By Aitizaz Hassan ISLAMABAD, April 11 (INP-WealthPK): Pakistan startups have raised $147 million from international investors during 2021. As many as 37 international investors joined Pakistan startup market last year, showing a 122% increase as compared to 2020. Notable international investors, including Tiger Global and Kleiner Perkins, made investment for the first time. According to Pakistan Startups Ecosystem Report 2021 by Invest2Innovate startups consultancy firm, international investors contribute 40% to Pakistan startups, and registered 55 deals among a total of 83 during 2021. The deal marks the amount invested and what the investor gets in return. The report said that the number of international angel investors has grown from just five in 2015 to 37 in 2021, which shows 640% growth in six years. However, international investment faced a dip from 2017 to 2019, which can be attributed to a brief slowdown in the overall funding landscape. The report said that recent years have seen an increasing shift in how investors in developed economies have sought to increase their holdings to emerging and frontier markets such as Pakistan. The country has thus gained rapid relevance among international investors, especially over the past two years. The startups raised a total of $350 million via 83 deals in 2021, and 60% of all deals were completed within the past seven years. Famous international investors, such as Tiger Global, Kleiner Perkins, Firstminute Capital, and Hustle Fund made their first investments in Pakistan in 2021. Due to international participation in Pakistani businesses, a new breed of startups led by more seasoned founders has emerged. Pakistani startups are also digitizing agriculture, logistics, and financial services. The report said that investors from China and East Asia remain more enthusiastic about Pakistani startups market. The demographics of Pakistan attract international business community. 64% of the country’s population under the age of 30 is a real desirability of international market. More home-growing startups are building the confidence of international investors. According to Invest2Innovate report, the risks factor of Pakistani markets can be partially mitigated by comparisons with other counterparts. For instance, CreditBook, DigiKhata, and Udhaar Book can be assessed against Khatabook in India or BukuKas in Indonesia, the latter of which reportedly hit a valuation of over $30 million this year. Zarya, which raised a $1.7 million pre-seed round in November 2021, can be compared to India’s Meesho, which was valued at around $8 billion. Comparisons such as these have helped international investors enter Pakistani market. In the context of Pakistan, the founders of Pakistani startups with higher education from an international institution are more likely to raise successfully, and bring bigger investments, as compared to startups’ founders with local education. A survey in the report showed that 65% of respondents agreed that the lack of laws allowing for the seamless inflow of foreign investment capital into the country is an obstacle. Additionally, 59% of those surveyed thought that the lack of appropriate international investment-friendly legislation and processes poses a barrier for both local and international investors.