Jeddah – the land
Bold investment … a path that attracts many aspirants to shorten the start, and those who strive for the highest return in the shortest time This type of investment reflects the expansion of opportunities available to entrepreneurs in the Kingdom today, and encourages the financing to the environment for technical projects.
The bold investment also aims to increase the contribution of small and medium-sized enterprises to the domestic product from 20% to 35%, and to increase the growth rate and sustainability of emerging businesses, in view of the Kingdom’s pace with digital economic transformations in the world, and improving its importance and competitiveness as a preferred investment destination on the international economic map.
Within the framework of the initiative of the General Government for Small and Medium-sized Enterprises “Monsha’at” to stimulate and activate the role of this important sector and entrepreneurship in the national economy, the Saudi Venture Investment Company has announced its investment in the Venture Debt Fund announced. managed by Partners for Growth (PFG), one of the Global Funds executives and experienced in providing venture capital instruments to beginners and SMEs.
The fund will focus on providing equity instruments (financing) to start-up companies and small and medium-sized enterprises in the fields of technology, financial technology, healthcare and life sciences.
The importance of this investment step is underlined by the CEO and board member of the Saudi Venture Investment Company, dr. Nabil bin Abdul Qadir Koshak, that the investment in the Venture Debt Fund with PFG comes within the company’s program to close the financing gaps in the Venture Investment System; It provides financing solutions for beginners and fast-growing small and medium-sized businesses to help avoid reducing the ownership of existing founders and investors.
Record success and growth
Since its inception by the Monsha’at Authority in 2018 as a state-owned company, and within the financial development program, the Saudi Venture Investment Company has worked to develop the system for this activity by investing 2.8 billion riyals.
According to a previous report, the system has grown 770 percent in the UK, bringing the total value of financial injection in promising investments for beginners to 2021 to 6.5 billion riyals ($ 1.7 billion) Brought in, and an increase in the number of investors in Saudi start-ups by 192%, bringing their number to 76. In the same year, compared to only 26 in 2018, the number of funds in which the company invests reached 23 funds affiliated with 83 Saudi start-ups, covering various sectors such as e-commerce, financial technology, information technology and solutions, education, delivery and transportation.
From here, as the CEO of the company, dr. Nabil Koshak, stressed, the Kingdom is witnessing a significant growth in investment in start-up companies that is capable of rapid growth and is able to expand locally and globally, and the important role of the company in the development of the daring investment system in the Kingdom, by supporting the establishment of funds and motivating investors to invest in emerging companies, in a way that contributes to the diversification of the Saudi economy and the improvement of local content, as investment funds seek to invest in emerging companies. companies capable of rapid and large growth.
Expand investment opportunities
The investment capital is usually allocated to small companies that have exceptional growth potential, or to companies that have grown rapidly, and are ready to continue expanding and work to achieve higher returns and continue to make bold investments. with 6 daring investment funds in partnership with experienced investment companies, to invest in investment funds that will be set up by fund managers.
In view of the economic objectives of expanding serious investment opportunities, and according to the Governor of the General Authority for Small and Medium Enterprises “Monsha’at” and Chairman of the Board of the Saudi Venture Investment Company, Eng. Saleh bin Ibrahim Al-Rasheed, the company launched investment activities in funds through the program of the Venture Investment Initiative, which also includes the investment program In Startups and Participation Investment Program.
Miss training program
Due to the nature of daring investment and its high returns, the investor (the daring) usually accepts the risk of investing in emerging companies, hoping to earn big returns when the companies become successful, and in companies that the take into account growth potential, the strength of their management team, and the uniqueness of their products or services.
There is a golden rule for the success of small and medium enterprises and entrepreneurship, which states that “financing alone is not enough, but also efficiency and ambition.” … For this purpose, and for the success and growth of this sector, the Misk Foundation Program and the Saudi Venture Investment Company have provided a unique educational experience that provides insight into the venture capital system by providing opportunities for aspiring pioneers and leaders to partner with one of the best and largest venture capital firms. in the region, which is looking for young and ambitious capabilities, through qualification in the fields of investment, finance and law.