Saudi Venture Capital Company (SVC) invests SAR 1.2 billion


Dr Nabeel Koshak

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Venture capital investments in Saudi Arabia have increased by 770% in three years

The Kingdom of Saudi Arabia is experiencing unprecedented growth in the quality and quantity of deal flow from startups supported by effective government programs.

— Dr. Nabeel Koshak, CEO of SVC

RIYADH, AL-RIYADH, SAUDI ARABIA, Feb. 17, 2022 / — The ‘SVC Impact Report’ released today revealed SVC’s contribution to achieving record growth rates for all VC ecosystem indicators in Saudi Arabia. The report highlighted SVC’s impact on the VC ecosystem in the Kingdom since the company was founded in 2018.

SVC’s Impact Report found that funding deployed to Saudi startups increased by 770% to a record SAR 2.055 billion ($548 million) in 2021 from SAR 236 million in 2018, when SVC started operations, according to the Enterprise Data Platform. , MAGNiTT.

The report also showed that the number of investors in Saudi startups increased by 192%, reaching 76 in 2021, compared to 26 investors in 2018. The number of venture capital deals in Saudi startups also increased by 148. %, reaching a new high of 139 deals, compared to 56 venture capital deals in 2018.

The report states that SVC’s total committed investment stands at SAR 1.2 billion, while total committed investment including partners is estimated at 6.5 billion riyals. SVC invests in 23 funds which have invested in 83 Saudi startups across 147 deals to date, including multiple sectors such as e-commerce, fintech, information and communication technology, education, delivery and transportation.

The impact report showed that SVC’s strategy has been successful over the past three years in increasing the number of investors in Saudi startups, encouraging existing and new financial companies to set up venture capital funds, help fill the funding gap in investment rounds and motivate existing angel investors to invest in startups through the angel co-investment program, as well as stimulate the creation of new angel groups in the Kingdom, which have currently reached five groups.

“The Kingdom of Saudi Arabia is experiencing unprecedented growth in the quality and quantity of startup deal flow,” says Dr. Nabeel Koshak, CEO of SVC. “This is a result of the emergence of many innovative entrepreneurs, VCs and groups of angel investors, in addition to the availability of an advanced regulatory and legislative environment supported by effective government programs.”

He further highlighted the firm’s determination to develop the VC ecosystem in Saudi Arabia by supporting the establishment of investment funds and motivating investors to invest in startups, which contributes to the diversification of the economy. Saudi Arabia and the promotion of local content.
The Saudi Venture Capital Company (SVC) is a government venture capital firm established in 2018 by Monshaat under the Financial Sector Development Program (FSDP) to stimulate venture capital investments by investing SAR 2.8 billion (750 millions of dollars).

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