Riyadh – Mubasher: Technology startups incubated by the Badir Program for Technology Incubators and Accelerators, one of the leading initiatives of King Abdulaziz City for Science and Technology (KACST), raised a record SAR 236 million ($62.93 million) in 2019, led by venture capital firms, individual investors, private companies, and governmental institutions.
The total funding for startups increased to SAR 508 million ($135.47 million) from 2010 until the end of December 2019 across 184 deals, according to a statistical report compiled by the Business Incubators and Accelerators Company (BIAC), which manages and operates the Badir Program.
Nawaf Al Sahhaf, CEO of BIAC, commented: “As the startup environment is thriving in Saudi Arabia, we have seen more of the startups succeed in receiving significant investments from several investors. The success of startups provides an incentive for encouraging and enhancing the entrepreneurship environment in the market.”
Furthermore, the report revealed that venture capital firms were the most active in terms of funding size, dominating 40% or SAR 203 million of investments into startups, followed by private sector companies provided SAR 168 million, or 33% of the total funding, and individual investors with SAR 104 million, or 20% of the total.
Government institutions invested SAR 35 million, or 7% of the total.
The increase in investments reflects the maturing startup environment in the Kingdom of Saudi Arabia and the continued and growing interest of local and international investors. Furthermore, the number of startups incubated in the Badir Program rose to 655 companies since inception until the end of the third quarter of 2019.
The Badir Program was established in 2007 by the King Abdulaziz City for Science and Technology (KACST) to support and provide opportunities for technology and innovation business enterprises, while BIAC is a state-owned subsidiary of the Saudi Technology Development and Investment Company (TAQNIA), which is owned by the Public Investment Fund (PIF).
