The Saudi Venture Capital Company (SVC) has announced its investment in the Global Ventures Third Fund, a $150 million initiative targeting early-stage startups. Managed by Global Ventures, the fund focuses on technology-driven sectors across Saudi Arabia, the Middle East, North Africa, and Sub-Saharan Africa. Key areas of investment include supply chain technologies, agricultural tech, enterprise cloud solutions, and cutting-edge fields such as artificial intelligence and deep technologies.
A Strategic Commitment to Growth
Dr. Nabeel Koshak, CEO of SVC, emphasized that this investment aligns with the company’s strategy to bolster early-stage startups in Saudi Arabia. “Our investment in the venture fund managed by Global Ventures is part of our broader program to support funds investing in Saudi startups, particularly during their early growth stages,” Dr. Koshak stated.
This initiative underscores SVC’s commitment to fostering innovation and creating a vibrant entrepreneurial ecosystem in the Kingdom.
Venture Capital in Saudi Arabia: A Growing Landscape
Saudi Arabia’s venture capital market experienced notable growth in the first half of 2024, solidifying its position as a leading investment hub in the MENA region. Despite global economic challenges, the Kingdom demonstrated resilience, achieving remarkable milestones in the venture capital sector.
A report by MAGNiTT, supported by SVC, revealed that Saudi Arabia attracted $412 million (1.5 billion SAR) in venture capital funding in the first six months of 2024. This accounted for 54% of the total investments in the MENA region, up from 38% during the same period in 2023.
Regional Trends in Venture Capital
The broader MENA region also witnessed an uptick in venture capital activity. In November 2024, 40 new funding deals were announced across six Arab countries, marking a significant increase compared to previous months. The total value of these deals reached $230 million, reflecting growing investor confidence in the region’s startups.
This surge highlights the region’s potential as a promising market for long-term investments. Factors driving this growth include increased awareness of the importance of startup investments, improved regulatory frameworks, and proactive government support for entrepreneurship.
About SVC and Global Ventures
Founded in 2018, SVC operates under the Small and Medium Enterprises Bank, aiming to promote sustainable funding for startups and SMEs from pre-seed to pre-IPO stages. The company invests in funds and directly supports startups to ensure a thriving entrepreneurial landscape.
Global Ventures, on the other hand, is a leading venture capital firm specializing in emerging markets. With investments in over 60 companies across 10 markets, the firm brings extensive expertise and resources to the region’s startup ecosystem.
This partnership between SVC and Global Ventures marks a pivotal step in driving innovation and supporting the next generation of entrepreneurs in Saudi Arabia and beyond.
