NIC Lahore Batch 2 – A Recap

On January 10th, the National Incubation Center Lahore hosted the second investor’s summit for the graduating batch. The Summit is committed to making genuine and reliable contributions to the entrepreneurial community. NIC offers the perfect platform for networking as it brings together entrepreneurs and investors within Pakistan. The investors included 43 ventures, Fatima Ventures, Khurram Zafar, Almas Hyder, Usman Sabir, Umer Shah and several others. Each start-up was allowed 3-4 minutes to make their pitch – a fruit of their 4-month long incubation journey with the facility. The pitches included a demonstration of learnt skills, business models and financial ask.

Several raised the interest of the investors present hoping to secure a deal and promise themselves a more profitable future. NIC is a believer of providing opportunities to entrepreneurs and the investor’s summit is perhaps the most sought after event of our program.

30 start-ups were incubated in categories of Health, Education, Energy, Water and Agriculture.

Out of the 30, 15 start-ups graduated and were given the chance to present their pitches to investors.

The 15 start-ups included:

  1. Entertainment Pakistan

  2. Paycard

  3. Big Bytes

  4. MittiGhar

  5. Comic Con Pk.

  6. The Support Group

  7. Roady’s Café

  8. Mawazna.com

  9. Careerz360.pk

  10. Ilm Rohi

  11. Vceela

  12. AgriMart

  13. TrashMasti

  14. Home Innovation and

  15. RADA Technologies

Design Thinking

The graduation marked the end of a 6-month long journey inclusive of training sessions and one-on-one mentor-ship. Every start-up was given the opportunity to start their journey with a ten-day entrepreneurial development program. Soon after, they attended a 5-day workshop with the internationally acclaimed Shahid Khan and his design thinking workshop.

Industry Tour

The start-ups were also given a chance to visit the industry and learn from entrepreneurs in the business world, first hand. During the 3-day industry tour they interacted with and sat in sessions conducted by names like Daftarkhuwan, Fatima Ventures, Shakarganj and others.

Mentor-ship

Apart from the above events, the start-ups were regularly exposed to international and local mentors who provided them insight into the many facets of the entrepreneurial world so they may be equipped to step out. They attended sessions with lawyers, marketers, Silicon Valley entrepreneurs, social media experts, website designers, investors and financial leads so that the start-ups may understand the many branches of their business and cater to them all, effectively.

What we Stand For

NIC Lahore believes in ensuring that the very best deal is provided to the start-ups. To ensure a decent impression is made, the 6-month long journey was tiresome indeed but productive for those who served the purpose well, invested their energies and were dedicated to ensure they meet the prerequisites set by the facility. Whether it was a 5-year plan or the drafting of an investment brief, the highly acclaimed trainers of NIC Lahore equipped all the start-ups to the best of their abilities before they were given the floor to make their pitches to potential investors.

NIC Lahore believes in providing opportunities to the start-ups to the best of its abilities. The investor’s summit marks the end of a start-up journey and commences the start of a business venture. We wish to continue serving the entrepreneurial community by incubating and producing more deserving entrepreneurs with revolutionary business ideas.

Dangers for Startups – Recruiting Friends as Investors

Usually when startups go into business they decide to trust their family and friends as long-term investors. Stats have reported that a huge percentage of these startups receive more than 50 billion dollars’ worth of investment from their family and friends.

On the one hand, getting your family and friends to invest in your idea is advantageous in many personal and legal elements. On the other hand, there are several factors that overrule the advantages and make recruiting family and friends as investors a step into the dangerous territory.

When family and friends invest in your startup, equity will immediately be divided to ensure equal shares. Over or under evaluation is often a possibility that can lead to legal penalties. Following are some of the things that need to be considered gravely when stepping into the dangers of recruiting relatives:

  1. The Pressure is Far Too High

If your relative wishes to invest their life’s savings in your idea, that is probably not a good idea. When you know what is at stake from the investor’s end added the personal relationship, the pressure becomes far too high. The pressure to be able to return the investment in the form of profit can drive you to take decisions that may not be fruitful in the long run thus jeopardizing the whole process altogether. A small scaled investor may not put that kind of pressure on you and often allows the startups the space needed to grow at a reasonable pace.

  1. Their Involvement May be Bothersome

When family members become investors, the boundaries get blurred. Therefore, their investment in your idea has the tendency to exceed the monetary limitations. They often require constant updates and even expect their involvement to be imperative in the decision-making process.

Even though, it is reasonable to keep them informed; their involvement in the day-to-day may become problematic. Investors with extensive experience are often allowed interference in business decisions of startups because of what they might bring to the table. Allowing relatives that level of participation can be more damaging than helpful.

  1. Strengthen the Business Idea

It is imperative that your business plan be a strong one, especially when dealing with relatives. Often relatives don’t push us to the extreme we would like to be pushed at. They overlook loopholes an outsider investor may not. This is a deceptive fault that can be detrimental for the business when it comes to profit and longevity.

  1. Don’t promise what can’t be delivered

Just because you are excited about the venture you are endeavoring on, it does not mean you promise what you cannot accomplish. More so, when relatives invest money in your idea, they must be informed of all possible risks and downfalls. Not only is this important to ensure their expectations are not exceeded but also to ensure your relationships do not get damaged.

  1. Avoid putting relationships at stake

There is no surprise in the fact that sometimes businesses fail, and ideas do not work out as anticipated. When something like this happens, you may be unable to return the money to the investors. It is important to always anticipate a possible downfall when getting into a new business venture. Also, voice your anticipations honestly to your investors.

There are many advantages to hiring investors from the outside as opposed from within your social and familial circle. Hire a lawyer as well as they may be able to guide you better when looking for tangible and profitable investments.