Nabil Koshak, CEO of the Saudi Venture Capital Company, has announced that more than 13 emerging Saudi companies are preparing their files for public offerings over the next two years.
During a discussion with Al Sharq channel, Koshak noted a significant increase in startup exits in the kingdom, with a variety of exit strategies including acquisitions, mergers, and stock market listings. The frequency of such exits has surged from an average of two per year to 17 over the past two years, including the notable listing of Jahez on the Saudi stock market.
Key factors contributing to the burgeoning investments in venture capital, particularly within the fintech sector, are the continual updating of regulations and the provision of a supportive experimental environment that offers startups both flexibility and financial backing.
RelatedNews
Koshak highlighted that the company’s primary focus in the past three years has been on the fintech sector. This is evident by their investments in two funds dedicated to this domain. Moreover, 70% of the 53 funds in which the company has stakes allocate investments to fintech, accounting for 35% of the total invested capital.
The CEO elaborated on the company’s role in stimulating investors to inject funds into startups at various stages, from ideation to market launch, while also bridging funding gaps for emerging companies and supporting the funds that invest in them.
He anticipated that educational technology, healthcare, and investments in the environment and alternative energy are likely to be among the most active sectors in the startup scene moving forward.
Koshak also shed light on the startup survival rates, stating that while 50% of startups fail to sustain and exit the market, about 30% manage to double their capital. Between 10% to 20% of startups succeed in boosting their capital by up to 30 times, which enables venture capital funds to offset risks and realize profits.
