SVC launches $80 million VC fund to support fintech in KSA

by James · March 20, 2023

SVC launches million VC fund to support fintech in KSA

Saudi Venture Capital Company (SVC) has launched an $80 million investment in the Fintech VC Fund, in partnership with the Capital Market Authority (CMA) and the Financial Sector Development Program (FSDP).

The new VC fund will focus on financing the fintech sector in Saudi Arabia, which experienced a growth of 167 percent. in 2022 compared to 2021.

SVC is a subsidiary of SME Bank founded in 2018 as a state investment company. It aims to stimulate and sustain funding for startups and SMEs from pre-Seed to pre-IPO by investing $1.6 billion through investment in funds and co-investment in startups.

Source: Zawya

Saudi Venture Capital Company (SVC) announced the launch of the “Investment in Fintech VC Funds” product, in partnership with the Capital Market Authority (CMA) and the Financial Sector Development Program (FSDP), with an allocation of SAR300 million from the investment. portfolio for this product.

The “Investment in Fintech VC Funds” product launched by SVC, as part of the Investment in Fund program, stimulates the establishment of VC funds in the financial technology (FinTech) sector in accordance with the requirements of the CMA.

The FinTech sector has witnessed steady growth in recent years. It was the most funded sector in Saudi Arabia in 2022 in terms of the number of deals and the 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 with 2021.

This growth is driven by the launch of many government initiatives that stimulate the FinTech sector, such as the “Saudi FinTech” initiative launched by the Saudi Central Bank in collaboration with the Capital Market Authority as a stimulating step to develop the FinTech industry in Saudi Arabia and strengthening its role in national socio-economic development as well as 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 FinTech.

SVC is a state investment company established in 2018 and is a subsidiary of SME Bank, one of the development banks associated with the National Development Fund. SVC aims to stimulate and sustain funding for startups and SMEs from pre-Seed to pre-IPO by investing $1.6 billion through investment in funds and co-investment in startups. SVC invested in 35 funds that have invested in 525 companies through 904 deals.