Investments in Saudi startups grew by 244 percent to a record high of SAR 2.19 billion ($584 million) in the first half of 2022 compared to the same period in 2021.
In fact, the investments in the first half of 2022 surpassed the total investments in 2021, according to a report by the venture data platform, MAGNiTT, and sponsored by the Saudi Venture Capital (SVC).
Saudi Venture Capital (SVC) is a Government VC ($1 billion AUM) established in 2018 by Monshaat as part of the Financial Sector Development Program (FSDP) for the primary goal of stimulating and sustaining financing for startups and SMEs from pre-seed to pre-IPO through the investment in funds and co-investment in startups. Since inception, SVC has backed 30 funds and five angel investor groups that invested in 401 startups and SMEs.
The report said the kingdom advanced to become the second-most active VC market in MENA by number of deals, which rose by 36 percent to 79 deals in H1 2022 versus H1 2021, while maintaining its position as the second-most funded market in MENA over H1 2022.
A record-high of 88 investors participated in deals closed by Saudi startups in H1 2022, up 126 percent versus H1 2021, in which 42 percent of the investors were from outside the kingdom.
Dr. Nabeel Koshak, CEO and Board Member at SVC, said, “The establishment of SVC in 2018 directly contributed to the development of the VC ecosystem in the kingdom by stimulating investment in funds and co-investment in startups with angel investor groups and fund managers.