The UAE-based fintech fund VentureSouq announced it secured a US$5 million investment from Saudi Venture Capital (SVC) in order to support early-stage fintech startups.
The SVC’s goal is to support financing for startups and SMEs from pre-seed investment to pre-IPO by injecting $2 billion through investment in funds and co-investment in startups.
SVC invested in 43 funds that have financial support in 700+ companies.
Nabeel Koshak, CEO and Board Member at SVC commented: “The investment in the fintech fund by VSQ is part of SVC’s Investment in Funds Program to support the development of the VC ecosystem in Saudi Arabia for all sectors and stages.
This investment also boosts the growth witnessed recently by the fintech sector, which made it at the front of the venture capital scene in Saudi Arabia in 2022 according to the number of deals and value of investment.
Koshak added: “This growth is driven by the launch of many governmental initiatives that support the fintech sector, such as the “Saudi Fintech” initiative launched by the Saudi Central Bank in cooperation with the Capital Market Authority.”
General Partner at VSQ, Maan Eshgi, commented: “Fintech continues to be one of the largest, most dynamic, and most consequential spheres of innovation in the world. It serves the application of new technologies, including web3, AI, and quantum computing. From a magnitude of impact standpoint, we see Saudi Arabia leading the MENA region in Fintech. We are honored and thrilled with the continued trust of SVC, who has been a partner with VSQ for many years.”
SVC is a government investment company formed in 2018 and is a subsidiary of the SME Bank, one of the developmental banks affiliated with the National Development Fund.
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