MIND THE GAP UPDATE: Unlocking Technology Unicorns by Fueling KSA Native Growth-Stage Funds

EXECUTIVE SUMMARY

Saudi Arabia’s technology ecosystem has accelerated rapidly, with ~$5bn of venture capital deployed in the last five years and nine unicorns created to date. This momentum proves the Kingdom’s ability to nurture global-scale innovation. Yet, relative to GDP benchmarks, both unicorn creation and VC deployment remain well below potential, highlighting the need for stronger capital flows at the scaling stage.

The missing link is growth-stage funding. While early-stage capital has gained traction, the scale-up phase is underfunded despite a healthy pipeline of high-potential ventures. To close this gap, Saudi-native growth-stage VCs must expand in number and scale. Their local expertise, networks, and ability to identify winners are critical to unlocking the next wave of Saudi unicorns. Without this, the ecosystem risks losing momentum; with it, the Kingdom can accelerate toward its ambition of becoming a global technology hub.

KSA TECH ECOSYSTEM HAS BEEN IGNITED 

In the last 5 years, ~$5bn VC were deployed in KSA while 9 unicorns have emerged.

14 UNICORNS EMERGED IN MENA, HALF OF THEM IN THE LAST 2 YEARS

65% of Unicorns are Saudi Arabia based companies, 4 of them are listed on regional stock exchanges.

HOWEVER, KSA REMAINS BELOW ITS FULL POTENTIAL

Unicorns creation and VC deployment as a share of GDP well below benchmarks.

LACK OF GROWTH-STAGE FUNDING IS THE KEY ISSUE

Capital remains skewed to early stage despite a healthy growth pipeline.

SAUDI VC GROWTH-STAGE INVESTING IS UNDERDEVELOPED

Local focus and expertise are crucial to identify and support most promising tech ventures.

HOWEVER, PIPELINE OF GROWTH STAGE VENTURE IS HEALTHY AND ~$16BN ARE NEEDED TO EXPLOIT ITS FULL POTENTIAL

YET, THERE IS A GAP IN SAUDI NATIVE GROWTH STAGE VCs 

Need to bridge the gap by increasing growth-stage VCs and their deployable capital.