The Saudi startup scene is heating up—and not just because of the desert sun.
From Riyadh’s buzzing co-working spaces to Jeddah’s academic-led innovation hubs and Dhahran’s deep tech roots, there’s a seismic shift in how the Kingdom approaches innovation, investment, and entrepreneurship. With mega-funds like Sanabil, sprightly VCs like STV and Raed Ventures, and ecosystem builders like Monsha’at, Saudi Arabia is not just playing catch-up—it’s charting its own path.
But here’s the kicker: is the current system truly optimized for local talent and ideas, or are we still mirroring Silicon Valley too closely?
Let’s map the territory, introduce the power players, and explore how Saudi startup founders can navigate and shape this evolving ecosystem—with a few hard questions thrown in.
The Venture Capital Landscape – Meet the Money Movers
Let’s start with the big guns: venture capital firms that are actively writing checks in Saudi Arabia. Each fund has a slightly different risk appetite, investment thesis, and stage focus, so founders need to align their startup’s maturity and mission accordingly.
STV (Saudi Technology Ventures)
STV is not just Saudi Arabia’s largest venture capital fund—it’s a strategic powerhouse designed to transform startups into regional champions. With a fund size north of $500 million, it behaves more like a growth equity investor with VC speed.
What sets STV apart?
Its thesis is rooted in building category leaders. If you’re in fintech, logistics, SaaS, or mobility—and can prove a scalable model—STV wants to hear from you. The team is highly analytical, regionally focused, and obsessed with data. STV also brings in strategic operating support, helping startups with hiring, expansion, and even regulatory navigation.
Who should pitch STV?
Founders with validated traction (>$1M ARR or equivalent), unit economics that improve with scale, and a plan to expand beyond Saudi. Think of STV as your bridge to IPO-level ambition—if you’re ready to play at that level.
- Deals: Careem (exit), Tabby (unicorn), Trukker (freight/logistics scale)
- Sweet spot: Series A/B, regional scale-ups
- Differentiator: In-house platform team that helps with growth, hiring, and expansion
Raed Ventures– The Founder’s First Call
Raed Ventures, a subsidiary of Almajdouie Holding, is the friendliest early believer in the Kingdom’s startup ecosystem. They’re known for backing founders early—often when there’s just an MVP and vision—and staying for the long haul.
What makes Raed unique?
They don’t just fund—you get an investor who picks up your call at midnight. Raed provides strategic guidance, connects founders to early clients (especially in B2B sectors), and even helps with go-to-market execution. Their sweet spot lies in edtech, B2B SaaS, and fintech, but they’re opportunistic and founder-driven.
Who should approach Raed?
If you’re building in Saudi and want hands-on support, this is the VC that will help you go from “deck to deal.” You don’t need perfect traction—you need clarity of vision, a strong founding team, and signs of product-market pull.
- Deals: Noon Academy (edtech), Sary (B2B e-commerce), Hala (fintech)
- Sweet spot: Pre-seed to early Series A
- Differentiator: High founder intimacy + strong KSA market understanding
🔗 Source: Raed Ventures
Vision Ventures– Speed, Access, and Early Bets
Vision Ventures stands out for its volume and speed. With over 80 investments across the region, it’s built to support startups in their infancy—when many traditional VCs still hesitate. If STV is for scalers and Raed is for believers, Vision Ventures is for bold first movers.
What makes them tick?
Vision Ventures loves momentum. If you’re a first-time founder with MVP traction and early customer signals, you’ll find a sympathetic audience here. They’re especially strong in bridging the gap between angel capital and institutional VC rounds.
Who should pitch?
Tech founders with early adoption, repeat usage, or strong engagement metrics—even if revenue is minimal. Their team moves quickly and provides a gateway to other capital rounds via their deep angel and VC syndicate network.
- Stage: Pre-seed, Seed, occasional Series A
- Ticket size: ~$100K–$500K
- Edge: Quick decisions, regional network, tolerance for experimentation
🔗 Source: Vision Ventures
Sanabil Investments (PIF-backed) – The Sovereign Scaler
Sanabil plays in a different league—it’s backed by the Public Investment Fund (PIF) and manages billions globally. While much of its capital is allocated to global VC and PE funds (like Andreessen Horowitz or General Atlantic), its Saudi-focused activity is rising, particularly in strategic or high-impact sectors.
What’s their angle?
Sanabil is not for everyone. They invest directly in scale-stage startups or co-invest alongside top-tier funds. Their sweet spot is where national interest, economic transformation, and commercial upside intersect—think healthtech, fintech infrastructure, deep tech, or cloud-native platforms.
Who should pitch?
If you’ve already raised capital from notable VCs, have scale-ready revenue (>$2M+), and your product aligns with Saudi’s economic diversification goals—Sanabil might be your next stop.
- Deals: Lucid Motors, Noon, and global co-investments
- Stage: Late-stage, strategic seed-to-growth (selectively)
- Edge: Institutional credibility + access to PIF’s influence and network
🔗 Source: Sanabil Investments
Angel Networks and Government-Backed Funds – The Early Believers
Not every startup gets VC money right out of the gate. That’s where angels and government-backed funds step in. These players are more risk-tolerant and often more accessible to first-time entrepreneurs.
Oqal Network – Where Angels Take Flight
Founded in 2011, Oqal is Saudi Arabia’s leading angel investor network and one of the most underappreciated catalysts of early-stage funding in the country.
What makes Oqal unique?
- Real People, Real Cheques: It’s not a fund—it’s a syndicate of Saudi businessmen and women who write angel cheques from their personal balance sheets
- Pitch Events: Monthly, curated pitching sessions where you can meet dozens of active investors
- Sector-Agnostic: From food delivery to healthtech, they’ve backed over 100 startups since inception
- Ideal for: Startups needing $50K–$500K to build or validate MVPs before institutional VCs step in
How to approach?
You’ll need a solid pitch, early traction, and a story that resonates with high-net-worth Saudis—often those who built traditional businesses and now want a piece of the new economy.
- Bonus: Oqal helps founders understand Saudi investor psychology—relationship-based, vision-focused, and value-driven.
🔗 Source: Oqal
Monsha’at- The Wind Beneath Your Startup’s Wings
Monsha’at (General Authority for Small and Medium Enterprises) isn’t just another government department—it’s an entrepreneur-first ecosystem builder. Their mission? Turn small businesses into national growth engines.
How does Monsha’at help?
- Funding Access: Via indirect loan programs (like Kafalah) and match-making with VCs/banks
- Market Entry Support: Helps startups enter procurement channels or connect with mega-projects like NEOM or Diriyah
- Startup Hub: Their Startup Hub initiative brings co-working, mentorship, and sector-specific tracks under one umbrella
- SaaS Marketplace & Tools: Subsidies on cloud tools, legal templates, marketing credits, etc.
Who should tap in?
If you’re a founder in KSA—especially Saudi-born—Monsha’at is your unfair advantage. You get policy-driven support, access to accelerator programs, and visibility into high-potential sectors backed by Vision 2030.
🔗 Source: Monsha’at
Social Development Bank
This state-backed entity offers interest-free loans to small and micro businesses, with a growing focus on tech-enabled startups in underserved regions.
- Loan amounts: Up to SAR 300,000 (~$80K)
- Stage: MVP to revenue-generating
🔗 Source: SDB
Accelerators and Incubators – Bootcamps for Saudi Startups
Not every great founder starts with an investor on speed dial. Sometimes, what you really need is mentorship, product refinement, and a crash course in GTM strategy. That’s where accelerators come in.
Flat6Labs Riyadh–The Global Operator with Local Teeth
Flat6Labs is MENA’s most battle-tested accelerator, and its Riyadh program brings years of Cairo, Beirut, and Tunis experience to Saudi founders.
What does Flat6Labs offer?
- Funding : $100K–$150K investment
- 4-month accelerator program with masterclasses, mentorship, and exposure
- Strong Demo Day to help you raise a Seed round right out the gate
- Sector Focus: Broad—but strong on fintech, B2B SaaS, and content platforms
Why it matters:
Flat6Labs is founder-friendly, fast, and globally connected. They bring professionalism and playbooks from across the Arab world and pair it with local insights.
🔗 Source: Flat6Labs
Taqadam by KAUST
Taqadam isn’t your typical pitch-deck accelerator—it’s Saudi’s most credible launchpad for science-backed and deep-tech startups. Operated by KAUST and backed by SABB, it sits at the intersection of research, innovation, and market application.
What you get:
- Funding: $100K in non-dilutive funding
- 6-month immersive program hosted at KAUST
- Heavy R&D resources—access to labs, PhDs, and prototyping facilities
- Notable alumni: UnitX (AI/Cloud), Aumet (Healthtech), and many deep SaaS plays
Who should apply?
If your startup involves machine learning, energy tech, biotech, or complex engineering—Taqadam gives you what others can’t: time, tools, and top-tier technical mentorship.
🔗 Source: Taqadam
Misk Accelerator
The Misk Foundation, founded by Crown Prince Mohammed bin Salman, launched this accelerator in partnership with Plug & Play—one of Silicon Valley’s most respected platforms. That means you get local access + global networks.
What’s in the mix?
- 12-week accelerator, hybrid model (in Riyadh + online)
- Global mentor pool via Plug & Play’s network
- No equity taken but ultra-high visibility via Misk Foundation channels
- Target stage: MVP to early traction
Why it’s gold:
This accelerator isn’t just about curriculum—it’s about credibility. Misk is heavily aligned with Vision 2030, and being in the program means you’re vetted and visible to some of the Kingdom’s most strategic stakeholders.
🔗 Source: Misk Accelerator
Top Tech Hubs by City – Where the Innovation Lives
The Saudi startup ecosystem isn’t centralized—each major city brings a different flavor and strength.
Riyadh – Capital of Capital
Riyadh is the financial nerve center and the heart of most VC activity. With events like LEAP, co-working giants like The Space, and most government institutions headquartered here, it’s where deals are made.
- Strength: Fintech, SaaS, logistics
- Hotspots: STV, Sanabil, Monsha’at, The Garage
Jeddah – The Creative Lab
Jeddah boasts a more relaxed entrepreneurial culture. It’s home to Wadi Makkah, KAU’s innovation hub, and a rising wave of creative tech founders, especially in e-commerce, media, and edtech.
- Strength: Edtech, fashion tech, design
- Hotspots: Wadi Makkah, Vibes Offices, B8ta
Dhahran – The Deep Tech Frontier
Home to Saudi Aramco, Dhahran’s startup scene is heavily skewed towards deep tech, industrial automation, and energy innovation. Programs like Wa’ed Ventures support startups solving hard problems.
- Strength: Industrial tech, cleantech, R&D
- Hotspots: Dhahran Techno Valley, Wa’ed, KFUPM Business Park
Investor Expectations in Saudi vs. UAE vs. Pakistan
Let’s be real—investor mindsets vary significantly across the region.
| Criteria | Saudi Arabia | UAE | Pakistan |
| Risk Appetite | Medium | High | Low to medium |
| Ticket Sizes | $100K–$5M | $200K–$10M | $25K–$1M |
| Favorite Metrics | Local traction, compliance | Scalability, growth | Bootstrapping, MVPs |
| Relations-hip Style | Formal + government involved | Globalized + corporate | Personal + informal |
Founder Cheat Sheet – Who to Talk To, When
- If you’re at the ideation stage
- → Reach out to Oqal, Monsha’at, Misk Accelerator, or Vision Ventures
- → Get early validation, first cheques, government program access, and exposure
- If you’re building or validating your MVP
- → Talk to Raed Ventures, Taqadam, or Flat6Labs
- → Secure seed-stage capital, structured mentorship, and pilot customer opportunities
- If you’re gaining traction and ready to scale
- → Pitch to STV, Sanabil Investments, or global co-investors via local funds
- → Access growth capital, platform support, and regional expansion guidance
- If you’re working on deep tech or R&D-heavy solutions
- → Leverage Taqadam, KAUST, SDF, or Sanabil
- → Get non-dilutive funding, access to labs, and connections to enterprise partners
- If you’re in a consumer-facing business (e.g., e-commerce, fintech apps)
- → Go to Flat6Labs, Raed Ventures, or STV
- → Receive go-to-market strategy help, user acquisition insights, and brand credibility
Getting In, Staying Credible !
So, how do you break into this game if you’re a first-time founder in Saudi?
1. Start Local, Build Trust
Founders who participate in local programs (e.g., Monsha’at, Taqadam) often have better access to capital. It’s a signaling mechanism—investors feel more confident backing startups vetted by these channels.
2. Warm Intros Are Currency
Cold emailing is still a gamble. Instead, attend events like LEAP, ArabNet, or local demo days. Ask for intros via mentors, advisors, or even Twitter DMs—Saudi VCs are surprisingly accessible.
3. Show Grit, Not Just Glam
Saudi investors have started looking past the pitch decks and into your resilience, domain knowledge, and ability to execute under uncertainty. Don’t worry if your metrics are modest—what matters is momentum.
The Bigger Question – What Should a “Saudi Startup” Actually Look Like?
Here’s the real question we should be asking:
Should Saudi startups mimic Silicon Valley, or should they be solving uniquely Saudi problems with uniquely Saudi models?
Why build yet another delivery app when the real gaps lie in food sustainability, female workforce participation, digitized logistics, and climate tech?
What if the best “unicorns” won’t look like flashy consumer apps—but rather, quiet B2B players transforming agriculture, energy, or healthcare?
Maybe it’s time we stopped obsessing over unicorns and started building “Wadi Gazelles”—nimble, adaptive, impact-driven startups that are tailor-fit for the Kingdom’s Vision 2030.
Final Thoughts
The Saudi startup ecosystem is dynamic, decentralized, and full of promise—but it’s still finding its identity.
As a founder, the landscape offers you unprecedented resources—but also demands that you play smart, stay grounded, and think long-term. The game is open, the players are ready, and the next big name could be yours.
So—what kind of startup will you build?