Technology startups incubated by the Badir Program, one of the main initiatives of King Abdulaziz City for Science and Technology (KACST), have successfully raised more than SR48 million ($12.79 million) during the year 2017.
This was through 15 funding deals led by supporting venture capital firms, individual investors’ networks and governmental institutions, recording a 64 percent increase in comparison with the previous year.
Funding by venture capital firms amounted to SR34.5 million approximately, which was divided into five startups. Individual investors funded eight companies with SR11.89 million, while funding by the Social Development Bank reached SR1.9 million approximately in the form of loans presented for the benefit of two startups.
As a result of the “Demo Day” event organized by the Badir Program three times a year for the purpose of joining startups with investors, the concluded deals amounted to half of the number of investment funding deals after announcing eight deals amounting to SR12.4 million approximately.
Seven deals were concluded outside the competitive enterprises showcase with an overall value of SR35.8 million approximately.
It is likely that the overall size of investment funding of startups will increase after disclosing the results of the third edition of the “Demo Day” event, which was held last month.
“Demo Day” aims at presenting, studying and facilitating the funding of promising investment opportunities among the technology startups incubated by Badir.
Nawaf Al-Sahhaf, CEO of the Badir Program for Technology Incubators, said that several factors have contributed in increasing the size of funding this year, namely the rise in the number of funding and risk investment companies, lending platforms and individual investor networks, which have become increasingly active recently.
“Disclosing the deals of funding startups will result in raising awareness and transparency in relation to the funding environment within the local market, especially with the persistence of the funding gap affecting and hindering the companies in turning from an emerging company to complete commercial businesses capable of attracting investment capitals,” he said.
“We look forward to supporting startups which have the basic factors that enable them to make quantitative changes in the main technology sectors,” Al-Sahhaf added.
Source: https://www.zawya.com/mena/en/story/Saudi_tech_startups_raise_over_1279mln_in_2017-SNG_108284035/