RIYADH: Saudi Arabia’s startup funding ecosystem is set to receive a boost after Aramco allocated $4 billion to its global venture capital arm.
This financing more than doubles the capital previously allotted to Aramco Ventures, raising its total investment allocation from $3 billion to $7 billion.
The move is set to elevate the energy giant’s overall venture capital commitment to $7.5 billion, which also encompasses the existing $500 million fund, Wa’ed Ventures, dedicated to nurturing the startup ecosystem within the Kingdom, according to a press note.
“By injecting an additional $4 billion in funding over the next four years, we intend to provide the financial backing required to take game-changing solutions to the next level. This will provide crucial impetus to businesses at various stages of development around the world while also contributing to Aramco’s own long-term objectives,” Ahmad Al-Khowaiter, Aramco’s executive vice president of technology and innovation, said.
The firm’s decision to bolster its venture capital program is part of the growing importance of fostering disruptive technologies, diversifying opportunities, and collaborating with innovative startups.
This initiative aligns with Aramco’s long-term strategy, which emphasizes new energy solutions, chemicals, and transitional materials, as well as diversified industrial ventures, and digital technologies.
Before this capital infusion, Aramco Ventures managed three distinct reserves. These included the Digital-Industrial Fund, valued at $500 million, focused on strategic technologies crucial to Aramco.
The Prosperity7 Fund, with $1 billion, is aimed at supporting disruptive technology ventures beyond the energy sector, while the Sustainability Fund, totaling $1.5 billion, invests in startups capable of aiding the company’s goal of achieving net-zero scope one and scope two greenhouse gas emissions across its wholly-owned and operated assets by 2050.
With this substantial investment, Aramco Ventures is positioned to play a pivotal role in driving innovation and growth in the international startup funding landscape.
The firm has established a global presence in the startup funding arena by leading multiple investment rounds across different regions.
In November of 2023, Aramco Ventures led a $10 million series A funding round for REDEX, a renewable energy certificate service provider based in Singapore.
Furthermore, in December, Prosperity7 Ventures took the lead in a $14 million series B funding round for Cispoly, a femtech company based in China.
In 2023, Wa’ed Ventures also provided funding to several startups. In September, the firm co-led a $52 million series B round for Mighty Buildings, a construction technology startup based in the US.
Additionally, the company co-led a $41 million funding round for Noon, an education technology startup based in Saudi Arabia.
