112.5 million riyals.. Investments of the Saudi Venture Capital Company (SVC)

The Saudi Venture Capital Company (SVC) revealed its intention to invest about 112.5 million riyals in the third “IMPACT46” fund, with the aim of enhancing the growth of the venture investment system in emerging companies, and strengthening the venture investment sector in the Kingdom.

In this context, the CEO and member of the Board of Directors of the Saudi Venture Investment Company, Nabil bin Abdul Qader Koshak, said that investing in the third IMPACT46 Fund comes within the fund investment program implemented by the company to enhance the growth of the venture investment system in emerging companies in the Kingdom for all stages and sectors.

Koshak added that this investment also aims to enhance the growth witnessed by the venture investment sector in the Kingdom of Saudi Arabia during previous years, which made it led the venture investment scene in the Middle East and North Africa region during the first half of 2023 in terms of the volume of amounts invested.

It should be noted that the Saudi Venture Capital Company (SVC) announced earlier that it had invested 28 million riyals (or the equivalent of $7.5 million) in the Endeavor Catalyst IV debt fund to expand venture investment in emerging companies. It is noteworthy that this fund is affiliated with Endeavor Catalyst, which is the investment arm of the American investment company Endeavor Global, which is concerned with financing emerging companies in the initial and advanced stages.

Saudi Venture Investment Company

The Saudi Venture Investment Company is a government company. It is one of the private sector development initiatives and is implemented by the General Authority for Small and Medium Enterprises (Monshaat) and the Local Content and Private Sector Development Unit (Nama).

Company objectives

The company aims to contribute to the growth and diversification of the Saudi economy, in addition to enabling and supporting small and medium enterprises and encouraging them to explore new fields, and to graduate more entrepreneurs in several ways, one of which is providing the necessary support and investment in small and medium enterprises.

Investment methods

It is a direct investment, in partnership with individual investors, venture funds and experienced investors.

Investing in funds

Investing in venture capital funds, to help stimulate and establish them, giving them the ability to invest in emerging companies during their various stages of growth.

Investments exceeding $446 million

Reports revealed last July that Saudi Arabia topped its counterparts in the Middle East and North Africa region as having the highest value in terms of venture investment during the first half of 2023, which witnessed investments exceeding $446 million (1.67 billion riyals).

It is worth noting that “Saudi Venture Capital” is a government investment company established in 2018 AD, affiliated with the Small and Medium Enterprises Bank, one of the development banks affiliated with the National Development Fund, with the aim of stimulating and sustaining financing for emerging companies and small and medium enterprises from the pre-establishment stage to the pre-IPO. To go public, by investing in funds and investing and participating in emerging companies, by investing two billion US dollars (7.5 billion riyals).

The number of funds in which the company invested reached 43 investment funds, while the number of emerging companies and small and medium enterprises reached more than 700 companies.