Saudi Arabia: Investments Doubled for Startups in 2019
Business
Riyadh - Asharq Al-Awsat
Investments in startups have doubled in Saudi Arabia over the past year, topping the growth rate of emerging investments in the Middle East and North Africa (MENA) region. Governor of the General Authority for Small and Medium Enterprises (Monshaat) Saleh al-Rasheed announced during the launch of Biban Forum that there were 71 investments in startups in 2019, a 92 percent growth. Rasheed indicated that the total amount of financing reached $67 million, a 35 percent increase. He explained that based on the “2019 Saudi Arabia Venture Capital” report sponsored by the Saudi Venture Capital Company (SVC), the number of investments in Saudi-based startups reached 41, with accelerators accounting for 32 percent of all deals. Saudi investors are the most active in startups in MENA, Rasheed said, explaining that e-commerce tops industries based on number of deals with 27 percent, whereas delivery and transportation ranked first among total venture capital funding in 2019, totaling 26 percent. SVC is a government venture capital entity established in 2018 that aims to minimize funding gaps for startups by investing $750 million, announced Rasheed. He explained that it is one of the private sector development initiatives implemented by Monshaat to contribute to the growth and diversification of the Kingdom's economy in addition to supporting small and medium enterprises to explore new areas in several ways. Monshaat established Saudi Arabia’s Venture Capital and Private Equity Association (SAVCPEA) to unite professionals, drive industry awareness, and facilitate partnerships in the sector. As well as encouraging closer collaboration between innovative businesses and venture capital and private equity companies, the Association is set to promote the industry’s contribution to the growing Saudi economy, along with its role in improving and raising awareness of regulatory policies. Monshaat is keen to stimulate capital financing for small and medium enterprises and entrepreneurship, and enhance investment in startups during their various stages of development. It also uses local capabilities through investments at early stages of the companies to create revenues for investors which serve the growth of the Saudi economy.
from Asharq AL-awsat https://aawsat.com/english/home/article/2106641/saudi-arabia-investments-doubled-startups-2019
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