Were you aware that Saudi Arabia secured the largest portion of the capital deployed in the MENA region in 2023? Download our 2023 Saudi Arabia Venture Investment Report sponsored by SVC to gain insights into the Kingdom’s performance in the venture capital landscape in 2023.
To get a comprehensive replay of venture activities in 2023, watch our webinar here!
Overview
The 2023 Saudi Arabia Venture Investment Report explores the growth of the nation's venture capital environment, highlighting its advancements in comparison to other MENA geographies.
In 2023, Saudi Arabia reaffirmed its status as a pivotal player in the MENA region, surpassing the $1Bn milestone for the second consecutive year. The Kingdom's venture capital ecosystem achieved an unprecedented $1,383 million in capital deployed, marking a 33% increase from 2022. This surge elevated the country's share of the MENA region's overall funding from 30% in 2022 to 52% in 2023.
Introduction
Venture capital funding in the Kingdom has exhibited consistent growth since 2019, showcasing a 5-year CAGR of 86% in 2023. Despite a continuous upward trend in the number of transactions over five years between 2018 and 2022, there was an annual decline of 20% in 2023. Concurrently, Saudi Arabia reached a record high of MEGA deals, with four deals amassing $879M in 2023.
The Kingdom topped the MENA funding rankings, with the UAE securing the second spot and Egypt maintaining its third position.
Experiencing a 33% year-on-year increase in total funding, Saudi Arabia expanded its funding gap with the UAE. The surplus of $229 million for the Emirates in 2022 turned into a substantial $692 million advantage for Saudi Arabia in 2023.
At the level of industries, FinTech claimed the top spot among industries in the Kingdom, making up 51% of the country's deployed capital, fueled by the substantial MEGA rounds of Tabby and Tamara. E-Commerce/Retail secured a significant share of 31%, establishing itself as a growing influence in the Kingdom's industries, supported by the noteworthy MEGA deals of Floward and Nana.
What’s In The Report?
The 2023 Saudi Arabia Venture Investment Report offers strategic insights covering the VC space in the Kingdom. This report covers a 5-year analysis of Saudi Arabia’s funding evolution, with a country comparison against MENA peers and industry performance in 2023. You will get access to precious information such as:
Saudi Arabia’s Venture Funding Evolution: Get an overview of the past five years, highlighting the country's growth and development of venture funding.
Key metrics include the split of investors by deals, Top 5 funding rounds, and 5-year exit evolution of Saudi-based Startups.
Who is it for?
Whether you’re a private investor, a VC, an investment company, a CVC, or working in corporate, our reports give an overview of the ecosystem and cater to a diverse audience including any curious minds who want to use yearly, quarterly, and monthly charts to track investment activity.
You can also see in which country and industry the investment activity focused in terms of deals and capital deployed, allowing you to leverage insights and make wise choices.
The report can also be used by consultants looking to identify technology innovation trends and who will find it valuable to look at the evolution of M&A activity and concentration of acquirers/acquired startups.
Last but not least, government entities searching for investment opportunities will also find valuable information to make informed decisions.
Where is this information from?
Our reports are created using data from MAGNiTT. MAGNiTT is the leading verified VC data platform and offers a comprehensive directory of technology innovation trends. Our unique SaaS solution includes investment directories listing startup venture funding across the Middle East, Africa, Pakistan, Turkey, and now Southeast Asia. By using MAGNiTT, you will also get access to market sizing tools to visualize investment growth and trends across various industries, geographies, and stages, as well as comparison tools for benchmarking geographies, industries, and investor performance. Furthermore, MAGNiTT offers exit comparisons by examining mergers and acquisitions.
Learn more about MAGNiTT's Data Methodology.
About SVC:
SVC is an investment company ($2.3 billion AUM) established in 2018 and is a subsidiary of the SME Bank, one of the development banks affiliated with the National Development Fund. SVC aims to stimulate and sustain financing for startups and SMEs from pre-Seed to pre-IPO through investment in funds and co-investment in startups and SMEs. Since inception, SVC has backed 50 Private Capital (Venture Capital, Private Equity, Venture Debt, Private Debt) Funds that supported 600+ Startups and SMEs.