Despite raising over $173m in the first quarter of 2022, the total tech investment in Pakistan throughout 2022 stood to be around $351m, which is a big slowdown
Back in 2021, the tech ecosystem in Pakistan started to grow by leaps and bounds, investments were at an all time high and went almost 5x, amounting to more than $366 million. Tech exports were also at the rise, with the country exporting over $2 billion. However the good times did not last long since 2022 showed the worst results in over ten quarters.
Tech investments were healthy during the first quarter of 2022, around $173 million were raised in just the first quarter. However, the investment went downhill from the first quarter and the total annual tech investment came down to $351 million.
So what’s exactly the reason behind this tech investment decline? For once, it is the failing economic situation of the country, but global economic slowdown and tech disruption are the major reasons behind slowed investments.
Back in 2021, Pakistan and its tech startups went onto become a favorite for venture capitalists, thus bringing the country’s tech investment total to a whopping $366 million from just $66 million in 2020. This was a big step up for startup investments in the country.
While lower than that of 2021, tech investments in 2022 are still going strong and considerably better than numbers back in 2020. The total tech investments in 2023 are predicted to be lower because of the global economic recession, however the total will certainly not be lower than that of 2020.
For startups that are in the market for a follow-up funding, such as those funded in 2021, will now see a relatively tighter and less rewarding market. These startups can receive orders that are much smaller and get lower valuations.
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