2

Table of
01 Key Stakeholders Takeaways 3

02 Executive Summary 5

Contents 03

Funding Evolution
Yearly Funding Evolution | 2018 - 2022 7

04 Country Breakdown
2022 MENA Country Comparison By Funding 9

2022 MENA Country Comparison By Deals 10

05 Industry Breakdown
2022 Saudi Arabia Industry Comparison By Funding 12

2022 Saudi Arabia Industry Comparison By Deals 13

06 Investment & Exit Analysis

2022 Top 5 Disclosed Funding Rounds 15

2022 Saudi VC Funding By Stage 16

2022 Funded Startups in Saudi Arabia 17

2022 Active Investors 18

2022 Exit Evolution 19

2022 Highlights 20

07 About SVC 22

08 About MAGNiTT 24

2022 Saudi Arabia Venture Capital Report

Key Stakeholders Takeaways
3

Haifa Bahaian Ahmad Alnaimi Bedy Yang

Chief Legal Officer, General Partner, Managing Partner,
SVC STV 500 Global

The Saudi Arabian venture capital market has A record year of funding signals a tipping 500 Global has witnessed an increase in the
been evolving at a very fast pace, especially point in KSA’s venture capital. With growth quality of startups and talent pool in Saudi
on the regulatory and legal fronts. The only set to further accelerate and the Arabia over the past few years. We have the
issuance of the new Saudi Companies Law by Kingdom getting closer to its fair share of VC privilege of working with founders, co-
the Ministry of Commerce and the investment (in-line with its G20 stature). As investors, corporates, mentors and policy
Investment Funds Regulations by the Capital builders, investors, and regulators, we are makers to help advance the country’s startup
Market Authority is a very important step in planting the seeds for the next generation of ecosystem. We are proud to share that more
developing the ecosystem and helping tech unicorns as well as reaping the rewards than 50 startups have graduated from the
entrepreneurs and local fund managers.  As from the seeds that have been sown over the Sanabil 500 MENA Seed Accelerator
Saudi Venture Capital (SVC) is closely past years. At STV, we are in the fortunate program and have been actively investing in
working with the entrepreneurs and fund position to start taking some of our portfolio early-stage startups in the region. Startups
managers, we are able to observe the issues companies public, which will fundamentally are maturing, and we are also thrilled to see
they face and communicate the same to the change the dynamics of both public and our portfolio companies Foodics and
regulators to help in the development of the private markets. I can’t wait to see what the TruKKer among the top 5 disclosed funding
relevant laws and regulations. future holds. rounds in the first half of 2022.

2022 Saudi Arabia Venture Capital Report

Key Stakeholders Takeaways
4

Shane Shin Allen Taylor Saed Nashef

Founding Partner, Managing Partner, Founding Partner,
Shorooq Partners Endeavor Catalyst Raed Ventures

Shorooq Partners has been strongly focusing 2022 was a break-out year for the venture The trifecta of a vast market with high per-
on early-stage investments in the Kingdom of capital ecosystem in Saudi Arabia. Our fund capita GDP, an increasingly efficient
Saudi Arabia for the past five years. As such, invests globally across 40+ markets and this environment for risk capital formation, and a
our conviction in Saudi’s VC ecosystem was the first year ever that the Saudi market growing list of public-sector initiatives
growth remains extremely optimistic driven cracked our own “Top 10” of most active VC supporting tech entrepreneurship under
by the country’s young population, markets -- right up there with Brazil, Vision 2030 makes Saudi Arabia a rising star
accelerated adoption of digital solutions, Indonesia and others. We made 5 new among global startup ecosystems. Today,
talented entrepreneurs as well as visionary growth-stage investments in the country this ambitious founders recognize that KSA is the
government initiatives that are boosting year and saw several of our existing portfolio place to be for building transformative
Saudi’s economy across all angles. We also companies -- Unifonic, Foodics, TruKKer, companies that may shape the future of our
believe that local Saudi companies are Eyewa and others -- raise significant growth region. At Raed Ventures, we’ve seen
uniquely positioned for expansion into other rounds. As we celebrate our first decade of phenomenal progress since we started
MENA countries because they are disrupting supporting founders in KSA with Endeavor, I investing in KSA in 2015. As the ecosystem
the largest economy in the region, proving am very much looking forward to the next 10 matures further it will become more self-
product-market-fit in a dynamic market, and years! sufficient. More startups and startup
growing amidst an unprecedented journey investments will complete their entire
and support driven by the government’s lifecycle locally, spinning the flywheel even
Vision 2030. faster and helping realize the full potential of
tech entrepreneurship in the Kingdom.

2022 Saudi Arabia Venture Capital Report

Executive Summary
5

2022 was a record year for funding in Saudi Arabia with close to $1Bn of Investment
The Kingdom aggregated $987M in funding in 2022 recording a 72% increase compared to 2021

Saudi Arabia accounted for 23% of the total deals in MENA

The VC ecosystem ranked third in terms of total transactions in MENA in 2022 after observing a 3% decline compared to the year before

Saudi Arabia marked 2022 as a record year for Mega Rounds recording three $100M+ rounds
Reflecting signs of a maturing ecosystem, the Kingdom recorded three Mega Deals closed by F&B startup Foodics, FinTech Tamara, and T&L
startup TruKKer accounting for 37% of the total capital deployed

FinTech led the charts for funding and the total number of deals
FinTech was the industry of choice for investors by the number of deals as well as total funding in Saudi Arabia, accounting for 24% of the funding
with $239M raised across 28 deals

Saudi Arabia maintains its position in the top three markets of MENA by funding and the total number of deals
Saudi Arabia remains the second-most funded and the third-most transacted market in MENA

A record number of 104 investors backed Saudi-based startups in 2022

2022 becomes a record year for Investor participation in Saudi Arabia surpassing 2021 numbers by 30% with 104 investors backing Saudi-based
startups

Saudi Arabia recorded the highest number of exits in 2022

Following the general trend in MENA, 2022 saw the highest M&A activity for the Kingdom with 10 exits

2022 Saudi Arabia Venture Capital Report

Yearly Funding Evolution | 2018 - 2022
7

Saudi Arabia saw record-high VC activity as funding increased by 72% compared to 2021 while closing 97% of last year’s deals
- Nearing the $1Bn mark, Saudi Arabia raised $987M in funding in 2022 across 144 deals with $100M+ rounds accounting for 37% of the total funding
- The Kingdom recorded three Mega Deals, $170M Series C by Foodics, $100M Series B by FinTech Tamara, and $100M Series C by TruKKer

5YR venture funding evolution in Saudi Arabia by amount ($) and number of deals (#)

149 144

92
72 $987M
56

$370M
$575M

$125M

Deals

MEGA ($100M+)
$151M Funding Amount
$110M
$59M
$450M $617M Funding
Amount $

2018 2019 2020 2021 2022

2022 Saudi Arabia Venture Capital Report

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2022 Saudi Arabia Venture Capital Report

2022 - MENA Country Comparison | By Funding
9

Saudi Arabia kept its position as the second most funded geography across the Middle East & North Africa
- Raising $987M in funding, Saudi Arabia accounted for 31% of the total capital deployed in the MENA region
- The Kingdom reduced the funding gap difference with the UAE from $917M in 2021 to $203M in 2022

Top countries by total funding ($) in MENA in 2022

0 $1,190M (-20%)

0 $987M (+72%)

0 $517M (+3%)

4 $151M (+405%)

) / ( rank change ‘22 vs ’21

0 $133M (+145%) )+ / - ( % change ‘22 vs ‘21

2022 Saudi Arabia Venture Capital Report

2022 - MENA Country Comparison | By Deals
10

Saudi Arabia accounted for 23% of the total deals in MENA making it the third most transacted market in the region
- Recording a decline in transactions for the first time since 2017, Saudi Arabia closed 144 deals falling short by five deals of 2021’s number
- The difference in transactions recorded by the UAE and Saudi Arabia reduced to just nine deals compared to 23 in 2021

Top countries by number of deals (#) in MENA in 2022

1 160 (-3%)

1 153 (-11%)

=0 144 (-3%)

1 45 (+18%)

) / ( rank change ‘22 vs ’21

1 30 (+15%) )+ / - ( % change ‘22 vs ‘21

2022 Saudi Arabia Venture Capital Report

 11

2022 Saudi Arabia Venture Capital Report

2022 - Saudi Arabia Industry Comparison | By Funding
12

With a 167% increase in funding, FinTech jumped two spots in 2022 to become the most funded industry in Saudi Arabia, mirroring its peer MENA markets
- Surpassing EdTech and E-commerce, the top two industries in 2021, FinTech became the leading industry in 2022 with $239M raised
- F&B remained in the top three supported by F&B startup Foodics’ $170M Series B round

Top industries by total funding ($) in Saudi Arabia in 2022

2 FinTech $239M (+167%)

3 $187M (+399%)

1 $180M (+260%)

3 $119M (-25%)

) / ( rank change ‘22 vs ’21

3 $60M (-54%) )+ / - ( % change ‘22 vs ‘21

2022 Saudi Arabia Venture Capital Report

2022 - Saudi Arabia Industry Comparison | By Deals
13

FinTech ranked first by deals closed over 2022 accounting for 19% of the total transactions observed in Saudi Arabia
- With initiatives being introduced by the Saudi Central Bank and Capital Market Authority to boost financial technology, FinTech startups recorded 28 investments in 2022
- Enterprise Software and EdTech have recorded significant growth with the latter registering double the number of deals it saw in 2021

Top industries by number of deals (#) in Saudi Arabia in 2022

0 FinTech 28 (+8%)

0 23 (+10%)

0 18 (-14%)

1 14 (+56%)

) / ( rank change ‘22 vs ’21

3 8 (+100%) )+ / - ( % change ‘22 vs ‘21

2022 Saudi Arabia Venture Capital Report

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2022 Saudi Arabia Venture Capital Report

2022 - Disclosed Funding Rounds in Saudi-based Startups | Top 5 Deals
15

50% of the total capital deployed in Saudi Arabia over 2022 was concentrated in the top five rounds
- The three Mega Deals accounted for 37% of the total funding in Saudi Arabia and 42% of Mega Deal transactions across MENA
- Foodics’ $170M Series C round ranked as the third-largest funding round in MENA in 2022

Amount Funding Month Industry Select Investors

Raised Stage

1 $170M Series C April Food & Beverage

2 $100M Series C September Transport & Logistics

3 $100M Series B August FinTech

4 $50M Undisclosed Februrary E-commerce

5 $50M Series B October E-commerce

2022 Saudi Arabia Venture Capital Report

2022 - Saudi Arabia VC Funding | By Stage
16

With Saudi Arabia closing 144 deals in 2022, 84% of the deals were closed at the Early-Stage (Pre-SEED to Pre-Series A)
- Early-Stage deals secured the lion’s share of deals in Saudi Arabia (84%), similar to its peer MENA markets UAE (79%) and Egypt (88%)
- Series B saw a 3PP increase driven by rounds recorded by the likes of Foodics and Tamara while the share of Series A deals dipped to 8%

Yearly VC deals in Saudi Arabia by stage (%)

56 72 92 149 144

9% 9% 6%
11% 11%
8%

Funding Stage
Group

Late Stage

Series B

Series A

89% 85% 88% 83% 84% Early Stage

2018 2019 2020 2021 2022

2022 Saudi Arabia Venture Capital Report

2022 - Saudi-Based Funded Startups | (1/2)
17

2022 Saudi Arabia Venture Capital Report

2022 - Saudi-Based Funded Startups | (2/2)
18

2022 Saudi Arabia Venture Capital Report

2022 - Active Investors | By # of Investments
19

With a record 104 investors, Saudi Arabia saw 30% more investors in 2022 than in 2021
- Similar to 2021, the majority of the investors (79%) hailed from Saudi Arabia with four of the five most active investors being Saudi-based
- 500 Global, Sanabil 500, and Impact 46 were among the Kingdom’s most active backers with 500 Global and Sanabil 500 participating in 13 deals each

Investors by number of investments in Saudi-based startups in 2022

2022 Saudi Arabia Venture Capital Report

Saudi Arabia Exit Evolution | 2018 - 2022
20

Saudi Arabia recorded double the number of exits in 2022 compared to the year before
- With 10 exits, Saudi Arabia continued to rank at number three in terms of M&A activity accounting for 14% of all MENA exits
- Jahez recorded two acquisitions while a number of cross market acquisitions were also recorded with UAE-based ventures acquiring KSA-based startups

5Yr Exit Evolution in Saudi Arabia Exits in 2022

10

6
5 5

2018 2019 2020 2021 2022

2022 Saudi Arabia Venture Capital Report

2022 - Highlights
21

Saudi Central Bank, Financial Sector Development Program Venture Capital & Private Equity Association, Jada
SAMA announced the issuance of the Open Banking Framework as one of the key outputs of the Open Banking Jada Fund of Funds, in partnership with the Saudi Venture Capital & Private Equity Association launched the 5th
Program, which is one of the initiatives of the Fintech Strategy, one of the pillars of the Financial Sector Development edition of “The Emerging Fund Manager” for venture capital, presented by Professor Robert Siegel of Stanford
Program (FSDP) under Saudi Vision 2030. The framework includes a comprehensive set of legislation, regulatory Graduate School of Business. The 6th edition of the program for private equity was also launched, presented by
guidelines and technical standards based on international best practices to enable banks and fintech startups to Professor Florin Vasvari of London Business School.
provide open banking services in the Kingdom

MCIT Ministry of Commerce, CMA

MCIT launched the third edition of the “Tech Champions Program”, an acceleration program for three sectors, The Ministry of Commerce and the Capital Market Authority (CMA) announced publishing the Draft
providing entrepreneurs with the necessary tools and support, as well as access to market and investors. MCIT Implementing Regulations of the New Companies Law for public consultation, pursuant to the issuance of the
also launched “The Multiverse Program”, which enables entrepreneurs and investors to access the most thriving New Companies Law. The Draft aims to facilitate the legal requirements to promote the business environment
tech ecosystems around the world including Silicon Valley. It also supports startups to scale to global markets and support investment, to contribute to attracting foreign and domestic investment and to provide sustainable
financing resources.

Saudi Federation for Cybersecurity, Programming and Drones Monsha’at

The Tuwaiq Academy of the Saudi Federation for Cybersecurity, Programming and Drones announced the The Small and Medium Enterprises General Authority (Monsha’at) announced that the number of continuous
launch of 20 bootcamps in professional technical fields and in partnership with major international technology training programs through the “Monshaat Academy” has reached 100 training programs that were carefully
companies, led by Amazon, Huawei, Alibaba and others. The bootcamps offer the trainees the opportunity to developed based on the needs of entrepreneurs in various sectors. The training programs aim to improve their
develop their technical skills and abilities access to investors and markets, manage existing projects and increase their competitiveness.

FinTech Saudi National Development Fund, SME Bank

Fintech Saudi released its fourth Annual Report 2021/2022, providing an overview of the fintech industry in The SME Bank, one of the development banks affiliated with the National Development Fund, started its official
Saudi Arabia over the last year. In addition to shedding light on the fintech strategy, innovation in financial markets, operations to increase financing provided to startups and SMEs through enhancing the contributions of financial
and the expected boom of digital banks in the Kingdom institutions in providing innovative financing solutions to startups and SMEs to sustain the development of this vital
sector

Misk Foundation National Technology Development Program (NTDP)

Misk Entrepreneurship in partnership with Plug and Play launched its 4th cohort of the Misk Accelerator, a seed- The National Technology Development Program launched “MVPlab” to support and enable innovative technology
stage accelerator for tech startups. It also announced season two of “Misk Startup School” of rich masterclasses founders to develop their projects, accelerate growth and launch technology business models, which aims to
by top global entrepreneurs from the US and MENA region create 1,000 tech startups in partnership with several partners in the entrepreneurial field

2022 Saudi Arabia Venture Capital Report

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2022 Saudi Arabia Venture Capital Report

About SVC
23

Saudi Venture Capital (SVC) is a Government VC ($1.5 billion AUM) established in 2018 for the primary goal of stimulating and sustaining financing for
startups and SMEs from pre-seed to pre-IPO through the investment in VC and PE funds and co-investment in startups.

Since inception, SVC has backed 31 funds and 5 angel investor groups that invested in 525 startups and SMEs.

1 Investment in Funds 2 Co-Investment in Startups

1.1 - VC Funds 2.1 - Angel Co-Investment in Startups

Co-investing in startups along with angel investors through the following approved
angel investor groups:

2.2 - Institutional Co-Investment in Startups

Co-investing in startups along with institutional investors (i.e., fund managers), when
there is an equity financing gap or to catalyze later stage investments for strategic or
1.2 - Accelerator and Startup Studio Funds financially-driven objectives.

1.3 - Venture Debt Funds Learn more about Saudi Venture Capital (SVC)
at svc.com.sa

1.4 - Private Equity Funds

2022 Saudi Arabia Venture Capital Report

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2022 Saudi Arabia Venture Capital Report

About MAGNiTT
25

2022 Saudi Arabia Venture Capital Report

MAGNiTT Methodology | Equity
26

MAGNiTT’s proprietary database and software provides access to data from multiple sources: user- submitted data verified by MAGNiTT, aggregated pub-
lic information, data engineered by MAGNiTT. All non-engineered data is verified and curated with an extensive process for inclusion in its analytic reports.

MAGNiTT encourages you to review the methodology and Verified Rounds: To ensure accuracy and confidence in our
definitions employed to better understand the numbers data, MAGNiTT undertakes a verification process for each
Data is the foundation of thriving presented in this report. If you have any questions about the funding round based on the following process:
definitions or methodological principles used, reach out to - Direct confirmation from the funding institution or investor
entrepreneurship ecosystems. MAGNiTT directly. Below is an outline of the approach and - Validated if there is a 3rd party source for the investment
criteria used in MAGNiTT’s research analysis: round from credible media sources or press releases.
- Various regulatory filings where applicable
Proprietary What is included: Equity financing into private companies. - A round is not verified if it has none of the above 3rd party
Startups and institutions list their proprietary Funding rounds included must be to VC-backed companies. reference
information on their funding amount, stage, date, and VC-backed companies are defined as companies that have
investors directly onto the MAGNiTT platform. All funding received funding at any point from: venture capital firms, Country HQ: In each of our venture reports, the location for
data is validated through a rigorous process. To ensure corporate venture arms, accelerator programmes, or Angel which the data is analysed is based on the startup’s HQ
comprehensiveness in the data, on a quarterly basis a investors. Where disclosed Angel investments are made at as chosen and verified by the startup and reflected on the
follow-up with verified funding institutions on MAGNiTT early stages these deals are included once verified. MAGNiTT platform. When analysing a particular geography,
occurs, requesting details on all their investments, our research does not include:
including stage, amount, date, and other co-investors. Excludes: It excludes debt or other non-equity funding, - Investments in startups from diaspora founders
This includes, and is not limited to, VCs, CVCs, angel lending capital, grants and ICOs. - Funding for startups who have their main HQ outside of our
groups, accelerators, university funds and family offices coverage with only a subsidiary or branch in that country
for MAGNiTT’s focus geographies. Exits: M&A and IPOs are treated as exits: excluded from
funding data, but included in exit data. Exit types that are Primary Industry: In each of our venture reports, the industry
Public excluded from this report are buyouts and secondary rounds. by which the data is analysed is based on the startup’s
We undertake a continued gathering of public Primary Industry (main operational focus) as chosen and
announcements and press releases on the venture Transaction date: Where provided the date of the verified by the startup and reflected on the MAGNiTT
funding landscape across MAGNiTT’s focus geographies. transaction is based on the closing date of the round. Where platform. When analysing a particular industry, our research
this is unavailable, it is recorded as the announced date per does not include:
Engineering Data public record. - Startups whose secondary focus is that industry
Where information is incomplete or undisclosed,
proprietary algorithms that tap into MAGNiTT’s databases Data lags: The data contained in this report comes directly Historical changes: We continue to improve historical data
are used to create estimates for undisclosed data with from MAGNiTT, reported as of January 2nd 2023. Data lags as we further verify our data sets and expand by geography
factors including but not limited to year of funding, location are most pronounced at the earliest stages of venture while reaching out to new funding Institutions. Continued
of startup, stage of investment and the company’s industry. activity. The data aggregated for these rounds during the improvements in our technology and data operations will
latest quarter, specifically with seed funding, increases lead to more accurate and comprehensive data sets on the
significantly after the end of that quarter. platform for our research analysis.

All underlying data from the report is available online via magnitt.com/funding-rounds. For more info please visit magnitt.com or contact [email protected]

If you feel your firm has been underrepresented, please send an email to [email protected] and we can work together to ensure your firm’s investment data is up-to-date

2022 Saudi Arabia Venture Capital Report

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