Saudi Venture Capital Company (SVC) has announced the launch of a key product, in partnership with Capital Market Authority (CMA) and Financial Sector Development Program.
A government investment company, SVC was established in 2018 and is a subsidiary of SME Bank, one the development banks affiliated to the National Development Fund.
It aims to stimulate and sustain financing 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.
Around SR300 million ($80 million) has been allocated from the investment portfolio for the new product - Investment in Fintech VC Funds - which was unveiled at the Financial Sector Conference 2023 in Riyadh.
The product, launched as part of the Investment in Fund Programm, comes to stimulate the establishment of VC funds in the financial technology (FinTech) sector in accordance with the requirements of CMA.
The FinTech sector witnessed a steady growth during recent years. It was the most funded sector in Saudi Arabia in 2022 in terms of number of deals and 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 to 2021.
This growth is driven by the launch of many governmental initiatives that stimulate the FinTech sector, such as the "Saudi FinTech" initiative launched by the Saudi Central Bank in partnership with the Capital Market Authority as a stimulus step to develop the FinTech industry in Saudi Arabia and enhance 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 the field of FinTech.-TradeArabia News Service
Copyright 2022 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (Syndigate.info).