Wa’ed Ventures: A Decade of Fueling Entrepreneurial Growth
Wa’ed Ventures, Aramco’s $500-million venture capital fund, has spent a decade fostering Saudi Arabia’s entrepreneurial ecosystem. Since its establishment, Wa’ed Ventures has invested significantly in technology-focused startups, supporting the Kingdom’s innovation and economic diversification.
The Genesis of Wa’ed and its Evolution
Aramco’s commitment to Saudi Arabia’s entrepreneurial landscape began in the early 2010s, a time of limited startup activity in the Kingdom. Addressing this, Aramco founded the Saudi Aramco Entrepreneurship Center, known as Wa’ed, in 2011. The center aimed to guide aspiring entrepreneurs by providing business planning, collateral-free loans, and support services such as coaching and mentoring.
In 2013, recognizing the growing importance of technology, Wa’ed expanded beyond providing support, and started focusing on private equity financing, initially launching a $200 million venture capital fund. Over the next five years, venture capital activity in the Kingdom experienced significant growth including a boost from $59 million to nearly $1 billion in the period from 2018 to 2022. To address the need for funding at the ‘late-stage,’ Wa’ed increased its ‘ticket size’ to accommodate the requirements of more established startups.
Addressing Funding Gaps and Expanding Focus
During this period, Wa’ed identified a trend of funding predominantly flowing to sectors like logistics, e-commerce and education. There was a lack of capital for deep tech startups. In response, Wa’ed increased its fund size to $500 million in 2022, to support a greater number of startups focused on emerging technologies.
This mandate was further expanded to include investments in global frontier-tech companies, requiring that key operations be localized in Saudi Arabia. This strategic move enabled Wa’ed to support the localization of deep-tech firms offering innovative technologies such as quantum computing, drones, and 5G communication.
In 2023, Wa’ed rebranded to “Wa’ed Ventures” to reflect its shift from an entrepreneurship support organization to a venture capital fund, and expanded its investment activity to include funding a wider range of startups from other countries and supporting those seeking to localize their products and services in Saudi Arabia. This action aimed to fill local technology gaps and increase local economic diversification.
The Role of Wa’ed Ventures in Supporting Startups
Wa’ed Ventures operates as a life-cycle investor, providing tailored funding and support at every stage of a startup’s journey. This approach spans financial backing, strategic guidance, and access to industry expertise. Wa’ed Ventures also offers post-investment services, including mentorship, advisory support, and assistance with fundraising. Wa’ed Ventures also helps startups identify and recruit top talent.
When evaluating potential investments, Wa’ed Ventures places significant emphasis on the expertise, vision, and leadership of the founding team.
Strategic Investments and Supporting Aramco’s Digitalization
In support of Aramco’s digitalization efforts, Wa’ed Ventures has made strategic investments in the technology sector. These investments are aimed at adopting cutting-edge AI solutions. For example, in October 2024, Wa’ed Ventures earmarked $100 million for early-stage AI investments.
One notable investment is in Pasqal, a Paris-based startup specializing in quantum computing. The partnership involves the deployment of the first quantum computer in Saudi Arabia by 2025. In addition, Wa’ed Ventures invested in Rebellions, a Korean AI company focused on driving innovation in the AI semiconductor industry. Furthermore, the venture fund has supported AI startup aiXplain, and drone and air mobility company Terra Drone.
Part of the National Champions Program
Wa’ed Ventures is part of Aramco’s National Champions Program. The National Champions Program is a four-stage venture life-cycle initiative that begins with Lab7, an innovation and product development center. The second stage is Wa’ed Ventures. They work closely with Lab7 helping them until they become established and are ready to exit the Lab7’s program. Wa’ed Ventures also collaborates with Taleed and Namaat to scale successful startups.
Impact Beyond the Kingdom and Future Vision
As of 2024, Wa’ed Ventures has deployed approximately $270 million across over 75 portfolio companies, including those that have expanded into new markets. One such firm is Iyris, an AgriTech business that has developed saltwater-tolerant crops, aimed at establishing an economically viable, saltwater-based agricultural system. In addition, Saudi-based retail enablement company Zid has been supported by Wa’ed Ventures’ late-stage investment.
Wa’ed Ventures has played a vital role in bolstering Saudi Arabia’s entrepreneurial ecosystem by supporting local tech startups and bringing in international firms. Looking ahead, Wa’ed Ventures will be accelerating its investments in emerging technologies, contributing to the economic progress of Aramco, Saudi Arabia, and the global community.
