Saudi startups record 102% jump in venture funding to $95 million in H1 2020: MAGNiTT

Despite the ongoing COVID-19 outbreak, startups in Saudi Arabia recorded a 102% year-on-year (YoY) jump in venture funding in the first half of 2020 to $95 million through 45 deals, up 29% YoY, MAGNiTT’s H1 2020 Saudi Arabia Venture Capital Report showed.

The report, which is sponsored by Saudi Venture Capital Company (SVC), added that 2020 is leading in terms of total funding for the Kingdom’s startups, as H1 2020 funding already surpassed full-year 2019’s $67 million funding.

The total funding in the Kingdom also grew significantly faster than the average in the Middle East and North Africa (MENA) region in H1. While the 17 countries in the region saw a 35% increase in total funding YoY, Saudi Arabia’s funding grew 102%.

In terms of the number of deals, Saudi Arabia saw a 29% increase, while the MENA region reported an 8% drop YoY.

A total of 32 institutions invested in Saudi-based startups in H1 this year, up 7% YoY. While 59% of these investors are based in Saudi Arabia, 41% of them are based outside of the Kingdom – mainly in the US and the UAE.

E-commerce remained at the top spot as the most active industry by both total funding (67%) and number of deals (22%).

Elsewhere, the startup data platform report also said that despite higher funding and deals, the effects of COVID-19 are still felt by many Saudi startups and small and medium enterprises (SMEs).

It noted, however, that many government agencies, including Monshaat, the Ministry of Finance, Saudi Arabian Monetary Authority (SAMA), and General Organization for Social Insurance (GOSI), launched several support initiatives to alleviate the pandemic burden on SMEs.