Flat6Labs, a Middle East-based startup accelerator, has announced the first close of its “Startup Seed Fund” in Saudi Arabia. The SAR 75 million ($20 million) fund will invest in early-stage startups operating in the technology and innovation sectors within the Kingdom of Saudi Arabia.
The program is backed by the Saudi Venture Capital Company (SVC), a subsidiary of the Small and Medium Enterprises Bank, and the “Jada” Fund of Funds, which is owned by the Public Investment Fund.
The fund is expected to develop the capabilities of over 180 entrepreneurs and create more than 6,000 jobs in the private sector in Saudi Arabia, as well as enable Saudi companies to expand in the region through Flat6Labs regional offices.
Additionally, the Startup Seed Fund aims to help startups receive follow-on funding of up to SAR 2.4 million and provide support and training programs for select companies. It also aims to reduce the risks faced by venture capital and the administrative and legal costs incurred by early-stage startups.
The program is part of a larger effort by Saudi Arabia to increase the share of the digital economy in GDP and enhance the contribution of the non-oil private sector. Flat6Labs is currently accepting applications for the second cycle of its seed program in Riyadh.