The Saudi Venture Capital Company (SVC) is a government company established in 2018 by the Small and Medium Enterprises General Authority (Monsha'at) as part of the Private Sector Stimulus Program to develop the venture investment system in the Kingdom with a capital of SAR 2.8 billion.
The company stimulates venture investment through two main programs: first, investing in funds, to stimulate the establishment of funds that invest in start-ups and SMEs in their various stages of growth, and encourage investment funds to provide added value to startups and SMEs in the Kingdom, so that the company's participation in the funds as a maximum is 65 percent of the total size of the fund, which is the maximum participation rate of government entities, including the contribution of the Saudi Venture Capital Company.
It also includes fund investment, venture capital funds, accelerator funds, startup studios, private equity funds, venture capital funds, and private debt funds.
Co-investing in start-ups
The second program of the Saudi Venture Capital Company (SVC) is to invest in fast-growing startups, in partnership with institutional investors (such as those who finance start-ups or early-stage companies in exchange for a 30 percent equity stake, using secure payment guarantees), with the aim of filling funding gaps in the seed stage in order to support investments in startups in the Kingdom and promote their growth, provided that the headquarters of these companies or their main operations are within Saudi Arabia, and the minimum investment is SAR 100,000 and the maximum is SAR 1 million.
Evolution of venture capital in the Kingdom
In line with the establishment of the Saudi Venture Capital Company (SVC), the development of venture investment in the Kingdom. In 2022, investments with a record value of 3 billion and 701 million riyals ($987 million) in Saudi startups, achieving a 72 percent growth compared to 2021, and a new record investor participation record of 104 investors. The number of investors increased by 30 percent compared to 2021. The number of exits for startups doubled compared to the previous year with a total of 10 exits.
The Kingdom achieved the highest growth rate for venture investment in 2022 compared to other countries in the Middle East and North Africa. It maintained its position as the second largest market in terms of the size of venture investment among the countries of the region, accounting for 31 percent of the total amounts invested in the region, compared to 21 percent in 2021.
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