Kamal Hassan

The H1 2024 Saudi Arabia Venture Investment Repor Were you aware that Saudi Arabia secured the largest portion of the capital deployed in the MENA region again in H1 2024? Download our H1 2024 Saudi Arabia Venture Investment Report sponsored by SVC to uncover valuable insights about the Kingdom’s performance in the venture capital landscape in H1 2024. Overview The H1 2024 Saudi Arabia Venture Investment Report, sponsored by SVC, underscores Saudi Arabia's leading role in the MENA VC landscape and its continued appeal to both local and international investors How did the Saudi VC space perform in H1 2024? In H1 2024, Saudi Arabia reaffirmed its position as the leader in Venture Capital funding across the Middle East and North Africa. Despite a slight 7% year-on-year decline, Saudi Arabia’s VC ecosystem aggregated an impressive $412M in funding. Notably, 32% of this funding came from a significant $130M deal in Salla, marking the only MEGA round in the MENA region for 2024 so far. Deal flow activity in Saudi Arabia remained relatively stable, with only a 3% YoY reduction in H1 2024, solidifying its status as the second most active MENA country in terms of transactions. The country's contribution to the MENA region's total funding surged from 38% in H1 2023 to 54% in H1 2024, with Saudi Arabia accounting for 30% of total deals, up from 25% in the same period last year. This growth highlights Saudi Arabia's resilience, as the overall MENA region experienced a more pronounced 34% YoY decline in aggregated funding. The gap between Saudi Arabia and the UAE, the second-ranked country by funding, widened from $166M in H1 2023 to $187M in H1 2024. At the level of deals, the UAE had 20 more transactions than Saudi Arabia in H1 2024, this gap in deal flow activity increased from just 10 transactions in H1 2023. https://lnkd.in/ecDhc-KY Report by MAGNiTT Report by Salem Bagami Chief Executive Officer Digital Transformation Company & Managing Director 2080 Ventures Email: [email protected] Website: www.2080.ventures - #Sovereignwealthfund #SaudiArabia #Investment #Opportunities #privatequity #wealthmanagment #PIF #Familyoffices #assetsmanagment #Riyadh #Saudivision2030 #growth #fundmanger #hedgefunds

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Saudi Arabia’s venture capital landscape continues to grow with its reverberations reaching far continents. Global venture capital firms are capitalizing on the Kingdom’s expansive strategy, as evidenced by the state-owned Saudi Venture Capital Co.’s $30 million investment in a US-based investment firm.   SVC has pledged this significant investment in a private equity fund managed by the renowned US-based investment firm General Atlantic. The investment in the private equity fund by General Atlantic is part of SVC’s Investment in Funds Programme and an implementation of its strategy related to attracting top global fund managers to invest in Saudi-based companies as well as stimulating investment for later stages. #Saudiarabia #investment #fundraising #fundmangers #VentureCapitalists #GCC #Riyadh #VCs #GPs

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10 Years Saudi Arabia Founders Report Saudi Arabia's venture capital scene reached new heights in 2023, setting the stage for continued success and the potential rise of groundbreaking unicorns. In light of these developments, MAGNiTT delved deep into the demographic makeup of founders behind Saudi's 200 most-funded startups from 2014 to 2023 to publish the 10 Years Saudi Arabia Founders Report in collaboration with the Saudi Venture Capital Company (SVC). Over the past few years, Saudi Arabia's venture capital ecosystem has witnessed unprecedented growth and dynamism, shaping the region's landscape for innovation and entrepreneurship. As part of our ongoing commitment to capturing the evolution of this ecosystem, we are excited to unveil our latest report, sponsored by SVC, delving into the profiles of the 400 founders behind the Kingdom's 200 most funded startups from 2014 to 2023. The startup scene in Saudi Arabia has experienced a surge of activity, propelled by a supportive ecosystem, strategic investments, and a wave of entrepreneurial talent. Our report aims to provide a comprehensive analysis of the key trends and insights shaping the founder landscape, offering valuable benchmarks and actionable insights for stakeholders and decision-makers. Based on the founding team structures, startups with two founding members were the most common (45%) and accounted for the lion’s share of funding. https://lnkd.in/d4mnMFsj By MAGNiTT #vc #saudiarabia #startups 2080 Ventures Sun Choi 최성안 Timur Daudpota

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🇸🇦 aramco is the leading employer of VC backed startup founders in KSA! 💼 MAGNiTT’s latest founders report, created in partnership with SVC, analyzed the demographic stats of over 400 founders from the 200 top VC funded startups in #SaudiArabia between 2014 and 2023. 💡 Interesting facts about the 400 founders: - 59% had 7+ years of work experience before founding their company - 66% of them were first time founders - 30% had prior regional startup experience The data also revealed that aramco, the #Kingdom’s national oil giant, took the lead as the primary employer for these VC backed startup founders, comprising 7% of the total, followed by 5% from McKinsey & Company. The list also included several other notable entities like Careem, Microsoft and PwC Curious to learn more about the anatomy of a successful founder? Download our full founders report here: https://lnkd.in/djBrp9xp CC: Nabeel Koshak, Osamah Alamri, PhD #KSA #founder #startup #workexperience #topcompanies 

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Will you be at FII Institute''s inaugural Investor Day on Thursday? The #FII summit in Riyadh has a dedicated day on Venture and Private Capital bringing the global financiers together to discuss VC/ PE in KSA and the region. 🧲 Want to swot up on the venture landscape in Saudi Arabia, MAGNiTT has you covered! Our latest quarterly report, sponsored by SVC, reveals that: 🇸🇦 The Kingdom accounted for 39% of MENA’s total funding. 🔻KSA experienced the least funding decline among emerging markets. 🔺Alongside the UAE and Egypt, KSA saw a YoY increase in closed deals in 9M'24. 🚀 Remarkably, international investment in KSA surged by 71% in 9M'24. Get ready to dive into KSA’s investment landscape at the #FII Summit: https://lnkd.in/d93BDU_f Let me know if you are around below👇? I'll be there on Wednesday and Thursday and love to catch up 👋 #FutureInvestmentInitiative #FII2024 #Vision2030 #InvestInSaudi #MENA #Innovation #InvestmentTrends #KSA #UAE #Egypt 

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Saudi Arabia’s startup ecosystem has affirmed its leading position in the funding space, capturing over 53 percent of the region’s venture debt financing in 2023, according to MAGNiTT’s latest report. The venture data platform revealed that Saudi startups raised a total of $400 million in venture debt last year, a 602 percent growth compared to $57 million in 2022. Venture debt is a type of financing for early-stage companies that complements equity funding. It includes growth capital for expansion, equipment financing for asset acquisition, and accounts receivable financing for managing cash flow. The Middle East and North Africa region saw a total of $757 million in venture debt financing in 2023, a 262 percent year-on-year growth. The UAE followed Saudi Arabia with a total of $353 million in financing in 2023, a 222 percent yearly increase. Egypt came in third with $4 million, an 86 percent annual drop. Fintech emerged once again as the sector of choice for investors, accumulating $601 million in financing, a 325 percent yearly increase. #MENA #GCC #Investment #fundraising #Startups #Venturedebt #privatequity #Venturecapital #Saudiarabia #UAE #Egypt

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Cash is king! How can Corporates leverage their financial firepower during a VC funding downturn? During times of limited liquidity, corporations wield significant power to bolster startups through financial investments and strategic acquisitions. Healthy Corporate participation is a sign of a maturing and developing startup ecosystem. Many Corporates in the MENA region are beginning to either 1) Invest off balance sheet 2) Set up Corporate Venture Funds 3) Build out incubators and accelerators specialized in their domain Not only that they can be a hotbed of education and learning to inspire future founders who look to disrupt their industries. In the #UAE and #SaudiArabia in particular, we’ve seen a rise in the participation of CVCs. In fact, a recent report by PwC Middle East used data sourced from MAGNiTT to explore the increasingly vital role of CVCs in #GCC markets. I recommend giving it a read: https://lnkd.in/dv4uZeXr Interested to learn more? I had a great chat with Sharif El-Badawi, CEO of Dubai Future District Fund on this and much more in our monthly webinar series where we discussed the #Q1 downturn and the road ahead for #MENA: https://lnkd.in/dxbP9_h7 Are you going to the DIFC #DIFCFinTech summit today? I will be, come say hi or DM me, love to grab a coffee #webinar #Q1data #CVC #venturecapital

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Personal observations on the current status of our Tech ecosystem in MENA: 🤔 1- Many entrepreneurs still find it hard to navigate the entrepreneurial journey: how to start, how to raise funds, how to scale, whom to hire, how to structure? The bright side is that many entrepreneurs are just starting!! My two cents: surround yourself with the right people first. 😃 💰 2- Early-stage VC investments are estimated at over USD 3 billion per year. Although this number was zero 18 years ago when I started in this industry, I believe this $3 billion figure is still minute... just compare it to the size of the GDP and you’ll see the delta... my two cents: unless we accelerate exit velocity, we won’t grow further. M&A and local IPOs are a must. 🔔 🌳 3- Resilience, resilience, resilience: especially now! If you’re not patient (and by patient, I mean patient, resilient, an eternal optimist, and just wired this way - this is not for you...), there’s joy when olive tree farmers wait years to grow olive trees and make their oil... you’re a farmer, not a trader. Pick your side and never look back. 🫒 📉 4- Profitability… the days of high growth at any cost are gone... I still see many entrepreneurs behaving this way. We had an amazing 10 years of cheap money era... the run is over, accept it, and build a solid business first. 📈 🧍 🧍‍♀️ 5- Egos: It’s never about you; it’s about what you leave for the next person behind you. Your company is not yours, although you may have created it. You could be its temporary captain, but it’s never yours... it’s everyone’s company (customers, investors, employees, and co/founders or co-captains). Leave your ego at home. 🧍‍♂️ 🧍‍♀️

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Saudi venture capital sector expanding exponentially Saudi Arabia's venture capital sector is booming, and global venture capital firms are taking notice. Recently, Saudi Venture Capital Co. invested $30 million in a private equity fund managed by General Atlantic, a US-based investment firm with a portfolio of $84 billion in assets under management. This investment is part of SVC's Investment in Funds Program and is aimed at attracting top global fund managers to invest in Saudi-based companies, stimulating investment for later stages. With this move, the Saudi venture capital landscape is set to see significant growth. Post by Nour Edin El Shaeri Repost by Salem Bagami Chief Executive Officer Digital Transformation Company & Managing Director 2080 Ventures Email: [email protected] Website: www.2080.ventures https://lnkd.in/d6YK7Hfp Nabeel Koshak Sun Choi 최성안 Timur Daudpota #SaudiVentureCapital #GlobalInvestment #GeneralAtlantic

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In the dynamic realm of business, #SaudiArabia’s startup ecosystem stands as a beacon of progress. Fuelled by the #Vision2030 initiative, the Kingdom is fervently diversifying its economy, with a strategic emphasis on nurturing a vibrant startup culture. This transformative journey is reshaping Saudi Arabia’s economic landscape and presents extensive opportunities for entrepreneurs and investors worldwide. In a significant milestone, Saudi Arabia’s startup ecosystem secured the top spot in regional venture funding activities in 2023, amassing a record-breaking $1.38 billion in capital. This achievement positioned the Kingdom as a frontrunner in venture capital funding across the Middle East and North Africa, surpassing the $1 billion mark for the first time, as per MAGNiTT’s Saudi Arabia FY2023 report. During the year, the funding for Saudi Arabia’s startup ecosystem experienced a 33% increase from the $987 million raised in 2022, indicating a robust growth trajectory. Furthermore, the Kingdom’s share of total venture capital funding in the MENA region also substantially rose, from 30% in 2022 to 52% in 2023. Notably, the Kingdom attracted $879 million in mega-rounds—individual funding deals surpassing $100 million—reflecting strong investor interest in the region’s startup scene. #Deeptech #Investments #fundrasing #funding #funds #startups #Saudiarabia #PIF #familyoffices #VCs #privateequity #MENA #GCC

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Exploring Venture Capital Valuations in MENA: Jada Fund of Funds Report Valuing portfolio companies is a critical aspect of the venture capital process, filled with challenges, especially in the context of startups in emerging markets. With the collaboration of Jada Fund of Funds, our newly launched report delves into the methodologies used by venture capitalists and provides insights gathered from seasoned fund managers and investors across the MENA region. Key Valuation Methodologies 1. Discounted Cash Flow (DCF) Analysis: - DCF Method: This involves estimating the company's future cash flows and discounting them back to their present value using an appropriate discount rate. - Challenges: In the case of startups, projecting future cash flows can be highly speculative due to the limited historical data and market volatility. 2. Comparable Company Analysis: - Comps Method: This method involves valuing a company based on how similar companies in the industry are being valued, often using multiples such as Price-to-Earnings (P/E) or Enterprise Value-to-EBITDA (EV/EBITDA). - Benefits: It helps to benchmark valuations against market standards. - Drawbacks: It might be difficult to find truly comparable companies. 3. Precedent Transactions: - Transaction Method: This approach looks at similar companies that have been recently sold or funded and uses these transactions to estimate value. - Advantages; Provides real-market benchmarks. - Limitations: Market conditions at the time of past transactions might differ from the current context. 4. Venture Capital Method (VC Method) - VC Method: Commonly used in early-stage investments, this method involves projecting an exit scenario, estimating the terminal value, and discounting it back to the present considering the risk. - Simplicity and Relevance: It is straightforward and tailored for high-risk environments but relies heavily on assumptions about future exits. 5. Modified Economic Value Added (EVA): - EVA Method: Focuses on the economic profit of the company by assessing returns in excess of the company’s cost of capital. - Usefulness: Particularly useful in assessing long-term value creation beyond accounting profits. Insights from Experts Challenges in the MENA Region - Limited Historical Data: Startups in emerging markets often don’t have a long operating history, making traditional valuation methods less reliable. - Market Volatility: The dynamic and often volatile nature of emerging markets adds another layer of difficulty in making accurate projections. - Regulatory Environment: Varying regulations across different countries in the MENA region can also impact valuation. By addressing these challenges and leveraging a mix of valuation methodologies, venture capitalists are better equipped to make informed investment. Report by Claudia Zeisberger Repost by Salem Bagami #VC #valuation #startups #MENA #JadaFund

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Why Understanding PIF Is Key to Grasping Saudi Arabia's Bold Economic Transformation The Public Investment Fund (PIF) is the driving force behind Saudi Arabia's Vision 2030, aspiring to become the largest sovereign wealth fund in the world by 2030 and the biggest supporter and capital investor in Saudi Arabia, even becoming the greatest capital investment from the government. The fund relies on multiple income sources to achieve this ambitious goal, strengthening its pivotal role in transforming the Saudi economy into a sustainable and diversified one. 𝐏𝐈𝐅'𝐬 𝐒𝐨𝐮𝐫𝐜𝐞𝐬 𝐨𝐟 𝐈𝐧𝐜𝐨𝐦𝐞: 1. Government Capital Injections: This refers to the direct funding the Saudi government provides to support PIF's major projects. 2. Transferred Government Assets: This includes the transfer of ownership of government-owned companies or large real estate assets to PIF. 3. Loans and Debt Instruments: PIF raises capital by issuing bonds and sukuk in local and international markets. 4. Returns from Investments: The reinvestment of returns generated from PIF's existing investments to fund new projects. 5. Sale of Matured Assets: PIF employs a strategy of selling matured assets after maximizing their value while retaining a controlling stake. 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐒𝐞𝐜𝐭𝐨𝐫𝐬 𝐚𝐧𝐝 𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐜𝐨𝐦𝐩𝐚𝐧𝐢𝐞𝐬: 1. Aerospace and Defense: 5 co. 2. Automotive: 3 co. 3. Construction and Building Components and Services: 6 co. 4. Consumer Goods and Retail: 6 co. 5. Entertainment, Leisure, and Sports: 8 co. 6. Financial Services: 12 co. 7. Food and Agriculture: 5 co. 8. Healthcare: 3 co. 9. Metals and Mining: 3 co. 10. Real Estate: 15 co. 11. Telecom, Media, and Technology: 5 co. 12. Transport and Logistics: 3 co. 13. Utilities and Renewables: 10 co. 𝐓𝐲𝐩𝐞𝐬 𝐨𝐟 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬: 1. MENA Investments: 13 co. 2. International Investments: 12 co. 3. Local Real Estate Investments: 1 co. 4. Local Investments: 31 co. 5. Wholly-Owned co.: 33 co. 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐏𝐨𝐨𝐥𝐬: 1. Global Strategic Investments Pool: 7 co. 2. Global Diversified Investments Pool: 1 co. 3. Sectoral Development Investments Pool: 54 co. 4. Saudi Equity Holdings Pool: 14 co. 5. Saudi Real Estate and Infrastructure Development Pool: 19 co. 6. Saudi Giga-Projects Pool: 5 co. 💡 This diversity is part of a meticulously crafted strategic framework. You won’t fully grasp why Saudi Arabia invests so heavily in sports unless you understand the broader investment strategy. And you can’t truly comprehend this strategy without understanding the PIF's objectives. Furthermore, you won't fully appreciate the PIF’s strategy unless you understand Saudi Vision 2030, as the fund is one of its eleven key programs. Therefore, misguided judgments often arise from systematically analyzing a single project without considering the broader investment strategy and Vision 2030.

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🎙️ Shared my latest insights with Asharq Business اقتصاد الشرق on the evolving VC trends across MENA, with a special focus on the Kingdom of Saudi Arabia! In our discussion, we dove into the key findings from our MAGNiTT H1 report and explored: - Why investors are increasingly shifting toward early-stage investments - The critical role Fund of Funds like SVC and Jada Fund of Funds play in driving innovation and funding within the Kingdom - The government’s strategic focus in #KSA, led by the Ministry of Communications and Information Technology of Saudi Arabia - The continued dominance of #FinTech, which is set to be further catalyzed by the upcoming 24 Fintech event in #Riyadh in September (Fintech Saudi | فنتك السعودية) - The next big sector for investors: Deep Tech Catch the full interview below 👇 You can also download our H1 Emerging Venture Market Report here: https://lnkd.in/d52uW2cH What are your thoughts? Will we see an uptick in investment in H2? 👀 Bloomberg #Venture #Investment #Funding #MAGNiTT #VC #SaudiArabia #Innovation #KSA

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The Transformational Journey of PIF: From Vision to Global Economic Powerhouse 🔸️ The Public Investment Fund (PIF) was established in 1971 as a critical instrument for driving economic growth in #SaudiArabia through strategic #investments. Over the years, PIF has evolved significantly, but the real transformation began with Vision 2030. Under this ambitious plan, the fund was restructured to become the central engine of the Kingdom’s economic development. 🔸️ In 2015, with the rollout of #Vision2030, the #PIF adopted new strategies focusing on economic diversification and sustainability. These efforts led to the fund’s assets soaring from 150 billion SAR ($40 billion) to 861 billion SAR ($229 billion) by 2024, with annual returns rising from 2-3% to over 8%. 🔸️ When Crown Prince Mohammed bin Salman announced in 2016 that PIF would become the world’s largest sovereign wealth fund, valued at 7.5 trillion SAR ($2 trillion), many considered this vision ambitious, even unattainable. However, as time has shown, the PIF has met and exceeded these expectations, emerging as a pivotal force in transforming Saudi Arabia’s economy. 🔸️ In a 2021 interview, Crown Prince emphasized that the PIF would grow in size and diversify its investments significantly. The fund aims to grow its assets to 10 trillion SAR ($2.67 trillion) by 2030, positioning it as the largest sovereign wealth fund globally. This strategic shift will enable the PIF to inject 160 billion SAR ($42.67 billion) into the Saudi economy in 2021, with plans to increase this amount to 400 billion SAR ($106.67 billion) annually by 2030. These substantial investments are channeled into mega projects like NEOM, Qiddiya, the Red Sea Project, and other giga projects integral to steering the Saudi economy toward a more sustainable and innovative future. 🔸️ Today, the PIF is an economic powerhouse and a key driver of new investments within the Kingdom. The fund's domestic spending has surged from 3 billion SAR ($800 million) annually before Vision 2030 to 90 billion SAR ($24 billion) in 2020 and then to 160 billion SAR ($42.67 billion) in 2021. This spending is primarily directed toward Greenfield projects—new investments across #tourism, #entertainment, #energy, #technology, and #GigaProjects. By 2030, the PIF's annual expenditure is projected to reach 400 billion SAR ($106.67 billion), making it the leading driver of capital expenditure in Saudi Arabia, surpassing the state budget. 💡 This is my first post in a series aimed at raising awareness about the strategic objectives of the Public Investment Fund, which go far beyond individual projects. This monumental shift in the fund's size and impact underscores its crucial role in realizing Vision 2030 and transforming Saudi Arabia into a global economic powerhouse. #PublicInvestmentFund #SaudiEconomy #SustainableDevelopment #MegaProjects #EconomicGrowth #Innovation #GreenfieldInvestments

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The largest meetup for sports investors and leaders! The Sport Investment Forum (SIF) will take place in #Riyadh, @SaudiArabia, from April 7-9, 2025. This global event is the ultimate platform for bringing together leaders, investors, and decision-makers to discuss the latest trends and explore $50B+ investment opportunities in sports projects. Key highlights of the forum: ✅ 30 strategic axes, 80 speakers, 20 business sessions, and 15 workshops ✅ Cutting-edge sports innovations from top global companies ✅ Unmatched networking opportunities with over 1,000 senior executives and decision-makers from 60+ countries The forum will address five critical topics: 1️⃣ Sports technology and innovation 2️⃣ Sustainable development in sports 3️⃣ Empowering women in the sports industry 4️⃣ Health and social impact through sports 5️⃣ Global partnerships and economic growth From my observations: Many untapped opportunities remain in key sports sectors, promising significant growth and high returns for investors. #SportsInvestment #SportsInnovation #GlobalPartnerships #SustainableSports #Vision2030 #RiyadhEvents #SaudiSports

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