Saudi Arabia is one of the emerging entrepreneurial ecosystems in the MENA region. Driven by a new generation of entrepreneurs with enormous goals of changing the world, the entrepreneurial environment in Saudi Arabia is growing at an exponential rate and outpacing competitors all around the world. Venture capital funding have soared year-over-year, making Saudi Arabia one of the most promising and exciting startup markets. In this article, we have compiled a comprehensive list of the top VC funds and angel investors in Saudi Arabia that may be the right funding partner for you.
Topics Covered:
Why Should You Raise Funds in Saudi Arabia
Venture Capitalist Funds in Saudi Arabia
Angel Investors in Saudi Arabia
Closing Thoughts on VCs and Angel Investors in Saudi Arabia
Why Should You Raise Funds in Saudi Arabia?
Startups should consider raising funds in Saudi Arabia for the following reasons:
1. Ample Funding Opportunities:
Despite the overall global slowdown, venture capital funding in Saudi Arabia has continued to increase from year to year. In 2022, investments in Saudi startups grew by 72% to a record high of USD987 million. Amongst other Rising Star ecosystems in the local and global scene, Riyadh ranked amongst the top 10% of performers in the Rising Star Index. Furthermore, 2022 saw three separate rounds of funding exceeding USD 100 million and the largest round to date at USD 170 million. This signifies the growth potential of the venture capital sector and increased investor interest in Saudi Arabia.
2. Expanding Startup Ecosystem:
Saudi Arabia’s support for entrepreneurship has fueled its startup ecosystem and also produced its first wave of unicorns. Saudi Digital Payments Company, more commonly known as STC Pay, became a unicorn in 2020, and Jahez, Saudi Arabia's home-grown online food-delivery service provider, is the Kingdom's newest unicorn. Investors, business executives, and governments have all played a role in growing, identifying, and supporting creative enterprises. The country provides easy access to the advice, coaching, and financial assistance you need to start and build your business, with a plethora of startup incubators and accelerator programs in Saudi Arabia.
3. Supportive Government:
The Saudi Government's support and reforms are one of the biggest factors in the country's expanding startup ecosystem. The government introduced the Saudi Vision 2030 in 2016, a long-term plan to diversify the economy; particularly to have SMEs and startups generate a significant portion of the country's jobs and economic activity and encourage investment in local startups. Monshaat, Saudi Arabia's Small and Medium Enterprises (SME) General Authority, initiates projects that stimulate entrepreneurship and establishes regulations and standards in the startup and SME sectors. Monshaat also hosts Biban, the Kingdom's startup and SME forum that brings together local and international entrepreneurs, investors, and government officials to meet and exchange insights. There is also the Saudi Unicorns program, a statewide initiative that grants assistance to high-growth technology startups aiming to reach unicorn status.
Venture Capitalist Funds in Saudi Arabia
The venture capitalist funds below are actively looking for investments in promising companies throughout various stages and sectors. The stages stated do not limit the possibility of getting funding if your company is at any stage other than what is listed.
Year of Inception: 2019
Stage: Pre Seed
Focus: Sector Agnostic
Notable Portfolio: Termii, PalmHR, Aumet, Tajir, ShipBlu, GrocerApp
Nama Ventures is a pre-seed focused venture capital firm that invests in tech startups in the MENA region, particularly in Saudi Arabia. They want to be the first money in, offering the first investment check to promising ventures. They utilize the following fundamental standards to evaluate startups: complementary team with a technical cofounder, real solutions that answers to difficult challenges, and proven revenue potential.
Year of Inception: 2013
Stage: Pre Seed, Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Instabug, Hawaya, Vrapeutic, Chefaa
Flat6Labs is one of the most active early-stage venture capital firms that invests in and conducts various startup programs across the MENA region. They expanded their operations to Saudi Arabia in 2013, with the purpose of assisting Saudi entrepreneurs in effectively launching and scaling their enterprises to reach regional and global markets.
Year of Inception: 2016
Stage: Pre Seed, Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Calo, Rain, Tamara, Syarah, SocialDice, Foodics
Vision Ventures invests in and mentors aspiring founders in the MENA region to help them transform economies and improve people's lives. They back strong entrepreneurs who want to make a difference, providing hands-on support and additional management and operational advice to portfolio firms, allowing them to make better decisions.
Year of Inception: 2017
Stage: Pre Seed, Seed, Series A
Focus: Technology
Notable Portfolio: Tamara, Trukker, Pure Harvest, Lendo, 360 Vuz, Breadfast
Shorooq Partners is a premier technology investor, motivated by the desire to have a long-term impact in emerging economies. They are dedicated to establishing long-term businesses and creating value for portfolio firms by acting as real, impartial sounding board for founders and providing dedicated support staff in various key business functions.
Year of Inception: 2019
Stage: Pre Seed, Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Postpay, Data Lexing, Bondai, Raseed, Jahez, Lendo
Located on the planet's 46th longitudinal line, IMPACT 46 derived its name from the city they are situated in, Riyadh. Akin to the name, they aim to go out to the most remote areas of the Kingdom and invest in people who want to make a difference. To date, they have invested in over 35 companies totaling SAR S3.2 billion in assets under management.
Year of Inception: 2019
Stage: Pre Seed, Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Cloud Shelf, Lendo, Omniful, Tamara, Sabbar, DailyMealz
SEEDRA Ventures is an early-stage venture capital firm that is actively involved in promoting innovation and financing the development and commercialization of new products to transform the Kingdom's economy. They operate through two devices: a venture builder for pre-seed founders to collaborate and co-create companies, and a venture investment for Seed to Series A entrepreneurs.
Year of Inception: 2018
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: POSRocket, Yalla, Moonshot, Calo, RemotePass, Trukker
Khwarizmi Ventures is a venture capital firm that aims to support MENA startups and enable future-changing algorithms. They take an entrepreneur-centric approach to investments; providing access to their extensive networks, industry experience, and talent acquisition support to portfolio firms.
Year of Inception: 2016
Stage: Seed, Series A
Focus: Software Technology, IT services, Telecommunication, E-commerce, Logistics & Transportation, Retail and F&B, Manufacturing
Notable Portfolio: page365, aCommerce, Deliveree Logistics, Original Stitch, iCon
Inspire Ventures is an emerging venture capital company that invests in a diverse collection of Saudi startups and other GCC countries. They provide early to growth stage funding as well as active assistance, guidance, and access to help portfolio firms succeed.
Year of Inception: 2018
Stage: Seed, Series A
Focus: IT, AI, Marketplace, FinTech, SaaS, IoT, Big Data Products
Notable Portfolio: Caramella, Pulppo, Ogram, PalmHR, Ordera, Avana
DAAL Ventures invests in innovative tech startups with a focus on emerging markets. With extensive experience and network in the local tech scene, they are the ideal partner for startups aiming to expand to the Middle Eastern and Saudi Arabian market.
Year of Inception: 2015
Stage: Seed, Series A, Series B
Focus: FinTech, E-commerce, Logistics, EdTech, Digital Health, Enterprise Solutions, Entertainment, RetailTech, AI/ML, SaaS - Marketplaces - Aggregators
Notable Portfolio: Hala, PalmHR, Wafeq, Quant, Dawul, Tweeq, SimpliFi
RAED Ventures invests in and assists founders who are establishing game-changing enterprises with scalable impact in the MENA region. As part of their portfolio, statups gain access to their network, experience, amd skills; providing them the chance to expand in the Saudi and GCC markets. They also have a dedicated RaedPlus program that connects entreprenuers with world-class experts and provide access to various services.
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Year of Inception: 2012
Stage: Seed, Series A, Series B, Series C
Focus: Sector Agnostic
Notable Portfolio: Classera, Dawul, Marn, Mozn, Quatums, SimpliFi
Sukna Ventures invest in MENA-focused, tech-driven startups in a variety of industries, ranging from banking to entertainment. They focus on creating value at all phases of development, helping startups accelerate digital transformation and create impact in the regional and global scene.
Year of Inception: 2011
Stage: Series A, Series B, Series C
Focus: E-commerce, Retail systems, Fintech, Logistics
Notable Portfolio: Trukker, Foodics, Beehive, Dokkan Afkar, Souqalmal
The Riyad TAQNIA Fund (RTF) is a closed-ended venture capital fund established by Riyad Capital and TAQNIA. It invests in a portfolio of Saudi, GCC-based, and international technology companies, promoting the development and transfer of cutting-edge technology and associated expertise to the Kingdom.
Year of Inception: 2014
Stage: Series A, Series B, Series C
Focus: Technology
Notable Portfolio: 360Vuz, Tamara, Telfaz11, Eventus, Omniful, Bondai
HALA Ventures invest in early to growth stage firms in the GCC, Egypt, and Jordan areas that utilize technology to scale quickly. HALA Ventures place extreme importance in providing thorough support for startup success, ensuring that they are always the first point of contact for any help or direction firms require. Their experienced consulting services and investment assistance are targeted to the specific needs of each portfolio firm.
Year of Inception: 2010
Stage: Series A, Series B, Series C
Focus: Technology, E-Commerce, SaaS, Software, Mobile Apps
Notable Portfolio: Hala, Nana, Wego, HyperPay, Matic, OTO
Middle East Venture Partners is one of the most renowned and impactful venture capital firm in the MENA region with 12 years of successful investing in companies across various tech sectors. They invest in early to growth stage firms and provide the framework and resources that tech founders need to bring forth innovation and flourish in the marketplace.
Year of Inception: 2012
Stage: Series A, Series B, Series C
Focus: IT, Communications, Internet, Media, Entertainment
Notable Portfolio: Aquto, Gengo, Modanisa, Scality, TransferTo
STC Ventures is an independently managed venture capital arm of Saudi Telecom Company, the largest telecommunications company in the MENA region. They invest in entrepreneurs who are building market-leading technology firms, with a particular interst in information technology, telecommunications, and digital media/entertainment industries.
Year of Inception: 2010
Stage: Series A, Series B, Series C
Focus: Logistics and Transportation, Sustainable Resources, Biotechnology and Healthcare, Internet, Communications and Technologies
Notable Portfolio: Trukker, Rutilea, Health Managers, Call Tech
Riyadh Valley Co. was founded in 2010 to serve as King Saud University's investment arm in various sectors of the knowledge economy and university initiatives. They form commercial partnerships between educational and research institutions and the investment community through investments in university members' projects.
Year of Inception: 2019
Stage: Series A, Series B, Series C
Focus: Technology, Enterprise Tech, Fintech, Deeptech & AI, B2B, B2C, Medtech
Notable Portfolio: Taulia, Quicktron, Wasabi, Signal Wire, Callsign, Jeeves
Prosperity7 Ventures is a $1 billion diversified growth fund of Aramco Ventures, the corporate venturing arm of Aramco, a leading global energy and chemicals company. They make long-term investments in entrepreneurs who are developing next-generation technologies and establishing revolutionary businesses and provides access to markets in the Middle East, China, and worldwide scalability.
Angel Investors in Saudi Arabia
The Angel investors listed below are part of an Angel community located throughout Saudi Arabia. They may act as an individual or as a syndicate to fund projects of their preference, so these networks are the best opportunity for you to find a potential Angel with an aligned vision and interests.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Middle East Investment Network is a platform whereby founders can post their projects along with their capital requirements to showcase to investors on the platform. The platform also features an 'Investor Search' feature whereby founders can browse through the angel investor members on the platform.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: -
Investors Mine is a group of angel investors who want to provide early-stage founders with all the assistance they require to develop their businesses. Aside from capital, they empower founders via training workshops that include sourcing capital, legal structure, and assisting them with talent difficulties, so that founders may compete in the market and obtain a sustainable return.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Glamera, Letswork, Hala, Okadoc, Omniful, Beekeeper
Oqal Angel Investment Network is an endowment founded by entrepreneurs and angel investors that serves as a forum for linking innovative founders with seasoned angel investors. The network provides entrepreneurs with access to angel investors and potential financing to shorten the fundraising process and accelerate promising scalable, creative enterprises across various industries.
Stage: Seed, Series A
Focus: Technology
Notable Portfolio: Glamera, Kleen, Marn, SIDEUP
Riyadh Angel Investors is an angel group comprising over 50 members who are senior executives from the Kingdom of Saudi Arabia's top institutions and organizations. Leveraging their deep networks, sector expertise, and funding, they promote and invest in regionally and locally-grown seed and early-stage enterprises. They also provide investees with access to the networks, mentorship, and business counsel of RAI angels.
Stage: Pre Seed, Seed, Series A
Focus: Technology
Notable Portfolio: Letswork, SplendApp, beXel, ASSEMBLER
Launched in October 2020, Saudi Angel Investors is a group of 60 like-minded investors that invest in early-stage technological firms with great growth potential. They are a fully-capitalized investment firm with seasoned investors, Internet entrepreneurs, venture fund partners, and senior executives among the members. They leverage their collective knowledge and broad network of contacts to bring value to their investees.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Yodawy, Rology
Athaal is a Saudi angel investors group that invests in early-stage firms across the MENA region. Athaal is made up of individual angel investors that are looking to fund privately owned enterprises or projects that are in the early stages of growth. Through presentations and other means, Ahthaal enables the introduction of entrepreneurs to potential investors. While angels make their own investment decisions, Athaal conducts due diligence for ideas that attract investor interest, negotiates terms, and closes the acquisition.
Stage: Seed, Series A
Focus: Sector Agnostic
Notable Portfolio: Linkers, MONH, Hospitalia, Tasmimak, Tamarran
Falak Angels is the angel network of Falak Investment Hub, a full service investment, corporate innovation, and startup acceleration organization in Saudi Arabia. The angel network is affiliated with Saudi Venture Capital, through which they present a number of screened early-stage tech deals to their network, with the possibility of applying for co-match from SVC.
Closing Thoughts on VCs and Angel Investors in Saudi Arabia
Saudi Arabia's recent startup achievements are primarily the result of the government's reformative changes that are opening up new markets, encouraging entrepreneurial activities, and opening up new paths for innovation. The present enthusiasm and activity in the Saudi startup sector have significantly transformed mindsets that many experienced professionals are abandoning their careers to launch their own startups. Abundant with untapped potential, Saudi Arabia is at a key juncture in its contemporary history.
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