As per the latest report from the start-up research platform MAGNiTT stated, that Saudi-based start-ups lured a record $152Mn in total funding. The report stated that against the backdrop of an unprecedented COVID-19 Pandemic, Saudi start-ups ecosystem was still one of the swiftest progressive amongst the top three pioneered hubs within the MENA territory.
Within the initial half of 2020, $111 Million was nurtured up with support of noteworthy funding rounds inclusive of the $36.5m and $18m nurtured by food and grocery delivery start-ups Jahez and Nana, respectively.
More universal investors were dynamic in Saudi Arabia in 2020 than in 2019, with 17 percent of investors based external of the Kingdom, an 11 percent upsurge from 2019. However, the figure of venture capital institutions endured the same in 2020 at 47.
In a converse of a deterioration in deals across MENA, Saudi deal drift was 35 percent up, related to 2019. The year 2020 saw 88 investments take place in the kingdom, with 67 percent of deals closed in the initial half of 2020. Among the most dynamic investors were OQAL Angel Investors, SVC, as well as 500 Start-ups, Impact46, KAUST and Saudi Aramco.
E-commerce and FinTech observing an unprecedented spike in request in 2020 due to COVID-imposed limitations. These two segments characterized 20 percent and 10 percent of all transactions in Saudi Arabia, respectively.
Moreover, E-commerce start-ups high 45 percent of total funding in 2020, tracked by transport (10 percent) and Education (9 percent). COVID-19 also obligatory accelerator programmes online, which explained into a decline of fast-tracked deals by 16 percent in Saudi Arabia to only 7 percent of total deals in 2020.