In 2016, the world of incubators and accelerators broke the surface in Pakistan. Small businesses were cropping up regularly, owing to platforms that helped them actualize the ideas that were being visualized. From Plan X, an incubator at the famous Arfa Kareem Tower, to NIC, an incubator housed in different cities in Pakistan, many young entrepreneurs were turning to these platforms in an effort to find the launching pad for their dreams. For the fresh graduate, the idea of being their boss is the dream. The rise in popularity of this dream has paved the way for incubators and accelerators to grow.
Given that the world of startups is relatively new in Pakistan, there are many individuals that do not understand the distinction between the two. The incubator is the first step in an attempt to bring an idea to life by the entrepreneur. The relationship between the two is much like the upbringing of a child by a guardian, helping and aiding it to stand on its own two feet and make rational decisions.
The incubator provides a business with an interactive process, helping the small business to deal with key issues and hurdles that they may face from the get-go. Essentially, an incubator provides the business with a working space, mentorship, training, and preliminary funding. The incubator movement has its roots in Silicon Valley’s Y Combinator, which is one of the biggest and first incubators in the world. Well-known platforms like Dropbox and Reddit found their start here.
Once the idea has solidified, and other factors such as the targeted market and audience have been outlined, the product has a firm ground to stand on. From here on, the baton is handed over to the accelerator.
The accelerator can be seen as the last rung on the ladder, providing you career counseling in essence. Many call it a ‘finishing school.’ Here, the entrepreneur is connected with businesses and players in the market that can get some use out of your product. Moreover, the accelerators function to provide the company with a type of focused training that can give the business owner an edge of sorts.
For this service, the accelerator charges the startup some amount of fees or equity charges. These tend to be short term and can play a crucial role in the survival of the startup in the business market.
Are Incubators and Accelerators enough?
The impact or the leverage that an incubator or an accelerator gives to any given startup is contingent on the quality of the team behind it. For your business to really take off, it is essential that you connect with people that understand your vision and are the ‘right’ fit for your startup.
One of the most prominent and promising incubators in Pakistan is Plan 9, based in Arfa Kareem Tower, Lahore. Ever since 2012, the platform has incubated over 100 startups. It has been under two leaderships, first under Nabeel Qadeer, during which Plan 9 rose in prominence and promoted startup culture in Pakistan. The second under Uzair Shahid, who maintained and fostered the growth of these businesses.
This startup is fully funded and managed by the Punjab Institute of Technology Board. One of the signature events for Plan 9 is Demo Day, which is a regular occurrence. It functions to spread a love for entrepreneurial pursuits. Plan 9 has also partnered with various institutions to create entrepreneurship centers.
Some of the most prominent businesses have been born in Plan 9. The first of which is Patari, a Pakistani music streaming platform. Founded in 2015, it has licenses for over 60,000 Pakistani artists and controls 70% of the music in Pakistan.
Markhor is another company that champions craftsmanship derived from passion. The company sells a variety of products, ranging from shoes to bag packs using quality leather craftsmanship. The brand has garnered a substantial consumer base and is one of the best-known startups in Pakistan.
Another notable incubator is NIC at LUMS. This operates as an incubation and acceleration program, which was launched under a public and private partnership of Telecom, IGNITE, Fatima Ventures, LUMS, and the Ministry of Information Technology.
One of the biggest businesses to emerge out of NIC is Maro Tandoors, a restaurant famously known as belonging to LUMS students. This startup has gained recognition all over Pakistan and has successfully set up a network of restaurants in Lahore. Known for creating ‘Nutella naan’ and having an innovative take on an otherwise basic delicacy – the naan – the business has thrived and remains active ever since its graduation in October 2014.
One of the biggest accelerators in Pakistan is Invest2Innovate, which is commonly known as i2i. The accelerator is data-driven and seeks to prepare individual startups for seed funding. The accelerator was founded by Kalsoom Lakhani and headed by Meenah Tariq, Fulbright scholar, and a Babson College entrepreneurial graduate.
The accelerator has notable partnerships with Acumen, NIC, and DotZero Ventures, a noteworthy section of the entrepreneurial ecosystem in Pakistan. The community of mentors, investors, and stakeholders provide unhindered access to leaders of the industry and prominent markets.
Invest2Innovate has launched doctHers, which is a digital health platform concerned with matching underutilized female doctors to the unmet needs of health consumers through technology. They provide medical education services, collaborate with corporate and NGO partners, and provide technology-based wellness solutions to corporations.
Another accelerator in Pakistan is Plan X, the counterpart to Plan 9. It seeks to finish the other half of the story – the one that comes after incubation – rubbing elbows with the people that matter. They help secure the bag and the future for the ‘chosen ones’ obtaining government backing for these.
Plan X has secured funding for Bookme.pk. A platform that enables Pakistanis to book tickets for buses or cinemas with just a few clicks. The platform was the first of its kind in Pakistan, doing away with the hassle of standing in queues.
In the last few years, incubators and accelerators in Pakistan have experienced a boom, and have proved fruitful for the lift off of several businesses. However, in the current climate – post the growth of the COVID-19 pandemic and its devastating effect on the economy – the expansion or compression of the role of incubators and accelerators is yet to be assessed.
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