Saudi Venture Capital Partners with Raed Ventures to Ignite Tech Innovation in the Kingdom
3 min
Investment Purpose: Drive growth for tech and tech-enabled startups in Saudi Arabia and the MENA region.
Sectors of Focus: Fintech, enterprise software, and B2B SaaS.
Funding Stages: Primarily targeting Seed and Series A rounds.
Alignment with Saudi Vision 2030: Aims to diversify the economy and foster innovation.
Past Collaborations: Builds on the success of the previous Raed II fund.
If you’ve been following the startup scene in Saudi Arabia lately, you’ve probably noticed the buzz around local tech entrepreneurs. From lively pitch sessions in Riyadh to innovation showcases in Jeddah, there’s a palpable sense of optimism in the air. Now, that excitement has reached new heights with the recent investment from Saudi Venture Capital (SVC) into Raed III L.P., an early-stage venture capital fund managed by Raed Ventures.
The fund will provide critical support for up-and-coming tech startups—particularly in fintech, enterprise software, and B2B SaaS. These sectors have been expanding at a breakneck pace, reflecting the region’s hunger for digital solutions and fresh innovations. We find it inspiring to see local champions stepping forward to meet this surging demand for cutting-edge technology.
During a press conference in Riyadh, Dr. Nabeel Koshak, CEO and board member at SVC, underscored the strategic importance of this investment:
“Our investment in the venture capital fund managed by Raed Ventures aligns with our strategy to back private investment funds that focus on Saudi-based startups at different stages of growth. This commitment aims to accelerate the growth of these startups, diversify the national economy, and contribute to the objectives of Saudi Vision 2030.”
Echoing Dr. Koshak’s enthusiasm, Omar Almajdouie, Founding Partner at Raed Ventures, expressed his excitement:
“We are delighted to continue our strategic partnership with SVC as an anchor investor in Raed III, building upon the success of our collaboration in Raed II. Through its commitment to empowering startups and enabling innovation, SVC has been instrumental in driving the Kingdom’s remarkable progress in this sector.”
For anyone keeping a close eye on Saudi Vision 2030, this move seems like a natural next step. Vision 2030 emphasizes economic diversification and creating new opportunities, particularly for small and medium enterprises. As outlined on the Saudi Vision 2030 official site, technology and innovation sit squarely at the heart of that initiative. SVC itself, established in 2018 as a subsidiary of the SME Bank (part of the National Development Fund), serves as a catalyst to channel funding into promising ventures right from pre-Seed to pre-IPO stages.
Meanwhile, Raed Ventures—founded in 2015—continues to leave a significant mark. With over 50 portfolio companies, including Tabby, Salla, Foodics, Lean Technologies, Mrsool, and Trella, Raed has consistently demonstrated its knack for spotting high-potential startups. It’s particularly noteworthy that their investor base includes SVC, PIF’s Jada, Mubadala, and Almajdouie Holding, showcasing the broad confidence in Raed’s track record.
Ultimately, this investment isn’t just about fueling individual startups—it’s about shaping a brighter economic future for Saudi Arabia and the MENA region. And if the track record of both SVC and Raed Ventures is any indication, we can expect to see plenty of remarkable success stories emerging in the months and years to come inshallah.
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