Saudi Arabia Leading the Venture Capital Wave in MENA Region
A surge of venture capital funding is reshaping the entrepreneurial landscape in the Middle East and North Africa region, with Saudi Arabia’s government taking the lead through its subsidiary of the SME Bank, part of the National Development Fund. Saudi Venture Capital (SVC) has been instrumental in shaping the private investment landscape by deploying finance across 40 investment funds and over 700 startups and small and medium-sized enterprises.
According to the latest Impact Report issued by SVC, the total investments have reached SR2.6 billion ($693.1 million), with an estimated overall impact of around SR13.6 billion. These investments cover critical sectors such as e-commerce, fintech, healthcare, educational technologies, transportation, and logistics, essential for economic diversification.
CEO of SVC, Nabeel Koshak, emphasized the role of SVC in stimulating private VC investment to foster the growth of the VC ecosystem in the Kingdom. The strategic initiatives of SVC have positioned Saudi Arabia as a leader in venture investments within the MENA region for the first time in 2023, reflecting the broader economic and financial sector evolution under Saudi Vision 2030.
Saudi Arabia’s Penny Software Secures Pre-Series A Funding
Saudi Arabia’s Penny Software has closed its pre-series A funding round with an undisclosed sum from Iliad Partners, GSI, and US-based Knollwood Investments. The startup, founded in 2020, digitizes the source-to-pay process for businesses, enhancing spend efficiency, governance, and compliance.
The CEO of Penny Software, Iyad Al-Dalooj, expressed excitement about the partnership and the opportunity to scale operations and enhance product offerings. The new capital infusion will fuel Penny’s ambitions for regional and global expansion, following a successful seed funding round in 2021.
UAE’s DocsInBox and U-topia Secure Funding Rounds
DocsInBox, a UAE e-invoicing and procurement startup, closed a $500,000 funding round to boost its presence. The platform streamlines invoicing and procurement processes, saving time and costs for businesses.
U-topia, a UAE-based Web3 services provider, secured $850,000 in funding from GDA Capital. The company focuses on Web3 entertainment and plans to enhance its platform offerings with the new investment.
Nigeria and Egypt Venture Capital News
Nigeria’s Verod-Kepple Africa Ventures closed a $60 million fund for its pan-African VC fund, aiming to bridge the funding gap for startups in series A and B stages. In Egypt, Beltone Venture Capital teamed up with UAE’s CI Venture Capital to manage a $30 million fund for nurturing fast-growing startups in the MENA region.