Riyadh: Amal Dokhan, one of the kingdom’s first venture capitalists who recently joined the California venture capital firm 500 Startups as a partner, is confident that the Saudi market will continue to grow in 2021.
A seasoned professional with experience in startup investing, business innovation and consulting in the Middle East and North Africa (MENA) region, Dokhan was optimistic when speaking with Arab News.
“What we see now in 2021, the numbers will definitely go up when it comes to Saudi Arabia and the region. The reason is that last year, when things weren’t expected to increase, turned out to be a positive year for many companies and startups, especially in fintech (financial technology), ”she said.
“The year started on a positive note for startups and VCs. A lot of international investors are looking to the Saudi market so I think there is a lot of prosperity this year and we will see a good number of deals as well, ”she said.
The Saudi VC market has matured and now is a good time for startups as the investment appetite is high. The VC environment in the Kingdom has changed, Dokhan believes. There are currently 47 VCs and the number is growing. The increased demand is due to the coronavirus as businesses across the kingdom have been forced to devote themselves to working online and e-commerce has spiked, creating more opportunities for startups and VCs.
Around $ 152 million was invested in Saudi companies in 2020. 500 startups themselves have invested in many companies during this time, she said. The Californian company has conducted more than 50 accelerator programs in Silicon Valley and around the world and has invested in more than 2,500 companies worldwide, including more than 180 companies in the MENA region.
New startups will be selected from Saudi Arabia and the wider MENA region, and the global mentor network of 500 startups will help companies grow and build regional and global connections, she said.
Sanabil Investments, a Riyadh-based investment firm wholly owned by the Public Investment Fund (PIF), has partnered with 500 startups to launch an early-stage accelerator program for Saudi startups.
The Sanabil 500 MENA Seed Accelerator program consists of six programs run by 500 startups over a period of three years for a group of pre- and seed-stage startups from across the MENA region.
Dokhan is involved in the program, which will invest up to $ 100,000 in new startups. There are approximately 15 mentors who support the program from around the world and have extensive experience in promoting startups. The program has already started and is currently in the second week.
“Our Sanabil 500 MENA Seed Accelerator Program is represented here with a fund of 15 million US dollars. . . and Saudi Arabia will be very well represented in the program. When we launched this program, we were very pleased with the number of startups that applied from Saudi Arabia and the region and the applications exceeded 500 in a very short time, ”she said.
