The “Investment in Accelerator Funds and Startup Studios Funds” by SVC
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The Saudi Venture Capital Company (SVC) announced the launch of the "Investment in Accelerator Funds and Startup Studios Funds" product, as part of the Investment in Fund Program, to enhance the deal flow creation of high-growth startups.
The "Investment in Accelerator Funds and Startup Studios Funds" product by SVC seeks to enable investment in the seed and pre-seed stages, which are high-risk stages. This product also aims 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.
The venture capital ecosystem in Saudi Arabia has witnessed accelerated growth over the past few years, as a result of the emergence of innovative entrepreneurs, venture capital funds, and angel investor groups, in addition to the availability of a sophisticated regulatory and legislative environment supported by effective government programs. According to the Q3 2021 KSA Venture Capital Report, startups in Saudi Arabia raised $205M in Q3 2021, 439% more than the same period year-over-year. With this, total VC investment touched $376M in 2021 YTD, already more than double of what was accumulated in FY' 2020. By end of Q3 2021, SVC’s investments in funds and startups exceeded $293M (SAR 1.1 Bn). SVC has invested so far in 20 venture capital and growth capital funds.
Saudi Venture Capital Company (SVC) is a Government VC established in 2018 by Monshaat as part of the Private Sector Stimulus Program (PSS) to stimulate venture investments in funds as well as co-investing with angel groups for the primary goal of minimizing equity financing gaps for startups by investing $750 M (SAR 2.8 Bn). Their programs consist of two main elements across industries: Investment in Funds, investment in Venture Capital, and Growth Capital funds to catalyze venture investments and minimize the fund-raising entry barriers for fund managers who are looking to operate in the VC and Growth Capital markets. Co-Investment in Startups, co-investing with angel investors and institutional investors in startups with high-growth potential.
So far this year, SVC has participated in stellar fundings on both fronts, expediting Saudi Arabia’s “fourth industrial revolution” and general technological advancement. On the startups front, SVC participated in KSA’s most recent Megadeal with Unifonic, creating cloud-based solutions for efficient business communications. SVC also participated in a series of SEED & Series A rounds backing the likes of Salasa, Bonat, and Ehsibha. On Funding of Funds, SVC has taken major strides this year driving capital growth of innovative funds like Hambro Perks Oryx Fund and Access Bridge Ventures.
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