Saudi Venture Capital Company (SVC)

Back to Atlas

Saudi Venture Capital Company (SVC) is a government initiative to stimulate venture capital investment, foster entrepreneurship, and enable the growth of startups and SMEs through investment in venture funds and direct co-investments.
What are the main aims and objectives?

The main goal of SVC is to catalyze venture capital activity and remove barriers to startup growth in Saudi Arabia. SVC seeks to increase funding accessibility for early-stage and growth-stage companies, drive innovation across key sectors, and build a globally competitive entrepreneurship ecosystem. By addressing equity financing gaps, SVC supports the development of local venture funds and encourages private sector involvement, all aligned with Saudi Arabia’s Vision 2030, which aims to diversify the economy and enhance the contribution of SMEs to GDP.

How does the program work?

SVC operates through two core channels:

  • Fund Investment Program:
    SVC acts as a Limited Partner in venture capital and private equity funds, growth funds, accelerator funds, and startup studios. It typically provides up to 65% of the capital in these funds, reducing the difficulties fund managers face in raising private capital and helping new funds dedicated to Saudi startups launch and scale. Fund selection considers the track record, sector focus, and alignment with national development goals. Fund managers generally target startups and SMEs with high growth potential in areas such as fintech, healthtech, logistics, and e-commerce. The Fund Investment Program is sector-agnostic but prioritizes ventures supporting Vision 2030’s ambitions.
  • Co-Investment Program:
    SVC directly invests alongside institutional VC investors and angel groups in promising startups. These investments typically range between SAR100,000 and SAR1million ($26,000 to $266,000), depending on the stage and needs of the business. Co-investments target both early-stage and scalable companies, helping fill gaps in the local funding ecosystem, particularly at critical seed and Series A stages. This program encourages broader participation from private investors and ensures startups have the operational runway to reach commercial viability.

SVC partners closely with Monsha’at (the General Authority for Small and Medium Enterprises), accelerators, and ecosystem stakeholders. It also hosts events, roundtables, and training programs to build entrepreneurial skills. SVC’s sector-neutral approach and continuous reviews ensure the strategy evolves with market needs. By building trust, lowering investor risk, and leveraging government oversight, SVC helps create sustainable investment flows and a more vibrant startup landscape. Notably, SVC has played a role in Saudi Arabia becoming the MENA region’s top destination for venture capital funding from 2023 onward.

What is the overall cost?

SVC was established with initial capital of SAR2.8billion (about $750million) provided through a state-funded stimulus program. By 2024, the company had committed a total of $1billion in investments, leveraging additional private and partner capital to reach an ecosystem-wide total impact of approximately $4.8billion. In 2024, Saudi Arabia itself secured $750million in VC funding, with SVC accounting for about 40% of total VC capital flows in the region.

How was it implemented?

SVC was launched in 2018 by Monsha’at, under the Private Sector Stimulus Program, in line with Vision 2030’s economic goals. The implementation began with setting clear mandates for fund investment and co-investment, targeting gaps in the startup funding lifecycle. Key stages in implementation included:

  • Designing transparent processes and legal frameworks that balance government oversight with private sector flexibility.
  • Engaging local and global investors to build confidence, share best practices, and ensure effective ecosystem integration.
  • Establishing rigorous selection criteria for funds and startups, focusing on innovation, scalability, and alignment with national priorities.
  • Developing partnerships with accelerators and incubators to expand technical assistance beyond just capital.
  • Launching public awareness initiatives and events to introduce SVC to the market and clarify its value proposition.

SVC adapted its operational model based on feedback from stakeholders, market performance, and international case studies. Ongoing strategy reviews allow the company to evolve its approach to investment and ecosystem support. Advisors from Monsha’at and sector experts guided the design, with implementation supported by experienced investment professionals. Early milestones included the approval of the first SVC-backed funds in 2019, rapid scale-up to over 50 funds by 2024, and participation in milestone events such as the Saudi Venture Capital and Private Equity Association summits.

What impact has been measured?
  • By mid-2024, Saudi Arabia ranked first in the MENA region for VC funding for two successive years.
  • SVC-backed investments have helped create over 12,000 high-quality jobs in Saudi Arabia over the past decade, according to remarks from MEVP leadership in a 2024 press release. This estimate is attributed to SVC’s support of major venture funds and portfolio startups aimed at fostering economic growth in the Kingdom. Additionally, Flat6Labs and SVC’s joint seed fund intends to support the creation of more than 6,000 jobs through investment in early-stage companies, further contributing to private sector employment.
What lessons can be learned?

Several local and international media outlets have observed that SVC’s dominance in the Saudi VC space risks crowding out emerging private fund managers if not managed carefully. Calls for further transparency and continued market feedback are ongoing.

CURATED BY

Tom Hancock

Research Associate
Global Entrepreneurship Network
United Kingdom