Saudi Venture Investment Capital Launches Accelerators Funds, Start-up Studios Products

The Saudi Venture Capital Company announced the launch of the investment products, in accelerators funds and start-up studios, as part of the fund investment program; to promote the building a generation of start-up companies, that can rapidly grow.

The products in accelerators funds and startup studios come from the company to support investment, in the seed and pre-seed stages, in which the risk is high.

That falls an effort to fill a funding gap resulted from the focus of venture capital funds and investors to mainly and only fund start-up companies, from early to advanced stages.

The investments of the Saudi Venture Investment Company in funds and emerging companies exceeded SR1.1 billion, while the number of venture investment funds and growth funds, in which it was invested reached 20, since the start of the company’s business until the end of the third quarter of 2021.

The venture capital system, in the Kingdom, has witnessed rapid growth over the past few years, as a result of the emergence of many innovative entrepreneurs, venture capital funds, and angel investor groups, in addition to the availability of a sophisticated regulatory and legislative environment, supported by effective government programs.

Magnet’s Venture Investment Report for the first half of 2021 revealed that the volume of venture capital investment in the Kingdom, increased by 65%.

The report indicated that Saudi Arabia achieved record levels in the value of venture capital, during the first half of 2021, as it accounted for 14% of the total value of investments granted in the Middle East and North Africa (MENA) region, which led to the Kingdom’s rise to second place, in terms of the share in the total value of venture capital, across MENA, acquiring 22% of the total deals, in the region.