Venture Capital Deals Rank 2nd to none, across MENA, set a Record 270% Increase

The outgoing Year 2021 emerged as the ever best, in terms of investment, as the number of venture capital deals have risen, setting a record at various levels, as its system, grew by 270 percent, compared to the previous year, in the Kingdom, ranking the 1^st, across the Middle East and North Africa (MENA) .

Startups succeeded in raising investments amounting to SR2.06 billion ($548 million).

The kingdom also has experienced its 1st massive venture capital deal, when the Saudi cloud-based customer service startup Unifonic raised $125 million, in funding.

The Kingdom of Saudi Arabia is classified as one of the most active markets, in the Middle East and North Africa region, in terms of venture investment, and in terms of the valuation of investments, in 2021, as it surpassed Egypt, as the latter ranked 2nd in the region.

The financial technology and e-commerce sectors were the most active in the venture capital system, in the Kingdom during 2021.

Emerging financial technology companies accounted for 19% of all transactions, while e-commerce companies accounted for 31% of venture investment funds, in the Kingdom, during 2021.

Henceforth, 2021 was a record in terms of the number of investors, as 76 investors invested in Saudi startups, compared to 50 active investors in 2020, achieving a growth of 52%.

The number of investors from outside the Middle East and North Africa reached a record level, as they represented 25% of the total investors, in the Saudi startups, during 2021, and the healthcare sector in Saudi Arabia recorded 12-fold growth, in terms of the number of deals, in 2021.

And the value of investments directed towards venture investments, in Saudi Arabia jumped by 270% during 2021, while the number of deals grew by 54% compared to the numbers of 2020.

Meanwhile, the 2nd half of 2021 was a record, in terms of the number of deals as well as the value of venture investments, and it was the best half ever.

The number of investors in Saudi emerging companies reached its highest level in 2021, whether they were from the Middle East, North Africa or outside it, and 5 deals accounted for half of the funds directed towards venture investments, in the Kingdom, during 2021.

Also as lesser as 5 deals accounted for half of the funds directed towards venture capital investments, in the kingdom during 2021.

Meantime, the growth rate recorded in 2020 and 2021, in terms of the value of venture capital, in Saudi Arabia, was the highest among the three most active countries, in the region, and the number of investors who invested in Saudi startups rose to a new record level of 76, achieving a growth rate of 52% compared to the Year 2020.

And the number of venture investment deals executed, in the Kingdom of Saudi Arabia, during 2021, represented 23% of the total number of deals registered, in the entire Middle East and North Africa region, compared to 18% in 2020.

The Saudi Venture Investment company is a government company that was established in 2018, by Monsha’at, as a part of the Financial Sector Development Program.

The company aims to develop a venture investment system by stimulating investment funds and investing in partnership with investor groups.