Flat6Labs and SVC Launch $40M Seed Fund in Saudi Arabia

  • The Saudi Venture Capital Company (SVC) has partnered with Flat6Labs to launch the “Startup Seed Fund” and the Flat6Labs Riyadh Seed Program to empower over 60 Saudi startups over the next three years.
  • The fund aims to raise SAR 150 million ($40 million) over the next 12 months, to invest in early-stage startups operating in the technology and innovation sectors in Saudi Arabia. The investment will range from $200,000 to $400,000 per business, along with follow-on funding that will allow businesses to complete their expansion in and out of Saudi Arabia.
  • In addition to the cash investment, the fund will offer the Flat6Labs Riyadh Seed program, which will provide Saudi entrepreneurs with a four-month Seed acceleration program.

Press release:

Saudi Venture Capital (SVC), one of the leading venture capital investment ecosystem development companies in Saudi Arabia, has signed a new investment agreement with Flat6Labs, the leading venture capital firm in priming and start-up in the MENA region, to introduce the “Startup Seed Fund”. The fund aims to support startups with growth potential and provide more than 20 Saudi startups with seed capital each year over the next three years, in addition to a number of other benefits.

BLOMINVEST, one of the region’s leading investment management companies, will manage the distribution and marketing of the ‘Startup Seed Fund’ as it will be the exclusive partner for the marketing of the fund’s shares in Saudi Arabia and will raise up to to SAR 150 million, within 12 months of the launch of the fund.The fund will adopt a highly diversified systematic investment plan that aims to reduce the risks faced by VCs as well as the administrative and legal costs faced by VCs. early-stage startups.The fund is also designed to provide support and investment in Saudi startups, provide various means to support innovation, and create space for pioneering young Saudis to grow their tech startups and expand their range in the region.

The size of the fund is SAR 150 million and is allocated for the investment of early stage startups operating in the technology and innovation sectors within Saudi Arabia. The investment provided to the companies will be between SAR 750,000 and 1,500,000 per company, along with follow-on funding that will enable the companies to complete their expansion inside and outside Saudi Arabia.

In addition to cash investment, the fund offers the Flat6Labs Riyadh seed program, which is a 4-month seed program held twice a year for over 3 years. The program will help entrepreneurs develop their business skills and provide them with a favorable environment to develop their products, test market suitability, improve their business models and pitch to external investors; the first cycle of the program should take place at the beginning of the third term.

Dr. Nabeel Koshak, CEO of SVC, said: Our investment in the “Startup Seed Fund” with Flat6Labs is part of SVC’s implementation strategy to launch the “Investment in Accelerator and Startup Studio Funds” product, this partnership is built to enhance the creation of high-growth startups and to support investment in their seed and pre-seed phases. This product was developed to foster the growth of the venture capital ecosystem in Saudi Arabia at all stages, with the aim of filling a funding gap resulting from the concentration of venture capital funds and angel investors on investments beyond the seed stage.

The fund aims to support more than 180 entrepreneurs, create more than 6,000 jobs in Saudi Arabia’s private sector, and enable Saudi businesses to grow in the region through Flat6Labs’ regional offices. It will contribute to completing the process of structural transformation to which Saudi Arabia aspires by increasing the share of the digital economy in GDP and strengthening the contribution of the non-oil private sector.

Ramez El Serafy, CEO of Flat6Labs, added, “We are excited to provide investment opportunities for early-stage Saudi-based startups, which form the backbone of the private sector in Saudi Arabia. We look forward to launching the Flat6Labs Riyadh Seed program, a program dedicated exclusively to accelerating economic transformation in Saudi Arabia, the location of our first regional expansion outside of Egypt. We are proud to transfer Flat6Labs’ knowledge of initial investments and seed programs to our team in Saudi Arabia led by Eyad Albayouk, our General Manager in Saudi Arabia, and Lujain Nassif, our Program Manager in Saudi Arabia. . We are also looking forward to strengthening the team in Saudi Arabia with more young Saudi talent. »


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