Silicon Valley-based tech investors are keen to support Saudi Arabia startups and businesses.
Plug and Play Tech Center, a startup accelerator and venture capital firm which was an early backer of firms, including Dropbox Inc and PayPal Holdings Inc., is seeking to raise $100 million to invest in Saudi tech startups, potentially with backing from a unit of Public Investment Fund.
According to a Bloomberg report, the firm is in talks with Jada, a $1 billion fund of funds by PIF, to help accelerate the domestic venture capital industry.
Set to launch by January, Plug and Play would contribute as much as 10% of the total and the rest raised from Saudi funds and family offices, said Saeed Amidi, founder and CEO of Plug and Play Tech Center.
Plug and Play manages a portfolio of five funds totaling $500 million and has plans to establish five more.
Earlier this week, Jada invested in Bahrain’s Investcorp, a $500 million pre-IPO growth fund. The fund, launched last year, aims to invest in a diversified portfolio of high-growth startups seeking to go public over the next few years. Last August, it led a $100 million pre-IPO funding round in TruKKer, the region’s largest digital freight network.
Jada, established in 2019, targets investments in startups, venture capital funds, and private equity funds. The fund is critical to Saudi Arabia’s Vision 2030 of developing the country’s private equity and venture capital ecosystem.
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