mechanism in Pakistan. DotZero Ventures, although based out of Karachi, will be looking for a chance to fund in startups from all over the country. The team behind DotZero Ventures comprises of seasoned entrepreneurs from Pakistan who have proved their mettle and have ample experience of running ventures based out of Pakistan.

According to the details on official website, the firm has invested in 6 startups already and is actively looking to invest in two more startups for the year 2015. Moreover, the team is also raising funds to invest in ventures in 2016. The funded ventures will not only get investment and advisory from the team but will also get a chance to setup their companies in a remarkable low time because of office space, legal expertise and other such benefits given as an add on service (with minimal charges).

If we look at Plan9 Incubator, it also had an Angel Investment Club which couldn’t really be any help to the startup founders because, apparently, the “investors” were not really impressed with the quality of startups. Now Plan9 is also working on Government backed VC fund about which we had a conversation with Nabeel A. Qadeer, Joint Director Entrepreneurship of PITB, recently.

LUMS Center for Entrepreneurship is also raising funds to formalize investments in their startups. The entrepreneurship center is also in conversation with aid programs to get support.

Coming back to DotZero, the following startups have raised seed funding amount from DotZero Ventures.

DotZero, as a curated coworking space has been supporting startups for the past 2 years. Their portfolio ranges to 50+ companies that have raised $20 million in funding with revenue generation of over $10 million. These startup companies have created employment opportunities for more than 250 engineers of Pakistan.

How to apply?

DotZero Ventures is looking for early stage companies that have developed pilot or protoptype to demostrate how their idea can produce a mass effect. The platform is looking for investment opportunities in fashion and retail, e-commerce, and internet and technology.

The investment process is stretched over a couple of weeks where startup founders are validated and their product/ service is tried by the investors. The startups will be analyzed on how ready they are to accept feedback and mentorship, co-exist as a portfolio company and most importantly how passionate they are about the venture. The process from here jumps to how much funds are required for the seed round and whether equity split and board control is mutually acceptable to all the parties involved. Once a consensus has been reached, it will take around four weeks to transfer the funds in the company’s account.

The post-investment phase comes with a lot of perks. The companies can utilize the shared office space at the DotZero and have access to their services team that includes lawyers, chartered accountants, and IT professionals. Once the startup initiates their action plan, DotZero is going to provide them a network of vendors, investors, partners and most importantly, customers.

Collaborations

DotZero Ventures has struck a deal with The Founder Institute(FI), where the top graduates will receive a pre-seed convertible note investment amount of $20,000. DotZero is also partnering with some of the key stake holders in Pakistan’s entrepreneurship sector to identify most promising startups for investment.

What do you think about this recent development?

Image Source: Paarish