First crowdfunding campaign in September, says Manafa’s CEO

Manafa Capital Co. is arranging for launching the first crowdfunding campaign for a startup in September, Al-Eqtisadiah newspaper reported, citing Abdulaziz Al-Adwani, Manafa’s CEO.

The company works on attracting promising startups that work in the technical and industrial fields, he said.

Investing in startups involves high risks, so investors should diversify their investment portfolios in order to achieve better returns, he added.

Saudi Arabia's Capital Market Authority (CMA) last week granted financial technology experimental permits (ExPermit) to Manafa, to be the first Saudi firm to create equity crowdfunding platforms.

These offerings allow entrepreneurs to get funding through a crowdfunding platform, such as Manafa’s, as a new option to access finance after it was only available through banks and finance companies.