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SVC Bets on the Future of Saudi Startups

SVC Bets on the Future of Saudi Startups
Image Source: Lucidity Insight

Saudi Venture Capital Company (SVC) has invested USD 15M in Vision Ventures’ Saqr Fund II, which aims to boost early-stage startups. The fund, targeting USD 90M, will focus on investments ranging from pre-seed to pre-series B stages across various sectors in Saudi Arabia and the broader MENA region.

The new investment has targeted mainly the fintech, artificial intelligence, and e-commerce sectors. Nabeel Koshak, SVC’s CEO, emphasized that this investment aligns with their strategy to facilitate venture investments and reduce barriers for fund managers.

Enhancing Entrepreneurial Opportunities

Vision Ventures, a key player in the MENA startup ecosystem, is committed to fostering innovation and entrepreneurship. Kais Al-Essa, Founding Partner and CEO, highlighted the fund’s capacity to deliver exceptional returns while nurturing startup founders. With a sector-agnostic approach, Saqr Fund II is poised to attract high-growth startups, further contributing to the Kingdom’s economic diversification efforts.

With this investment, Vision Ventures will expand its ability to fund and mentor emerging startups. SVC’s backing ensures that local entrepreneurs gain access to necessary resources to scale their operations. According to Koshak, the investment reflects their strategy of empowering innovative, tech-driven companies that support the country’s diversification goals.

Building a Thriving Innovation Ecosystem

This investment reflects a growing trend of increased funding in Saudi Arabia’s startup landscape, which attracted USD 509M in the first nine months of 2024. The SVC’s commitment signifies a robust support system for emerging companies, which is essential for driving innovation and economic growth.

The partnership aligns with Saudi Arabia’s growing role as a regional technology hub. The initiative will not only benefit local startups but also increase investor confidence across the Middle East. By driving innovation, Vision Ventures and SVC contribute to a broader shift towards a more knowledge-based economy.

Aligning National Strategy and Startup Ecosystem

SVC’s investment in Vision Ventures reflects Saudi Arabia’s commitment to bolstering its startup landscape, particularly in tech-driven sectors. This strategic move feeds into the Kingdom’s Vision 2030, emphasizing economic diversification through innovation.

The partnership strengthens Saudi Arabia’s position as a leading player in the regional tech ecosystem, signaling a strong commitment in innovation across the Middle East and enhancing the country’s reputation as a hub for startups and venture capital investment.

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