The “H1 2022 Saudi Arabia Venture Capital Report” revealed that the funding deployed into Saudi Arabian startups grew by 244% to a record-high of SAR 2.19 billion ($584M) in H1 2022 versus H1 2021 and surpassing the total amount deployed in full-year 2021.
Although 2021 was a positive year for venture funding in the Kingdom, H1 2022 witnessed unprecedented VC deployment, setting a new record in the amount of VC funding, according to the report published by the venture data platform, MAGNiTT, and sponsored by the Saudi Venture Capital (SVC).
The Kingdom advanced to become the second-most active VC market in MENA by number of deals, which rose by 36% to 79 deals in H1 2022 versus H1 2021, while maintaining its position as the second-most funded market in MENA over H1 2022.
A record-high of 88 investors participated in deals closed by Saudi startups in H1 2022, up 126% versus H1 2021, where 42% of the investors were from outside the kingdom.
Commenting on the report, Dr. Nabeel Koshak, CEO and Board Member at SVC, said “The establishment of SVC in 2018 directly contributed to the development of the VC ecosystem in the Kingdom by stimulating investment in funds and co-investment in startups with angel investor groups and fund managers”.
He further elaborated, “The Kingdom has achieved record growth in venture investment over the past few years, and within the framework of the Kingdom’s Vision 2030, many new initiatives have been launched recently to stimulate venture investment and the growth of startups, in addition to the emergence of an increasing number of VC funds and angel investor groups, and we are proud to see distinguished entrepreneurs building startups capable of fast and high growth. Saudi Arabia has always been an attractive market for entrepreneurs and investors from the Kingdom and abroad due to the huge size of this market.”