Saudi Startups Soar with $3.3 Billion in Funding
In an explosive growth spurt, startups in Saudi Arabia have secured a whopping $3.3 billion in venture capital funding over the past decade, as reported by MAGNiTT.
Decoding the DNA of Saudi Founders
MAGNiTT’s “10 Years Saudi Arabia Founders Report,” sponsored by Saudi Venture Capital Co., dives deep into the backgrounds, experiences, and expertise of founders in the Kingdom.
CEO and founder of MAGNiTT, Philip Bahoshy, stated, “By shedding light on founders’ experiences in the Saudi ecosystem, we aim to empower aspiring entrepreneurs, guide policymakers, and provide valuable insights for investors.”
The Rise of Saudi Startups
SVC CEO Nabeel Koshak highlighted the remarkable growth and dynamism in the Saudi startup landscape, fueled by strategic initiatives aligned with Saudi Vision 2030.
Key Insights from the Report
– Teams with two founding members secured 53% of total funds
– Startups founded by a single individual captured only 15% of funding
– 59% of founders had technical education backgrounds
– 39% of founders held degrees in business
A Decade of Funding Breakdown
The report highlighted that startups with two founding members received the lion’s share of funding, while solo founders struggled to secure substantial investment.
With robust support for innovation, the Kingdom is poised to witness the rise of more unicorns in the startup ecosystem.
Glimpse into Founders’ Education and Experience
– 55% of founders in Saudi Arabia held at least a bachelor’s degree
– 48% of founders had backgrounds in information technology
– 36% of founders had over 10 years of professional experience before launching their startups
Gender Disparity and Professional Backgrounds
The report revealed a significant gender gap in the VC landscape, with male founders dominating the scene. Additionally, the majority of founders had significant leadership roles before starting their businesses, with experience in diverse sectors such as fintech, banking, and e-commerce.
Overall, the report paints a picture of a vibrant and growing entrepreneurial ecosystem in Saudi Arabia, fueled by innovation, strategic initiatives, and a diverse pool of talented founders.