Saudi Venture Capital unveils new fund to support fintech startups
The Saudi Venture Capital (SVC) in collaboration with Capital Market Authority has unveiled ‘Investment in Fintech VC Funds’ to raise funds for startups.
The funds will be used to stimulate and sustain financing for startups and SMEs from pre-Seed to pre-IPO by investing $1.6 billion through investment in funds and co-investment in startups.
However, the SVC has invested in 35 funds that have invested in 525 companies through 904 deals.
Currently, about $80 million has been allocated from the investment portfolio for the new product named, “Investment in Fintech VC Funds” which was unveiled at the Financial Sector Conference 2023 in Riyadh.
The Financial Sector Development Program is also a main partner for launching the new product.
SVC, a government investment company, was established in 2018 and is a subsidiary of SME Bank, one of the development banks affiliated with the National Development Fund.
The FinTech sector has seen steady growth during recent years. It was the most funded sector in Saudi Arabia in 2022 in terms of the number of deals and amount of VC funding, accounting for 24% of the total VC funding in the country with $239 million raised, achieving a growth of 167% compared to 2021.
This growth is driven by the launch of many governmental initiatives that stimulate the FinTech sector, such as the “Saudi FinTech” initiative launched by the Saudi Central Bank in partnership with the Capital Market Authority as a stimulus step to develop the FinTech industry in Saudi Arabia and enhance its role in national socio-economic development.
Also, the launch of the Kingdom’s fintech strategy as a new pillar within the Saudi Vision 2030 Financial Sector Development Program (FSDP), which aims to support the Kingdom to be among the leading countries in the field of FinTech.-TradeArabia News Service