ArabFinance: Saudi Venture Capital Company (SVC) has signed an investment agreement with Flat6Labs to launch the “Startup Seed Fund” aiming at supporting startups, according to a press release.
Startup Seed Fund is set to bolster startups with growth potential and to offer over 20 Saudi startups seed capital over the coming three years.
The fund’s size stands at SAR 150 million which is dedicated to investment in early-stage startups operating within the Saudi technology and innovation sectors.
Investment offered to companies will range between SAR 750,000 and SAR 1.5 million per company, in addition to, follow-on funding to help companies expand in the kingdom and abroad.
BLOMNIVEST, a leading investment management company in the region, will manage the distribution and marketing of the fund as the exclusive partner for marketing the fund’s units in Saudi Arabia.
The management company will also help the fund to raise SAR 150 million within a 12-month period from the fund’s launch.
More than 180 entrepreneurs are expected to benefit from the Startup Seed Fund, with over 6,000 jobs likely to be created in the Saudi private sector.
The fund will adopt an investment plan that targets reducing risks faced by venture capitals (VCs) as well as administrative and legal costs experienced by startups at early stages.
The fund also introduces the Flat6Labs Riyadh Seed program, “which is a four-month seed program held twice a year for over a span of three years”.
Flat6Labs is a leading seed and early-stage venture capital firm in the MENA region that managed seed funds with a total of $85 million in assets under management (AUM).
SVC is a Saudi VC that was established in 2008 by Monshaat as part of the Financial Sector Development Program (FSDP).