RIYADH: Regional startup funding is set to see a significant boost as Saudi Venture Capital announced a $30 million investment in Olive Rock Partners Fund I.  

The investment aligns with SVC’s strategy to develop and sustain financing for startups and small and medium-sized enterprises in strategic sectors.

Focused on mid-market buyouts that are demographically driven, geographically advantaged and technologically enabled, Olive Rock Partners Fund I is a regional private equity fund aiming to boost the ecosystem.

The agreement was signed by Nabeel Koshak, CEO and board member of SVC, and Muhannad Qubbaj, founding partner of Olive Rock Partners, in the presence of key officials from both organizations.  

“The investment in Olive Rock Partners Fund I is part of SVC’s Investment in Funds Program, which is a continuation of the company’s series of investments and an implementation of its strategy related to developing and sustaining financing for startups and SMEs, especially in strategic sectors,” Koshak said.

For his part, Qubbaj expressed gratitude for SVC’s trust and highlighted the partnership’s potential to fuel growth in the SME space and enhance the direct investment landscape in Saudi Arabia.

Established in 2018 as a subsidiary of the SME Bank, part of the National Development Fund, SVC is committed to stimulating and sustaining financing for startups and new enterprises from pre-seed to pre-initial public offering stages through investments in funds and direct investments.

In October 2023, SVC invested $10 million in the Ruya Private Capital I LP fund, managed by Ruya Partners.  

Established in 2020, Ruya Partners is a dedicated private credit firm offering financial solutions to the private sector in emerging markets.  The fund aims to deliver capital in the form of private debt to SMEs, focusing on mid-market entities and including later-stage venture-backed companies within Saudi Arabia and the broader region.

As part of its commitment to minimize financing gaps for startups, SVC also invested SR112.5 million ($29.9 million) in Saudi Arabia’s IMPACT46 Fund III in October 2023.

The move was designed to empower late-stage companies in the region by investing in growth and pre-IPO phases.