Amidst the burgeoning startup landscape in Saudi Arabia, male founders have been dominant, with 91% of startups owned by men. However, startups founded by two individuals are proving to be particularly influential, representing nearly half of the kingdom’s venture capital investment. Dual-founder companies have attracted a significant $1.7 billion compared to $506 million for solo founders, $728 million for trios, and $316 million for teams larger than four.
The startup scene in Saudi Arabia is witnessing a surge, fueled by a supportive ecosystem, strategic investments, and a wave of entrepreneurial talent.
A recent report on Saudi startup founders reveals a male-dominated venture capital scene, with male-only founders in 91% of 200 examined startups. Yet, there’s a rise in female-founded and gender-mixed startups, reflecting increased focus on diversity and inclusion. This aligns with global movements towards gender equality in entrepreneurship, with two-person startups being the most common, claiming the lion’s share of venture capital investment at 45%.
Educational and Professional Background
Saudi startup founders come from diverse educational and professional backgrounds, with the majority holding at least a Bachelor’s degree. While many have attended elite international institutions like Harvard and Stanford, a significant number have also graduated from local universities such as King Saud University and King Fahd University of Petroleum and Minerals.
In terms of experience, most founders have a wealth of knowledge in various sectors, particularly information technology. Interestingly, the majority of founders are seasoned professionals with over 10 years of professional experience, a common trait among global startup founders.
Investment Value
The report also delves into the startups among the top 200 in terms of investment value over the past decade, offering insights into the founders’ backgrounds. Understanding the profiles and experiences of these founders offers stakeholders valuable perspectives on the key drivers of startup success and potential collaboration and growth opportunities.
Investment values based on the size of the founding team and their proportion of the total number of startups:
- Single founder – 30%, Total venture capital investment: $506 million, Proportion of total venture capital: 15%
- Dual founders – 44%, Total venture capital investment: $1.7 billion, Proportion of total venture capital: 53%
- Tri-founder teams – 18%, Total venture capital investment: $728 million, Proportion of total venture capital: 22%
- Teams of four or more – 8%, Total venture capital investment: $316 million, Proportion of total venture capital: 10%
Highest educational level of Saudi startup founders:
- Bachelor’s degree – 55%
- MBA – 18%
- Master’s degree – 17%
- Ph.D. – 7%
- Other – 2%
Prior positions held by founders before establishing their startups:
- Founder/Co-founder/Board member – 31%
- Mid-level – 25%
- Senior-level – 18%
- Executive-level – 15%
- Entry-level – 4%
- Other – 7%
