The latest report issued by the Saudi Venture Capital Company, which highlighted the impact of its business on the venture investment system in the Kingdom since its establishment, revealed its contribution to achieving record growth rates in all indicators related to the sector.
The company’s report indicated that Saudi Arabia achieved a growth of 124% in the total value of investments to reach 570 million riyals in 2020, compared to 255 million in 2018, in which the Saudi Venture Investment Company was founded and launched.
The report also revealed that the number of investors in Saudi startups increased by 81%, to reach 47 compared to only 26 in 2018, and the number of deals grew to 88 deals in 2020, achieving an increase of 54% over the base year, 2018, in which the sector recorded 57 deals.
The report stated that the total investments of the Saudi Venture Investment Company through all its programs amounted to 1.017 billion Saudi riyals, while the total investments, including partners, were estimated at 4.26 billion riyals. The number of funds in which the company invests has reached 17 funds that have invested in 63 Saudi emerging companies through 88 deals so far.
Note that the funds’ investment period is up to five years, and it includes several sectors such as e-commerce, financial technology, information technology solutions and technology, education, delivery and transportation.
The report shows the success of the company’s strategy over the past two years in increasing the number of investors in Saudi startups, encouraging existing and new financial companies to establish funds specialized in venture investment, contributing to bridging financing gaps, and incentivizing current angel investors to invest in emerging companies.
The CEO of the Saudi Venture Capital Company, Dr. Nabil Koshak said that the Kingdom is witnessing a significant growth in investment in startups that are capable of rapid growth and are able to expand locally and globally.
Koshak affirmed that the company is keen to develop the system of venture investment in Saudi Arabia, by supporting the establishment of funds and motivating investors to invest in emerging companies, thus contributing to the diversification of the Saudi economy and enhancing local content.
Noteworthy, Saudi Venture Investment Company was established in late 2018 as a Saudi government company with a capital of 2.8 billion Saudi riyals to implement the government venture investment fund initiative established by the Public Authority for Small and Medium Enterprises “Monshaat” as one of the initiatives to stimulate the private sector.