Silicon Valley-based tech investor, Plug and Play Tech Center, has recently unveiled its plan to invest in Saudi tech startups.
Plug and Play Tech Center, the renowned Silicon Valley-based tech investor, has recently unveiled its plan to establish a $100 million fund dedicated to investing in Saudi tech startups. This strategic move has the potential to receive support from a unit of the Saudi sovereign wealth fund, PIF's Jada Fund of Funds.
According to Saeed Amidi, the founder and CEO of Plug and Play, the firm is currently in discussions with Jada, a $1 billion fund of funds established by the Saudi wealth fund, with the aim of fueling the growth of the domestic venture capital industry. Slated to be launched by January 2024, Plug and Play intends to contribute approximately 10% of the total fund, while the remaining capital will be raised from Saudi funds and family offices.
“We are not going to lower our standards,” Amidi tells StartupScene. “We invest in the US, Germany - our quality control is not going to change just because it’s Saudi Arabia, and if I cannot find startups as high quality I will not invest.”
As part of its efforts to diversify its oil-dependent economy and generate employment opportunities within the private sector, the Kingdom of Saudi Arabia is actively promoting entrepreneurship and the venture capital industry. Jada has also previously supported a Middle East fund managed by Hambro Perks Ltd. with an investment of $50 million in 2021.
In addition to this latest initiative, Plug and Play already manages a portfolio of five funds amounting to $500 million. Amidi disclosed that the company has plans to establish an additional five funds, further solidifying its commitment to nurturing and empowering startups across the globe.
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