Silicon Valley investor, Plug and Play Tech Center, aims to raise $100 million for Saudi tech startups, potentially with backing from the kingdom's sovereign wealth fund unit, Jada. Discussions are underway between Plug and Play and Jada, a $1 billion fund of funds established to foster the local venture capital industry.
Plug and Play intends to initiate the fund in January, wherein they will contribute up to 10% of the total amount, while the remaining funds will be sourced from Saudi funds and family offices. Jada CEO, Amidi, explains that Plug and Play's decision to launch the fund stems from the notable enhancement in the caliber of Saudi startups in recent years.
Why it matters
In an effort to reduce its reliance on oil and generate employment opportunities in the private sector, Saudi Arabia is actively seeking to support entrepreneurs and foster growth in the venture capital industry. As a step towards this goal, Jada, the country's sovereign wealth fund, has also provided its endorsement to a Middle East fund worth $50 million, which is managed by Hambro Perks, during the year 2021.