Saudi Arabian startups raised a total of $16.3 million in February

Financials Author: EqualOcean News Mar 06, 2024 09:05 AM (GMT+8)
Finance / investment

In February 2024, startup fundraising in Saudi Arabia totaled $16.3 million, a 48.18% increase from January 2023, making Saudi Arabia the second highest fundraising country in the MENA region in this sector. This achievement not only demonstrates the vitality and growth potential of the Saudi startup ecosystem, but also reflects international investors' recognition of Saudi Arabia's high-tech innovation capabilities.

The total amount of investment received by all startups in the MENA region in February was reported to be $88.7 million. Topping the list were startups in the UAE, which received 22 investments totaling $65.6 million, but Flare Network's $35 million raised accounted for more than half of that total. Only two startups in Egypt raised a total of $4.6 million.

In terms of sectors, Web3 was the focal point of the investment market this month, with companies raising nearly $40 million, the food tech sector was also strong, raising $21 million in two deals, and fintech and logistics startups raised $6.9 million and $5.4 million, respectively. Seed rounds accounted for the majority of funding, with 11 companies raising a total of $25.5 million in this round.

The Saudi government has continued to promote the diversification of the country's economy and the development of science, technology and innovation, not only by giving financial support, but also by including a variety of measures such as providing policy incentives, building innovation infrastructure, and organizing high-tech conferences and summits, which have greatly contributed to the prosperity of the innovation ecosystem.2023. The total amount of venture capital investments received by Saudi companies once again surpassed the $1 billion milestone and hit an all-time high with a total of $1.383 billion, an increase of 33% from 2022. This also increases Saudi Arabia's share of overall financing in the Middle East from 30% in 2022 to 52% in 2023.

The performance of Saudi startup financing reveals a huge market opportunity, especially in high-tech sectors such as fintech, e-commerce, digital health and artificial intelligence, where Chinese companies have been performing well. As the Saudi government continues to promote economic diversification and technological innovation in line with Vision 2030, Chinese startups can continue to participate in this innovation ecosystem, which will help Chinese companies' internationalization strategy and strengthen Sino-Saudi cooperation and exchanges in the field of science and technology innovation.