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In our report on the evolution of the Saudi startup ecosystem, we looked at who has supported the most Saudi-based startups: the pioneers who are currently creating the Saudi startup ecosystem. This article introduces the most active Saudi investors, from venture capital (VC) firms to leading accelerator and incubator programs.
You may be wondering what an “active” investor is. We define and measure “active investors” based on the number of local Saudi startups in their portfolio. For the purposes of this ranking, we also count import start-ups (such as Tracker) whose headquarters are located outside the Kingdom but have significant operations within the country. All data in this article was obtained and verified by Lucidity Insights directly from VC and is through the end of October 2022. To be considered an active Saudi startup, a startup must either be locally grown (i.e. incorporated in the Kingdom) or have significant operations in the Kingdom, although it may be born elsewhere. An import startup that is developing. Only investments in start-up companies that are still active are considered.
When considering the data below, we find that the majority of venture capital firms in the Saudi entrepreneurial investor environment are still operating at an early stage (seed) and a small number at a growth stage (series) to suit both market maturity and needs. A) You should consider your investment focus. market. The VCs mentioned here are examples and are not exhaustive. In fact, there are over 65 active VCs registered in Saudi Arabia.
Also, because the ticket size is quite large, investors who focus on early-stage investments will invest in more startups, and investors who focus on later stages will invest in fewer startups. It is also important to note that it is common. The more mature the startup, the higher the value. So the thing to note here is that from that perspective, this is not a ranking. Different investor models cannot be compared. Accelerators and incubators that bring out hundreds of startups every year can’t compare to venture capital firms that only invest in a small number of high-quality startups each year and nurture them with dedicated attention. Each investor business model has its place and benefits for startup founders.
This list below has been compiled for (Saudi) startup founders to know in order to assess their impact on the cap table in case they may approach them in the future . As for who does the most business in Saudi Arabia, the answer is clear. Wa’ed Ventures invests in Saudi Arabia’s most local startups, and as of October 28, 2022, his portfolio includes 43 companies. 500 Global follows with his 38 investments, followed by Impact46 and King Abdullah University of Science and Technology (KAUST) Innovations Ventures. They ranked third with 27 Saudi startups in their respective portfolios.
#1: Waed Ventures
Wa’ed Ventures is a local venture capital firm that supports local startups in Saudi Arabia. They have a sizable portfolio with 43 Saudi startups going public.
Wa’ed Ventures is the VC arm of Saudi Aramco with a $500 million venture fund to invest in the next generation of innovative startups leveraging disruptive technologies. Wa’ed Ventures sees entrepreneurs as their (and other his VC’s) greatest assets. They aim to partner with passionate entrepreneurs who disrupt traditional industries through innovative ideas. The company is one of the most active investors in the region, investing over $100 million in 2022 alone.
Wa’ed Ventures was one of the earliest entrants in the Saudi venture space and quickly outpaced the market rhythm in adopting a risk-tolerant, thematic investment approach. The fund aims to build long-term partnerships in which Wa’ed Ventures actively participates in subsequent funding rounds, becoming the partner of choice for founders and driving regional economic growth and diversification. Masu. Wa’ed Ventures invests in startups from early seed stage to mid- and late-growth stages with ticket sizes up to $20 million.
Wa’ed Ventures is a sector agnostic fund. But as a technology-focused investor, technology is still a key element behind the startups we invest in. Specifically, the company is looking for technologies that demonstrate broad application, geographic adaptability, and strategic relevance to Saudi Aramco as well as Saudi Aramco.
#2: 500 global
500 Global operates in an accelerator and incubation model, investing directly in 38 portfolio companies in Saudi Arabia.
500 Global is a global venture capital firm focused on technology and innovation and investing across stages. 500 Global has invested in MENA through several funds, including 500 Falcons and Riyadh-based Sanabil 500 MENA Seed Accelerator Fund, serving entrepreneurs across the region. 500 Global has invested in a further 38 startups in Saudi Arabia.
As Amal Dokhan, general partner of 500 Global MENA, explained, 500 Global does make direct investments and the company is starting to see an increase in requests for Series A investments in the Kingdom and the wider MENA region. Mr. Dokhan is also responsible for overseeing the Sanabil 500 MENA Seed Accelerator program and fund. The joint accelerator program with Sanabil, a Riyadh-based VC, has also made investments other than accelerators, resulting in seven direct investments to date.
#3: Impact46
Impact46 is 27 companies disclosed their local portfolio companies in Saudi Arabia.
Impact46 is an asset management and advisory firm founded in 2019 with a focus on alternative investment opportunities.
The company’s name comes from Riyadh, the city where Impact46 is based, located on Earth’s 46th longitude. Within a few years, Impact46 has made a name for itself primarily by investing in Saudi startups (27 of its 33 portfolio companies are Saudi startups), and has already completed three successful Jahez exits. (Jahez held its initial public offering (IPO) in 2016). Unicorn status in 2021), Tamara, Lendo.
Basma Al-Sinaidi, Partner at Impact46, explained that when Impact46 launched its first seed stage fund in 2019, the initial goal was to dedicate 70% of the fund to Saudi startups. Currently, nearly 90% of his Impact46 funding goes to Saudi-based startups. The rest went to startups in the UAE and Egypt.
Al-Sinaidi further explained that Impact46 is sector agnostic but follows a “unicorn replication strategy” to de-risk its investments. Therefore, Impact46 has invested heavily in fintech, marketplace solutions, and on-demand services, following the universal unicorn trend. “We support Asana, Stripes and PayPal in the Saudi market,” Al-Sinaidi said.
#3: KAUST Innovation Ventures
KAUST Innovation Ventures has 27 local portfolio companies disclosed in Saudi Arabia.
KAUST Innovation Ventures supports the university’s pipeline of deep technology-based startups. We are also investing in well-known international technology companies that wish to establish operations in Saudi Arabia and benefit from synergies with KAUST.
KAUST Innovation Ventures manages a portfolio of its own KAUST spinouts and spin-ins of international deep tech startups. The fund aims to grow the innovation and technology investment community and attract foreign investors and venture capital to the emerging Saudi technology ecosystem. We then become a long-term strategic partner to these ventures through seed and early-stage investments. Startups are handpicked through entrepreneurship programs such as Taqadam and Destination Deep Tech.
Hattan Ahmed, Director of Entrepreneurship at KAUST, said there is a lot of open space for deep tech funding in Saudi Arabia, with significant growth in the fintech, software as a service (SaaS) and e-commerce sectors over the past few years. I think there has been growth. , there is still a huge gap in deep tech investment.
#Four: raid ventures
Raed Ventures has 20 publicly traded portfolio companies in Saudi Arabia.
Raed Ventures is an early and growth stage venture capital firm founded in 2015 in Riyadh. Raed Ventures partners with great founders building innovative companies in the MENA region. The company is also the first private VC established in Saudi Arabia in 2015. Of the 39 companies, 20 are based in Saudi Arabia. Raed Ventures has successfully exited five of his projects so far, but he has not yet been removed from the Saudi startup roster.
#Four:Vision Ventures
Vision Ventures has 20 local portfolio companies disclosed in Saudi Arabia.
Vision Ventures (VV) is a VC firm by entrepreneurs, for entrepreneurs. Its team is made up of former founders and is on a mission to help founders succeed. VV invests in early-stage technology startups in seed and Series A funding rounds. Vision Ventures is a sector-agnostic VC firm with particular interest in the cloud, SAAS, cybersecurity, and fintech sectors.
Since its founding in Dammam in 2016, Vision Ventures has invested in 47 companies, 20 of which are based in Saudi Arabia. The company has had three successful exits to date, including MENAbytes, POSrocket, and Munch:On.
Vision Ventures was formed in 2016 to diversify parent company Sahara Net’s business, which had relied heavily on internet services. In 2018, VV transitioned from a corporate venture capital to a general/limited partner structure and became an independent, privately owned venture capital firm.
Vision Ventures has closed over 86 deals and built a portfolio of 44 startups. 20 of them are Saudi companies, more than half of which have been invested in the past 24 months. Kais Al Essa, founding partner and CEO of Vision Ventures, said early-stage startups find VV’s experience and advice in the region extremely valuable to them and are often critical to their success and growth. Vision explained that it focuses on early-stage startups. We support startups from pre-seed stage to Series A stage.
#Five: STV
STV has 19 disclosed portfolio companies in Saudi Arabia.
Founded in 2018, STV is the largest privately held technology VC investment firm ever established in the Middle East. With over $800 million in capital, STV supports and scales the region’s most exciting and disruptive technology companies, primarily focused on growth-stage technologies. Nineteen of STV’s 29 portfolio companies, and more than two-thirds of STV’s transactions, are tied to start-ups with significant operations in Saudi Arabia.
STV believes that there is a strong and growing dichotomy between digital supply and digital demand in the MENA region. Areas where supply does not yet meet demand are called “white spaces.” “We identify these white spaces and invest in companies that we believe will be leaders and future market champions in these segments,” said Abdulrahman Tarabzouni, Founder and CEO of STV. We are pursuing our ambition to build and scale the region’s leading company.” For technology companies, STV remains series and technology sector agnostic. ”
STV is currently raising a second fund to replicate the same investment strategy as the first fund.
#6: Hara Ventures
Hala Ventures has 14 local portfolio companies disclosed in Saudi Arabia.
Hala Ventures is a Saudi VC firm that began operations in 2014 under its affiliate Financial Horizon Group as a corporate fund investing in various asset classes, including venture capital. Hala Ventures was then founded in 2018 as an independent VC firm with offices in both Khobar and Riyadh. Currently, 37% of Hala Ventures’ portfolio companies are based in Saudi Arabia, with 10 of his deals concluded within the kingdom to date. To date, the company has successfully completed three exits, only one of which involved a Saudi-based startup.
Click here for details of most notable Venture capitalists in the Saudi startup ecosystem should check out this report. Evolution of the Saudi startup ecosystem 2010-2022.
This article was first published clarity insightEntrepreneur Middle East’s partner in the development of a special report on the technology and entrepreneurial ecosystem in the Middle East and Africa.
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