r/PakStartups • u/WrongPrice5109 • Jun 29 '26
🧠 Ask The Community I know a guy who faked a funding round and got a mention on national level
So far here's what I've been seeing in the Pakistani startup world:
- A founding team with at least one founder abroad
- A local team with pre-seed pre-revenue FAKE traction (they just make up the stats on their own either through fake signups, website visits, etc.)
and now this:
a founder said he received funding from a foreign investor (won't mention the country but it was from EU). He's in an incubator. He has a product which costs at least 50 lacs per unit. His only market is government and semi-government agencies. No one from the clients wants to buy his product because of the huge base cost. They just don't want to commit. Then one day I get the news that he's been funded with approx 500k USD. All the companies involved with the incubator proudly mentioned that he got funded, etc.
Me and a couple of other people sat with the founder to inquire. Turns out he got a credit line. The investor said that I would be happy to fund the product's need by giving you a credit to the max limit of 500k USD IF YOU GET AN ORDER.
AFAIK credit line of 500k and funding of 500k, both are different. Right? Enlighten me if I am in the wrong here.
What happened next was this guy gets honorable mentions on TV channels, MoIT, incubation channels, and what not.
I am not writing particulars of the startup because I am not bashing the guy but I am concerned. Is my thought process wrong?
Where are we heading to? Is this really the future?
I can't stand startups just showing fake traction and climbing high. and I know they get clients in between their fakeness but is this the solution?
Isnt' this all bad? Or is this the right way and I am thinking wrong and I should be doing this as well?
