Flat6Labs and SVC launch $40 million Startup Seed Fund for Saudi Arabia

Saudi Venture Capital (SVC), one of the most prominent venture investment ecosystem development companies in KSA, has signed a new investment agreement with Flat6Labs, the leading seed and early-stage venture capital firm in the MENA region, to introduce the “Startup Seed Fund”. The fund is designed to help startups with high growth potential. It will also provide seed capital for more than 20 Saudi startups each year for the next three years.

BLOMINVEST, one of the leading investment management companies in the region, will manage the distribution and marketing of the “Startup Seed Fund” as it will be the exclusive partner for marketing the fund’s units in Saudi Arabia and raise up to SAR 150 million, within 12 months starting from the fund’s launch. The fund will use a highly diversified, systematic investment plan. This will reduce risks and administrative costs for startups in the early stages. It is also intended to invest in and support Saudi startups.

The fund’s size is SAR 150 million and is allocated for the investment of early-stage startups operating in the technology and innovation sectors within KSA. Companies will receive investment in the range of SAR 750,000 to 1,500,000, along with follow-on financing that will allow them to expand within and outside KSA.

Flat6Labs Riyadh Seed Program is offered to investors. This 4-month program runs twice a year and lasts for three years. The program will support entrepreneurs to develop their business skills and provide them with a supportive environment to build their products, test market fit, improve their business models, and pitch to external investors; the program’s first cycle is expected to be held in the beginning of the third quarter.

Dr Nabeel Koshak, CEO of SVC, stated: Our investment in the ‘Startup Seed Fund’ with Flat6Labs is a 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 the investment in their seed and pre-seed stages. This product was designed to encourage the growth of Saudi Arabia’s venture capital industry at all stages.

This fund will support more than 180 entrepreneurs and create over 6,000 jobs in KSA’s private sector. It will also allow Saudi companies to expand within the region via the Flat6Labs regional office. It will contribute to completing the structural transformation process that KSA aspires to by increasing the digital economy’s share of GDP and enhancing the contribution of the non-oil private sector.

Ramez El Serafy, CEO of Flat6Labs, added: “We are pleased to provide investment opportunities to early-stage startups based in KSA, which constitute the cornerstone of the private sector in KSA. We look forward to launching Flat6Labs Riyadh Seed Program. The program will focus exclusively on accelerating economic transformation within KSA. KSA is our first region expansion from Egypt. Flat6Labs experience in seed programs and initial investments have been transferred to our KSA team by Eyad Albayouk (our General Manager in KSA) and Lujain Nasif (our Program Director in KSA). We also look forward to strengthening the team in KSA with more young Saudi talents.”

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