The Governor of the Small and Medium Enterprises General Authority “Monsha’at”, Engineer Saleh bin Ibrahim Al-Rasheed, announced, in conjunction with the launch of the Biban Riyadh forum today, that 71 investments in startups were recorded in the Kingdom in 2019, an increase of 92%, with total funding reaching SAR 251.25 million, an increase of 35%.
The Governor of Monsha’at explained that, according to the Venture Capital in the Kingdom of Saudi Arabia 2019 report, issued by a global platform specializing in startup and company data and sponsored by the Saudi Venture Capital Company, which was founded by Monsha’at, the number of investors reached its highest level ever, with 41 investors investing in startups based in the Kingdom in 2019, while business accelerators accounted for 32% of total investments.
He noted that Saudi investors are the most active investors in startups in the Middle East and North Africa region, with 48 investors, while the e-commerce sector ranked first as the most active sector by number of deals, at 27%, and the transport sector accounted for the highest share of funding, at 26%.
Engineer Al-Rasheed pointed out that the Saudi Venture Capital Company was established in 2018 with capital of up to SAR 2.8 billion. It is one of the private sector development initiatives implemented by Monsha’at with the aim of contributing to the growth and diversification of the Kingdom’s economy, in addition to enabling and supporting SMEs and encouraging them to explore new fields in several ways, one of which is providing the necessary support and venture investment in startups, alongside investing in venture capital funds, with the aim of closing current funding gaps.
Monsha’at also established the Venture Capital and Private Equity Association, which aims to strengthen the role of the venture capital and private equity sector in Saudi Arabia, develop business ethics, entrench the best professional standards in this field, and support the growth of the Saudi economy, in addition to putting in place mechanisms that help develop and improve the regulations and policies related to the sector.
Monsha’at is committed to stimulating equity financing for SMEs and entrepreneurs, strengthening avenues for investment in startups at their various stages of growth, and harnessing local capabilities by investing in companies at the early and growth stages, with the aim of generating financial returns for investors and achieving strategic returns that serve the growth of the economy in the Kingdom of Saudi Arabia.