Saudi Venture Capital announces investment in a VC fund managed by MEVP to support tech startups
Saudi Venture Capital (SVC) has announced that it will invest in a venture capital (VC) fund run by Middle East Venture Partners (MEVP) to help support technology startups with high growth potential.
SVC Investment
The Middle East Venture Fund IV, with $150 million, will help tech startups grow from the early seed stage to Series A, Series B, and even IPO/exit. The goal is to build strong tech companies in Saudi Arabia and the region. The exact amount of the investment is not mentioned.
Nabeel Koshak, CEO and board member at SVC, explained that this investment supports SVC’s plan to fund organizations that help Saudi-based startups grow and reach later stages of development.
SVC is an investment company founded in 2018 as part of Saudi Arabia’s National Development Fund and a subsidiary of the SME Bank.
Key quote
“Over the past decade, we have invested more than $50 million in some of Saudi’s leading tech startups, creating over 12,000 jobs and attracting $1.1 billion in co-investments that have boosted Saudi Arabia’s foreign direct investment,” said Walid Mansour, co-founder and Co-CEO at MEVP.
Saudi VC Landscape
In the first half of 2024, Saudi Arabia led the Middle East and North Africa (MENA) region in total venture capital (VC) funding, according to a report by SVC and MAGNiTT.
During this period, Saudi Arabia received $412 million in VC funding, a 7% decrease compared to last year. The country was involved in 30% of all VC deals in the region, which is 5% higher than last year.
Fintech was the most active sector in terms of deals, while the e-commerce/retail sector received the most funding in Saudi Arabia, with two of the top five deals in the country in this sector.
Key Updates
Earlier this month, SVC announced an investment in Aliph Fund I, a growth fund focused on the Gulf region, managed by Aliph Capital. The fund invests in mid-sized companies in Saudi Arabia and the GCC, using an active ownership model.
In November, SVC invested $20 million in Booster Fund IV, a VC fund managed by BECO Capital that supports early-stage startups with potential to innovate or disrupt their industries.
In October, SVC revealed a $15 million investment in Saqr Fund II, a VC fund managed by Vision Ventures that targets early-stage startups (from pre-seed to pre-series B).
Published: 17th December 2024
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