#Saudi Wealth Fund Bets on Startups With Hambro Perks Investment - Bloomberg

Saudi Wealth Fund Bets on Startups With Hambro Perks Investment - Bloomberg

Saudi Arabia’s sovereign wealth fund is backing a Middle East venture-capital fund run by Hambro Perks Ltd., joining the trend for state investors in the region to put money into early-stage companies.

The Public Investment Fund of Saudi Arabia is an anchor investor in the $50 million Oryx Fund, which will target fintech, health and education technology startups across the Middle East and North Africa, according to Dominic Perks, co-founder of London-based venture firm Hambro Perks. He declined to say how much the Saudi fund, also known as PIF, has invested.

Oryx is the first Western venture-capital fund to get backing from PIF, which made the investment through its Jada unit, according to a statement from Hambro Perks. Other investors include Saudi Venture Capital Co. and Riyadh Valley Co.

Middle East sovereign funds have been stepping up their financing of startups as a way to create local jobs and help diversify their countries’ energy-dependent economies. Yet it remains rare for these funds to invest in other firms’ vehicles focused on the Middle East and Africa. Venture-capital funds concentrating on this region have raised just $11.7 billion since 2016, according to data from Preqin.