This is how Saudi startups can attract Venture Capital firms

Technology startups incubated by the Badir programme in Saudi Arabia successfully raised $29.3 million from 64 deals in 2018. Of the investor profiles, individual investors were the most active, pumping $10.8 million into the startups, followed closely by private sector companies investing $9.3 million, and venture capital firms that invested $8.1 million.

Considering venture capital firms can provide significant support to startups in their growth years, many Saudi startups are looking for their investments.

The VC stamp of approval can be highly beneficial to startups going to international clients or markets. There are certain ways in which they can win their investments:

Demonstrate growth by meeting basic criteria of a strong founding team, service or product that is a clear answer to a problem and one that is scalable regionally or internationally, and a property path to monetisation.

It is advised that startups look into bootstrap options in their early years, as venture capital funding is often used for scaling products. Approaching them too early could be a waste of time and resources. Understand three VC motives and interests, and approach them strategically in due time.

Read more about how startups can get the ear of the VC community here.