The growth of the startup ecosystem in Saudi Arabia over the past decade has been highlighted in a new report released by MAGNiTT and sponsored by the Saudi Venture Capital Company. This report sheds light on the significant progress made by Saudi startups, with over 200 startups receiving more than SR12 billion in venture capital funding during the past 10 years. Dr. Nabil Koshak, CEO of SVC, attributes this growth to the Kingdom’s Vision 2030 and the innovation and entrepreneurship initiatives driving the entrepreneurial momentum in the country.
The “10-Year Report on Startup Founders in Saudi Arabia” provides valuable insights into the characteristics of founders who have secured significant investment financing over the past decade. According to the report, 44% of companies were founded by multiple partners, receiving the majority of the total venture capital funding. On the other hand, companies with a single founder represented 30% of startups but only received 15% of the total financing from 2014 to 2023. This information highlights the importance of collaboration and partnership in driving the success of startups in the Kingdom.
Dr. Koshak emphasized SVC’s commitment to supporting the development of such reports, providing decision-makers, government officials, investors, and founders with valuable insights and data for strategic decision-making and policy development. This data will play a critical role in enhancing the growth of the startup ecosystem in Saudi Arabia over the next decade. Philip Bahoshi, CEO of MAGNiTT, also stressed the importance of the report in promoting transparency in Saudi Arabia’s private investment landscape, as part of ongoing efforts to enhance transparency within the industry.
The report also revealed that 36% of the 400 founders had over 10 years of work experience before founding their startups. Interestingly, 66% of these founders had their first experience launching a startup, while 30% had prior startup experience at the regional level. These findings indicate a diverse range of experiences and backgrounds among Saudi startup founders, highlighting the potential for innovation and growth within the country’s entrepreneurial ecosystem.
Overall, the report on startup founders in Saudi Arabia underscores the significant progress and growth of the country’s startup ecosystem. With over SR12 billion in venture capital funding and a diverse range of founders with varying levels of experience, Saudi startups are well-positioned for continued success and growth in the coming years. By providing valuable insights and data, these reports will play a crucial role in driving strategic decision-making and policy development to further enhance the Kingdom’s entrepreneurial landscape.
