Saudi startup funding hits record high in first half of 2019: MAGNiTT

The first half of 2019 saw $40 million invested in Saudi-based startups, which is a record amount of total funding in any first half of the year, Dubai-based online start-up platform MAGNiTT said in its latest report.

Notable investments include the ones in Noon Academy, the EdTech startup that raised its $8.6 million Series A round, as well as Nana, the grocery delivery company that raised $6.6 million in its Series A round, said the report ‘H1 2019 Saudi Arabia Venture Capital Snapshot’ sponsored by Saudi Venture Capital Company (SVC).

Not only was H1 2019 a record first half of the year, total funding increased by 82 percent from H1 2018 to H1 2019. This indicates increased appetite from local and international investors in Saudi-based startups, as well as startups beginning to graduate to later stages of development, the report added.

In total, there were 26 investment deals in Saudi-based startups in H1 2019. Similar to total funding, this was a record number compared to any first half of the year previously, with notable new investors such as SVC and MiSK 500 MENA Accelerator emerging onto the scene, MAGNiTT report maintained.

With 26 investment deals, H1 2019 saw an increase of 44 percent compared to H1 2018, as more startups are set up, going through accelerator programs, and receiving investment from venture capital (VC) firms and other institutional investors.

This number is expected to increase in H2 2019, as more institutions come in and are set up, MAGNiTT said in the report adding that the startup ecosystem in Saudi Arabia is growing quickly, with an increase in deals, funding, number of investors and government initiatives, among other things.

A total of 30 institutions invested in Saudi-based startups in H1 2019, with both local Saudi VC firms, accelerators and other institutions, as well as international investors participating in funding rounds, MAGNiTT noted.

Active local investors include Ra’ed Ventures, Wa’ed Ventures, Riyad Taqnia Fund, SVC, and STV, among others.

Overall, Saudi Arabia accounted for 11 percent of number of deals in MENA in H1 2019, up 1 percent from H1 2018.

Write to Sunil Kumar Singh at sunil.kumar@argaamplus.com