VC fund 500 Global hunts for Saudi Arabia’s next tech unicorn

In the Kingdom, 500 Global has backed young firms such as shipping solutions provider Nitros, sports management company TeamUp and female professional network Playbook. (Shutterstock)
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Updated 16 February 2022
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VC fund 500 Global hunts for Saudi Arabia’s next tech unicorn

  • Fund CEO Christine Tsai says they spread their bets over a large range of firms to find the startup that will make it big

RIYADH: Venture capital fund 500 Global has brought its prolific funding pace to Saudi Arabia and is looking for the next tech unicorn — a startup valued at over $1 billion.

The San Francisco-based firm, co-founded by CEO Christine Tsai, has cast its net wide, funding more than 2,600 startups in at least 75 countries since it was founded in 2010.

It has $2.3 billion in assets under management, and its portfolio includes stakes in 41 firms valued at more than $1 billion and 125 firms worth more than $100 million.

Its unicorns include US credit broker Credit Karma, Australian online design platform Canva and Singaporean food delivery payments and ride-hailing app Grab.

In the Kingdom, it has backed young firms such as shipping solutions provider Nitros, sports management company TeamUp and female professional network Playbook. Tsai founded the firm 12 years ago with partner Dave McClure as 500 Startups, before changing its name to 500 Global last year. Both had worked as marketing executives at tech giants such as Google, YouTube and Microsoft. McClure eventually left the business in 2017.

In an interview with Arab News, Tsai said their background was an advantage when they began to raise capital for the business because they shared “a big network of high-net-worth individuals, many of whom were ex-Google and ex-YouTube people.”

“Our first global fund in 2010 was about $30 million. Not huge, but a good first one to start out with.”

500 Global spreads its bets over a large range of firms in a bid to find the startup that will make it big.

The fund’s investments are typically between $100,000 to $200,000 — a relative drop in the ocean compared to what many VC firms invest.

But Tsai points out that for a small operation, often with only two or three employees, “even a $100,000 check can be quite a lot”, to develop a product or hire extra staff.

“The traditional way of venture funding, concentrating capital into a small number of companies, is a risky asset class”, Tsai noted. “And certainly at the early stage, it’s even riskier.

“So our thesis was to make it a numbers game, investing much less in a larger number of companies, then using our experience and connections to help these companies to grow, and then doubling down on winners.

“From the start, it was very much a long-game venture. It can be 10 years from when we fund a startup to the potential exit or initial public offering. Now we’re at the 12-year mark, we can see how that strategy has played out.

“In some of the cases where we have taken early positions, the multiples on that have been very significant.”

The firm has received payouts from its early equity stakes in acquisitions such as the $403 million sale of 3D printing company MakerBot in 2013 by rival Stratasys, Google’s $350 million purchase of marketing software firm Wildfire in 2012 and the $200 million buyout of video streamer Viki by Japanese e-commerce firm Rakuten in 2013.

Tsai said she and her team focus not only on the quality of the founders and their products, but on the potential broad reach of the service being offered. The firm had international ambitions from the outset, initially targeting startups in Mexico, it quickly moved into the Far East, South Asia and MENA.

It has bases in more than 15 countries, with offices in New York, Lisbon, Shanghai and Mumbai. It has an office in Riyadh since 2020, led by partner Amal Dokhan, who is also a member of King Abdulaziz University’s female advisory board.

To spread know-how around its network of companies, its more successful firms act as mentors to younger firms in 500 Global’s 12-week “seed accelerator programs.”

One example is its December Sanabil 500 MENA Seed Accelerator, held with Riyadh’s Public Investment Fund-owned Sanabil Investments, where startup founders develop their management, financial and marketing skills during intensive programs.

“We have established Riyadh as our MENA hub,” Tsai said, “and it’s a big hub for tech now. We have more than 30 investments in the Kingdom.” We’ve really seen the Kingdom’s startup ecosystem flourish over the past six years. It’s now risen to be second to the UAE in the MENA region.”

Awsim Asmi, CEO of shipping solutions provider Nitros, which in December 2021 attracted a joint investment of SR1.1 million ($300,000) from 500 Global and KSA-based OMQ Investments, told Arab News: “Their network and experience are almost unmatched.

“We’ve seen unicorns such as Shippo thrive after going through a 500 Global acceleration program. We’re in the same space, we’ve gone through the same experience and we’re on the right track.”


Mapping Saudi soils to grow better crops

Updated 19 December 2025
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Mapping Saudi soils to grow better crops

  • Palm trees, root crops, and coastal plants reveal the land’s story

RIYADH: Saudi Arabia’s land tells stories written beneath the feet. From fertile plains and rugged highlands to vast deserts, the Kingdom’s diverse landscapes shape what can grow, where it grows, and how agriculture can thrive.

Alongside geography and climate, soil conditions play a decisive role in agricultural success. Understanding soil types across the Kingdom helps determine which crops can flourish and what interventions may be needed to sustain them.

In an interview with Arab News, Turki Almutairi, a senior environmental specialist at the National Afforestation Center under the National Center for Vegetation Cover Development and Combating Desertification, outlined the main soil types found across Saudi Arabia.

High amount of salt makes the soil unfit for the production of most crops, even if the soil is fertile. (Supplied)

“The dominant soil in the Kingdom are sandy desert soils, alongside calcareous soils in the central region. Rocky and stony soils are present along mountainous and hilly landscapes,” he said.

“Alluvial soils are common in wadies (valleys), while saline and sodic soils are located in depressions (Sabkhas) and along coastlines. Pockets of clayed soils can be also found around few sites along the Kingdom.”

The Kingdom’s vast territory gives rise to unique soil characteristics in each region, enabling different crops to grow depending on local conditions.

“Soil is the growing medium for plants. The role of soil includes structural stabilization, providing nutrients and a communication medium for plants,” Basil Nasir, soil lead at engineering consultancy William Sale Partnership, told Arab News.

Basil Nasir, soil lead at the engineering consultant company, William Sale Partnership (WSP). (Supplied)

According to Nasir, assessing soil use is essential before determining whether it is fertile or infertile, as different soils support different plant types.

“The soil used for trees differs from the soil used for ornamental plants and from the soil used for aquatic plants. It varies according to the specific needs of each plant, and based on this, we determine what the soil requires and assess its fertility,” he said.

Nasir explained that soil characteristics are shaped by both physical and chemical components. In addition to water and air, mineral particles such as sand, silt and clay are key indicators of soil health. Organic matter, derived from plant and animal remains, forms the fourth major component.

The balance between these elements determines soil behavior. One important physical trait is water-holding capacity, which influences what types of plants a soil can support.

 

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“If the soil is like dunes, adding water will cause it to run off, but if the soil is clay, its ability to retain water will be very high. If you add water and return the next day, you will find that the water is still there,” said Nasir.

Chemical properties, such as whether soil is alkaline or acidic, are equally important. Understanding both physical and chemical traits allows for proper assessment and treatment when needed.

“What determines whether a plant is suitable for a particular environment is primarily the plant's nature. For example, some plants have fibrous roots and therefore do not require well-draining soil,” Nasir added.

“A palm tree, for example, does not care whether it was planted in one soil or the other because its roots are fibrous. Therefore, palm trees are strong plants and are suitable to grow in both dry and wetlands, while preferring sandy areas.”

Soil Salinity can be treated through Soil leaching which means washing the soil with certain amount of water to reduce the salt in it. (Supplied)

Crops such as potatoes, onions, carrots and beetroots — where the edible part grows underground — typically thrive in sandy soils. As a result, plantations of these crops are commonly found in northern regions such as Hail and in Wadi Ad-Dawasir.

In the eastern region, including Al-Ahsa, wetlands are more common due to climatic conditions. Growing plants in such environments often requires human intervention.

“Plants that are coastal or could be found in lagoons or lakes must have some sort of soil around them, like lotus flowers and mangrove trees.”

“An important parameter to keep in mind is that there is no air in its soil, and they are adapted to this condition. However, the lack of air, along with the presence of organic matter, will create a situation where anaerobic bacteria react with the soil, potentially causing diseases we can easily avoid,” said Nasir.

He emphasized that removing organic matter from such soils is essential to ensure plant survival in aquatic environments.

Mountainous and rocky regions in Saudi Arabia are generally volcanic, resulting in low water-holding capacity and challenging growing conditions. However, volcanic ash contributes to high fertility, allowing certain crops to flourish.

As a result, western regions support tree crops such as coffee, mangoes, some banana varieties and pomegranates.

There are various types of soils such as clay, sandy, silty and loamy. Each type provides excellent conditions for specific plants. (Supplied)

As development accelerates across the Kingdom, soil improvement efforts are expanding under the National Greening Program.

“Soil is considered fundamental for the National Greening Program’s objectives. Understanding the soil variability along the Kingdom is a precondition for fostering sustainable soil management,” Almutairi told Arab News.

Adding, “In this line, the NGP is working towards the establishment of the Saudi Soil Information System (TURBA-KSA), which consists of mapping soils and its functional properties in the Kingdom using state-of-the-art technology.”

He also noted the creation of the “Land Rehabilitation Watch” to report, verify and monitor land rehabilitation nationwide.

“This milestone allows the Kingdom to understand how soil and land health are progressing against national and international targets of land degradation neutrality. Documenting good soil and land management practices is also important, so that those successful practices could be scaled up along the Kingdom, which is a priority task for NGP,” he said.

Raising public awareness is another key pillar of the program.

“Assessing different emerging technologies and soil amendments is a daily activity of NGP, as it then provides technical support to partners on the selection and application of these technologies.”

DID YOU KNOW?

• Saudi Arabia cultivates around 1 million hectares, mainly in Riyadh, Qassim, Hail, and Jouf.

• Farming follows the seasons: winter brings onions, garlic, and carrots, while summer yields watermelon, tomatoes, and cucumbers.

• The Kingdom is a top date producer, with over 31 million palm trees generating nearly 1.54 million tons, especially in Riyadh and Qassim.

Almutairi stressed that soil is often overlooked because it lies unseen beneath the surface, despite its critical role.

Yet soil produces 95 percent of food, stores water, holds more carbon than vegetation and the atmosphere, suppresses contaminants, regulates water, carbon and nutrient cycles, and hosts microorganisms linked to the human microbiome.

He emphasized the need to engage the general public, particularly urban communities disconnected from nature. Education helps people understand where food comes from and how contact with soil — such as walking barefoot — can support well-being. Healthy soils also contribute to cleaner water and air, he added.

Almutairi also called for stronger advocacy among decision-makers, noting that investment in healthy soils supports climate action, food security and sustainable development.

He concluded that key strategies include officially observing UN World Soil Day on Dec. 5, integrating soil education into curricula, launching annual social media campaigns, using art to raise awareness, and organizing public events that connect soils to everyday life.