Saudi Arabia’s new VCPE asset class needs incubation environment, Jada says – News
Jada has participated in providing investment capital to more than 250 promising companies, as well as supporting their development and growth.
Saudi Arabia’s new asset class, venture capital and private equity (VCPE) needs support, empowerment and an incubation environment to thrive, according to Jada’s latest report ” Year in Review 2020: Financing Saudi Arabia’s Future ”.
Jada’s mission as a fund of funds is to provide finance to Saudi Arabian SMEs through commercially sustainable investments in private equity and venture capital funds. As such, Jada must support these funds with investments and help mitigate risks so that the funds can continue their efforts to spur development. Jada plays the role of facilitator and since 2020 it is a priority to raise awareness of the importance of this sector and this activity for the future of the Saudi economy.
Jada was created to promote the development of a thriving Venture Capital and Private Equity (VCPE) ecosystem, which in turn could finance the growth of small and medium enterprises in Saudi Arabia in a sustainable manner. Initiated by a resolution of the Council of Ministers, Jada was established by the Public Investment Fund with an investment capital of 4 billion SAR (approximately $ 1 billion).
The creation of Jada is an essential part of Saudi Arabia’s Vision 2030, the Kingdom’s comprehensive economic and social development plan. Jada seeks to partner with VCPE funds focused on the Saudi market and committed to international best practices in governance and fund management.
Mazen Ahmed AlJubeir, Chairman of the Board of Directors of Jada Fund of Funds, said: “Since its inception, Jada aspires to serve the private sector, especially SMEs and startups, by fostering the development of a dynamic ecosystem of venture capital and private equity (VCPE) investment funds. In 2020, we committed SAR 1.14 billion ($ 304 million) to 14 investment funds and are proud that our activities have started to positively affect the lives of our fellow citizens and residents.
Jada has participated in providing investment capital to more than 250 promising companies, as well as supporting their development and growth. These companies in turn have been able to create many promising career opportunities for our citizens and residents, as well as improve the lives of consumers with new and better goods and services. We are also proud that our business has contributed to a trend of accelerating investment in SMEs, with last year seeing 55% year-over-year growth for venture capital funding in startups. Saudi women.
AlJubeir said, “We aim to contribute to the development of a thriving economy through continuous efforts to support SMEs in the years to come. On behalf of myself and my fellow board members, we assure you of our dedication to the vision and its goals and express our deep appreciation for the wise and ambitious leadership of our country, as well as the great support and advice from our shareholder, the Public Investment Fund.
Jada has entered into partnership agreements with investment funds to finance emerging companies in the consumer discretionary, information technology and finance sectors, as well as in the F&B sector. In 2020, Jada participated in 177 seed fundraisers, 61 Series A, 9 Series B, 2 Series C and 1 Series D. In 2020, Saudi Arabia saw a 55% increase in total funding deployed for Saudi startups, reversing the slowdown observed in the rest of the Middle East and North Africa (MENA) region.
Adel Al Ateeq, CEO of Jada Fund of Funds, said: “As we move forward into 2021, we want to deepen and address the remaining challenges that Saudi Arabia faces before fully unleashing its economic potential. Therefore, Jada will continue to support funds that identify the most promising companies. “
Magnitt’s first half 2021 venture capital investment in Saudi Arabia (KSA) report shows that in the first half of 2021, venture capital funding in Saudi Arabia grew 64% year-on-year, accounting for 94% % of venture capital invested in 2020. The nation has seen record levels of semi-annual capital raised during H12021, accounting for 14% of Mena VC funding. Saudi Arabia overtook Egypt to rank second in terms of share of Mena’s total funding, while accounting for 22% of the region’s venture capital deals. – [email protected]