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EgyptKhwarizmi Ventures Targets $120M Fund for Saudi Startup Surge
2 min
Khwarizmi Ventures plans to launch its second fund, raising $100-$120 million.
The fund will focus on seed and Series A startups, especially in Saudi Arabia.
Their first fund valued at $70 million was largely invested in promising startups.
They seek startups with a solid product, revenue signs, and growth plans.
The expectation is for significant growth in local startups and potential unicorns.
Saudi venture capital firm Khwarizmi Ventures is gearing up to launch its second fund, aiming to raise between $100 and $120 million to support early-stage startups in the Middle East and North Africa, with a particular focus on Saudi Arabia.
The new fund will target companies at the seed and Series A levels, giving priority to businesses either headquartered in Saudi Arabia or those actively planning to expand into the Saudi market. Abdulaziz Al-Turki, managing partner at Khwarizmi Ventures, shared in an interview with Al Arabiya Business, that the current climate for early-stage investment in the region is ripe for growth. He noted, “Ten years ago, there were no startups here valued above a billion dollars. Now, we've already got eight, and the expectation is that we'll see that figure rise to about 60 unicorns by 2035.”
Khwarizmi Ventures’ first fund, launched earlier, was valued at $70 million and saw roughly 80% of its capital deployed into promising startups. The remainder has been set aside for follow-on investments, bolstering support for existing portfolio companies.
The investment firm looks specifically for startups that have progressed beyond that initial 'idea-on-paper' stage. They've got to have a solid product already in place, early signs of incoming revenue, and clearer-than-crystal plans for sustainable growth and scalability.
Now, speaking of scalable growth and startups, many seasoned Arageek readers may recall cases of initial scepticism over certain ventures in the past—ventures now worth a tidy sum indeed. Khwarizmi Ventures seems keenly aware it's about spotting potential just before everyone else catches on.
With this next fund scheduled to roll out fairly soon, local entrepreneurs and regional investors alike will surely be keeping their eyes peeled for exciting new tech ideas or innovative companies that Khwarizmi will bet on—businesses potentially destined to be the next big thing in Saudi and beyond.
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