Dr. Nabeel Koshak, CEO of Saudi Venture Capital Company
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 Saudi Venture Capital CompanyRIYADH, SAUDI ARABIA, Jan. 19, 2022 /EINPresswire.com/ — The 2021 Saudi Arabia Venture Capital Report revealed that funding deployed to Saudi startups increased by 270% for a record SAR 2.055 billion ($548 million) in 2021 compared to 2020, while the number of venture capital deals increased by 54% year-on-year, reaching a new high of 139 transactions.
Although 2020 was a positive year for venture capital funding in the Kingdom, 2021 witnessed greater deployment of venture capital, setting new records in the amount of venture capital funding and the number transactions, according to the report published by venture capital data platform, MAGNiTT, and sponsored by the Saudi Venture Capital Corporation (SVC).
Saudi Arabia overtook Egypt to rank second in terms of funding in the MENA region, accounting for 21% of total VCs deployed in the region, up from 15% in 2020. Funding growth in Saudi Arabia between 2020 and 2021 was the largest among the three most active MENA countries.
A record 76 investors participated in deals closed by Saudi startups in 2021, up 52% from 2020. Fintech led deal activity while e-commerce startups raised the most capital in Saudi Arabia in 2021. While fintech startups accounted for 19% of all transactions recorded in Saudi Arabia in 2021, e-commerce startups accounted for 31% of capital deployed in the country during the year.
“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 the 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.
“SVC launched the Investment in Accelerator and Startup Studio Funds product earlier this year, as part of the Investment in Fund program, to enhance the creation of high-growth startup deal flow. We have also launched the “Investment in risky debt funds” product. The new products are driven by SVC’s mandate and continued pursuit to minimize funding gaps for startups.
Saudi Venture Capital Company (SVC) is a government venture capital firm established in 2018 by Monshaat under the Financial Sector Development Program (FSDP) to boost venture capital investments by investing SAR 2.8 billion (750 million of dollars).
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Venture capital investments in Saudi Arabia increased by 270% in 2021, reaching an all-time high of SAR 2,055 B Economy , Corporate , Conferences & Trade Shows , World & Regional
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