Saudi Venture Capital and Flat6Labs have teamed up to launch a $40 million startup seed fund.
During the next three years, the fund aims to back startups with growth potential, and provide over 20 startups each year with seed capital.
The fund’s size, which is around SR150 million ($40 million), will be utilized in the investment of early-stage startups operating in the technology and innovation sectors within Saudi Arabia.
Investment per company will range between SR750,000 and SR1.5 million.
The fund will also offer what is known as the Flat6Labs Riyadh Seed Program, which aims to help entrepreneurs to further develop their business skills, build their products, test market fit, enhance business models, and pitch to external investors.
“This startup seed fund was developed to foster the growth of the venture capital ecosystem in Saudi Arabia at all stages, in an effort to fill a funding gap that resulted from the focus of venture capital funds and angel investors on investments beyond the seed stage,” a statement said, citing Nabeel Koshak, CEO of SVC.
The fund has a vision to help an estimated 180 entrepreneurs, create over 6,000 jobs in the Kingdom’s private sector, and facilitate the expansion of Saudi firms in the region.