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Saudi Venture Capital Announces $30 Million Investment in IMPACT46's Fund III

Riyadh Skyscrapers tower over a highway in the main financial hub, Riyadh, Saudi Arabia, Dec. 16, 2020. (AFP)
Riyadh Skyscrapers tower over a highway in the main financial hub, Riyadh, Saudi Arabia, Dec. 16, 2020. (AFP)
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Saudi Venture Capital Announces $30 Million Investment in IMPACT46's Fund III

Riyadh Skyscrapers tower over a highway in the main financial hub, Riyadh, Saudi Arabia, Dec. 16, 2020. (AFP)
Riyadh Skyscrapers tower over a highway in the main financial hub, Riyadh, Saudi Arabia, Dec. 16, 2020. (AFP)

Saudi Venture Capital (SVC) announced its investment of $30 million in Fund III managed by IMPACT46, a prominent asset management and advisory firm, which was among the first to receive authorization from the Capital Market Authority (CMA), reported the Saudi Press Agency on Monday.

Fund III will invest in Saudi growth-stage companies and up to pre-IPO stage businesses, with an allocation to seed-stage startups and promising startups from the broader Middle East region.

The subscription agreement was signed by CEO and Board Member at SVC Dr. Nabeel Koshak and Founder and CEO of IMPACT46 Abdulaziz Alomran. The signing ceremony was also attended by Chief Investment Officer Nora Alsarhan and Chief Legal Officer at SVC Haifa Bahaian as well as Managing Partner and Head of Asset Management at IMPACT46 Basmah Alsinaidi.

Dr. Koshak commented: "The investment in IMPACT46's Fund III is part of SVC's Investment in Funds Program to support the development of the venture capital (VC) ecosystem in Saudi Arabia for all sectors and stages. This investment also comes to foster the growth witnessed recently by the VC sector in Saudi Arabia, which made it at the forefront of the VC scene in MENA during the first half of 2023, in terms of the amount of VC funding."

Last July, reports revealed that Saudi Arabia was the most funded country in the MENA region in terms of the amount of Venture Capital funding in H1 2023, which witnessed a total VC deployment of $446M (SAR 1.67 billion).

"We are delighted that SVC and IMPACT46 are once again joining forces, this time with our Fund III, which aims to support the growth of the tech startup ecosystem in Saudi Arabia. This partnership demonstrates our commitment to achieving our shared vision for driving a sustainable economic impact," stated Founder and CEO of IMPACT46 Abdulaziz Alomran.

"This investment not only signifies the growing maturity of the VC activity in Saudi Arabia but also highlights the Kingdom's potential to emerge as a frontrunner in this sector."

SVC is a government investment company established in 2018 and is a subsidiary of the SME Bank, one of the developmental banks affiliated with the National Development Fund. SVC aims to stimulate and sustain financing for startups and SMEs from pre-Seed to pre-IPO by investing $2 billion through investment in funds and co-investment in startups. SVC invested in 43 funds that have invested in 700+ companies.

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Future Investment Initiative Conference Gathers Global Decision-Makers in Riyadh

One of the dialogue sessions of the Future Investment Initiative in its previous edition (Asharq Al-Awsat)
One of the dialogue sessions of the Future Investment Initiative in its previous edition (Asharq Al-Awsat)
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Future Investment Initiative Conference Gathers Global Decision-Makers in Riyadh

One of the dialogue sessions of the Future Investment Initiative in its previous edition (Asharq Al-Awsat)
One of the dialogue sessions of the Future Investment Initiative in its previous edition (Asharq Al-Awsat)

Under the patronage of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz, Riyadh is set to launch the eighth edition of the Future Investment Initiative (FII) conference on Monday.
This year’s event carries the theme, “Infinite Horizons... Investing Today, Shaping Tomorrow” and will feature prominent figures in finance, investment, and technology.
Through its annual conference, often called the “Davos of the Desert,” the Future Investment Initiative aims to foster discussions on how investment can drive a prosperous and sustainable future, expanding the possibilities for humanity.
The conference is expected to attract over 7,000 guests and 500 speakers, covering a wide range of current topics across more than 200 sessions. Key areas of focus include economic stability, equitable development, climate change, artificial intelligence, innovation, health, and geopolitical issues.
Among those looking to leverage projects aligned with Saudi Arabia’s Vision 2030 are David Solomon of Goldman Sachs, Jane Fraser of Citigroup, and Larry Fink of BlackRock, which recently agreed to establish a multi-asset investment platform in Riyadh, backed by a $5 billion investment from Saudi Arabia’s sovereign wealth fund. This year, the conference will also host the New Africa Summit, featuring speakers from Africa’s mining and banking sectors.
Reflecting Saudi Arabia’s emphasis on technology and artificial intelligence, industry leaders in these fields will participate in the event. Notably, Alphabet President Ruth Porat, TikTok CEO Shou Zi Chew, and tech entrepreneur Benjamin Horowitz, co-founder of the venture capital firm Andreessen Horowitz, are scheduled to speak for the first time.
According to Richard Attias, CEO of the Future Investment Initiative, executives worldwide are expected to announce deals exceeding $28 billion. Some of these initiatives will focus on artificial intelligence, including a new potential fund with Andreessen Horowitz that could grow to $40 billion, as reported by Bloomberg.
The Kingdom is also expected to announce a new company that will invest at least $10 billion in making Saudi Arabia the world’s largest producer of hydrogen—a low-carbon fuel critical for the global transition away from fossil fuels. Key speakers from Asia will include Hong Kong’s Financial Secretary Paul Chan and Belt and Road Commissioner Nicholas Ho.
On the eve of the event, Swiss entrepreneur and FII participant Stephan Knuser told Asharq Al-Awsat that the conference will provide significant business insights for both local and international communities, anticipating that new partnerships will form between Swiss and Saudi companies in energy-efficient technologies and food security.
Neil Bush, Chairman of Sky Towers, remarked: “We view FII as not only a driver for attracting capital but also for bringing in technologies that accelerate Saudi Arabia’s goals.” According to Bush, the FII topics align with needs like business registration processes, free trade zone policies, and strategies for developing industrial complexes, which will help accelerate Vision 2030 goals, including carbon reduction.