RIYADH: As part of its commitment to minimize financing gaps for startups, Saudi Venture Capital Co. has invested SR112.5 million ($29.9 million) in IMPACT46 Fund III.
According to a press release, the move is designed to empower late-stage companies in the region by investing in growth and pre-initial public offering phases.
A late-stage company is a business that has been in operation for a few years and has demonstrated viability.
The release added that the trust will aim to allocate a specific amount for early-stage startups, focusing primarily on seed rounds in the broader Middle East.
“The investment in IMPACT46’s Fund III falls under the company’s fund investment program, which aims to enhance the growth of the venture capital ecosystem for startups in the Kingdom across all stages and sectors,” said SVC CEO Nabeel Koshak in a statement.
“This is in line with the growth witnessed by the venture capital sector in the Kingdom over the past years, making it a leader in venture capital in the Middle East and North Africa in the first half of 2023 in terms of invested amounts,” Koshak added.
The Kingdom clinched the top spot in venture capital value for the first half of 2023, registering investments that surpassed $446 million, the highest in the MENA region.
“We are delighted that SVC and IMPACT46 are once again joining forces, this time with our Fund III, which aims to support the growth of the tech startup ecosystem in Saudi Arabia. This partnership demonstrates our commitment to achieving our shared vision for driving a sustainable economic impact,” said IMPACT46 CEO and Founder Abdulaziz Al-Omran in the statement.
“This investment not only signifies the growing maturity of the VC activity in Saudi Arabia but also highlights the Kingdom’s potential to emerge as a frontrunner in this sector,” Al-Omran added.
Founded in 2018, SVC operates under the umbrella of the SME Bank and the National Development Fund.
SVC has channeled its resources and efforts toward empowering startups with an investment portfolio that boasts $2 billion.
The company’s reach encompasses 43 investment funds and over 700 startups and small and medium enterprises, firmly positioning itself as a catalyst for entrepreneurial growth.
Furthermore, IMPACT46 is a Saudi-based venture capital company that invests from seed-stage startups to more mature businesses.