The Kingdom's Venture Investment Report revealed that the first half of 2021 witnessed the implementation of investments worth a record SAR 630 million in Saudi startups, achieving a growth of 65% compared to the first half of 2020.<The report released today by MAGNiTT, a startup VC data platform sponsored by the Saudi Venture Investment Company (SVC), established by the General Authority for Small and Medium Enterprises (Monsha'at), confirmed that although 2020 was a positive year for VC investment in the Kingdom, 2021 saw even greater flows, with the value of VC investments executed during the first half of the year setting a new record, equivalent to 94% of the total funds invested in Saudi startups in 2020.
The Kingdom moved from third to second place among MENA countries in terms of total VC value, accounting for 14% of the total investment value and 21% of the number of deals in the region.
The first half of 2021 saw VC investment in fintech startups grow by 17,00% compared to last year, with fintech and food and beverage startups together accounting for 44% of investments, while nearly three-quarters of the investors who invested in Saudi startups in the first half of 2021 were from within the Kingdom.
The Governor of the General Authority for Small and Medium Enterprises (Monshaat) and Chairman of the Board of Directors of the Saudi Venture Investment Company, Engineer Saleh bin Ibrahim Al-Rasheed, emphasized Monshaat's interest in providing services, programs and initiatives to support entrepreneurs and SMEs to enhance their growth and competitiveness, including stimulating the financing environment for startups and SMEs in the Kingdom and covering the current financing gaps.
Engineer Al-Rasheed explained that the establishment of the Saudi Venture Investment Company in 2018 directly contributed to the development of the venture capital system by stimulating investment in investment funds and investment in partnership with angel investor groups.<For his part, Dr. Nabil Koshak, CEO of the Saudi Venture Investment Company, noted that the Kingdom is witnessing a growth in the volume and quality of startup deals, in addition to the emergence of increasing numbers of venture funds and angel investor groups.He added that the Kingdom has witnessed record increases in venture investment over the past years, and many new initiatives have been launched recently to stimulate venture investment and startup growth, as part of the Kingdom's Vision 2030, expressing his pride in seeing distinguished entrepreneurs establishing startups capable of rapid and significant growth.
The Saudi Venture Investment Company is a government company established in 2018 by Monshaat as part of the Financial Sector Development Program. The company aims to develop the venture capital ecosystem by raising SAR 2.8 billion ($750$ million USD).
Saudi Venture Investment Company (SVC) is a government company established in 2018 by Monshaat as part of the Financial Sector Development Program.
