RIYADH: Saudi Venture Capital, or SVC, and regionally leading seed and early-stage venture capital firm Flat6Labs have launched a $40 million seed fund.
Over the next three years, the fund aims to support startups with growth potential and provide seed capital to more than 20 startups each year.
The size of the fund, which is around SR150 million ($40 million), will be used in investing early-stage startups operating in the technology and innovation sectors in Saudi Arabia.
The investment per company will be between SR 750,000 and SR 1.5 million.
The fund will also offer what is known as the Flat6Labs Riyadh Seed program, which aims to help entrepreneurs further develop their business skills, develop their products, test market fit, improve business models and present to external investors.
“This early-stage seed fund was developed to foster the growth of the venture capital ecosystem in Saudi Arabia at all stages, with the aim of filling a funding gap resulting from the concentration of venture capital funds and angel investors on investments beyond the seed stage,” said a statement quoting SVC CEO Nabeel Koshak.
The fund’s vision is to help around 180 entrepreneurs, create more than 6,000 jobs in the Kingdom’s private sector and facilitate the expansion of Saudi businesses in the region.
The fund is also expected to increase the share of GDP of the Kingdom’s digital economy and increase the contribution of the non-oil private sector.