Longtrepreneur kicked off the “Take the L” interview series with its first awaited guest. Rabeel Warraich(Sarmayacar) joined Yawar Abbas to share his long-term view on Pakistan’s burgeoning startup and venture capital sector, which according to Rabeel, has been notching its way to new heights.
Here is the conversation in an interview format between Yawar Abbas(Longtrepreneur) and Rabeel Warraich(Sarmayacar).
What brings you to Karachi?
Rabeel Warraich: “At the time of moving back to Pakistan, the idea was to base Sarmayacar in a city with commercial bustle and talent depth. To me, Karachi and Lahore were the two main economic hubs of the country. Karachi was, by far, the most prominent one. However, the poorer infrastructure in Karachi led me to base myself in Lahore, initially.”
“However, one of the fund’s larger portfolio companies has headquarters in Karachi. The notion is to be closer to the fund’s investments to avoid mistakes across the portfolio. We want to minimize the mistakes as much as possible to maximize the fund’s output.”
What does being a Pakistani mean to you?
Rabeel Warraich: “I have been lucky to study, live, and work abroad. The opportunities I have availed myself were due to my hard work and circumstances. However, I was working a high-paying job and had lucrative career prospects. What I like, I call the one thing missing from my life in the UK, was: “Apnaiyat.” That sense of belonging is what I lacked during my time in the UK.”
“Call it what you will. I wanted to return to Pakistan to give back and build something that would endure. I like challenges; repetitive and mundane routines would have bored me. I consider myself “Son of the soil.”
What are your favourite dishes in Pakistani cuisine?
Rabeel Warraich: “This is getting personal, huh.” Acha yaar! Those dishes your mother makes are the staple foods of your childhood. On Friday nights, my mother used to make dishes: Dahi Baray and Chicken Pulao. I also love “desi-aloo-qeema.” I find it tingling when someone refers to “minced meat.” I find calling Qeema minced meat quite distasteful.”
“These two are my favourite dishes in Pakistani cuisine. I am glad I got the Aloo-Qeema and food talk out early.”
Is entrepreneurship nature or nurture?
Rabeel Warraich: “Certain people have a knack for trying new things and being uncomfortable with the status quo. The ability to channel one’s internal drive also requires nurturing to polish said founders.”
“Some individuals expect a structured approach to problem-solving and clear lines of communication to perform their job. Then some are self-starters and need little to no external validation.”
What three founder traits do you look for when investing in a founder?
Rabeel Warraich: “Tenacity is an essential trait we look for in a founder. Why? Because building a business is a journey. Resourcefulness is another vital trait. You are cash-strapped when you start your entrepreneurial journey and need more resources to draw. Being able to quantify one’s scarce resource helps the founder to go a long way. The third trait that Sarmayacar looks for in a founder is being “Decisive.” When a founder faces make-or-break decisions, the ability to make tough decisions separates founders from the rest of the pack.”
What three founder traits are turn-offs for you when investing in a founder?
Rabeel Warraich: “Lack of discipline; Discipline doesn’t mean that the founders have to show up at the office at 9 am every day. By discipline, I mean a lack of respect for the resources that a founder has received to build a startup. Wastefulness doesn’t jag well with me. The biggest turn-off is “intellectual arrogance.”The founder is so intoxicated by their smartness that they refuse to listen to any prudent advice of another sane person.”
How many jobs have Sarmayacar portfolio companies created in Pakistan?
Rabeel Warraich: “Job creation is a major part of our investment thesis. Sarmayacar portfolio companies have created 100,000 jobs for Pakistan’s economy.” Job creation aims to manage the youth bulge in the country, from unemployment and the public sector to the private sector.
Considering all cultural nuances, How can Pakistan replicate “Israel’s startup ecosystem, which is called the “Startup Nation?”
Rabeel Warraich: “Israel made a concerted effort in cultivating its startup ecosystem. Israel started the “Yozma”program in 1993 when the Israeli government-funded 14 venture funds to spur the country towards risk-taking, innovation, and job creation.”
“Israel’s government opened its gate for startups to get government contracts, and market forces carried the country’s startup ecosystem further. Israel invested a lot of resources to become a master of subsectors – Cyber security sector is one in which Israel pulled its muscle to become one of the world leaders in cyber technology.”
What is your 50-year vision for Sarmayacar?
Rabeel Warraich: “My 50-year vision for Sarmayacar is that I become obsolete and the fund becomes a thriving and prospering franchise by itself. The goal is to positively impact Pakistan’s millions of people and generate unprecedented financial returns. We have been the flag bearers of establishing professional VC in Pakistan – where others can follow suit.”
What is your favourite movie?
Rabeel Warraich: “I am not a big fan of movies, but if I could name one – that would be “GodFather 3.” Fiction movies and dramas don’t appeal to me. Let’s go with GodFather because of the family values that the movie depicts.”
Which three people do you want to nominate for the “Take the L” interview series?
Rabeel Warraich:“Muneeb Maayr(Bykea) is an enduring founder, Yashir Pasha(He’s one of the smartest person in Pakistan’s ecosystem – who is part of Simpaisa). Ammar Zaeem has been a long-time friend and portfolio company founder(Revolving Games). These three founders are the ones that are indeed playing the long game without cutting corners.”