Key Takeaways
- • Saudi Venture Capital (SVC) announced an investment in Khwarizmi Venture Capital Fund 2, a seed-to-Series A focused fund managed by Khwarizmi Capital, licensed by Saudi Arabia's Capital Market Authority.
- • Khwarizmi Venture Capital Fund 2 targets high-growth technology and tech-enabled startups with sector flexibility, identifying fintech, e-commerce, and artificial intelligence applications as areas of strong potential.
- • The investment reinforces SVC's mandate as a market maker in Saudi Arabia's venture capital ecosystem, expanding funding pathways for early-stage founders and supporting domestic fund managers.
- • SVC, established in 2018 as a subsidiary of the SME Bank (part of the National Development Fund), operates across the full investment spectrum from pre-Seed to pre-IPO stages through both fund and direct startup investments.
Summary
Saudi Venture Capital has committed capital to Khwarizmi Venture Capital Fund 2, marking a strategic expansion of institutional funding support within Saudi Arabia's early-stage venture ecosystem. The fund, managed by Khwarizmi Capital and regulated by the Capital Market Authority of Saudi Arabia, specializes in seed-to-Series A investments targeting technology-driven startups positioned for high growth. While maintaining sector flexibility, the fund identifies fintech, e-commerce, and artificial intelligence applications across multiple verticals as areas demonstrating exceptional opportunity.
According to Nora Alsarhan, Deputy CEO and Chief Investment Officer at SVC, the investment reflects the organization's core mandate to function as a market maker within Saudi Arabia's venture capital infrastructure. "Our investment in Khwarizmi Venture Capital Fund 2 is driven by our mandate as a market maker in Saudi Arabia's venture capital ecosystem. Through these investments, we back Saudi fund managers who invest in early-stage startups and broaden funding options for founders building the next generation of high-growth Saudi companies," Alsarhan stated.
Abdulaziz AlTurki, Managing Partner of Khwarizmi Ventures, characterized the partnership as aligned around entrepreneur empowerment and startup acceleration. The collaboration aims to strengthen Saudi Arabia's regional positioning as a venture capital hub while creating economic value through scalable technology companies. SVC's investment complements Khwarizmi Capital's thesis by providing institutional capital depth to support exceptional founders during critical early-stage scaling phases.
SVC operates as a subsidiary of the SME Bank, itself part of the National Development Fund, and has functioned since 2018 as a dedicated institutional investor across multiple funding stages. The organization deploys capital through both fund-of-funds and direct startup investments, spanning pre-Seed through pre-IPO opportunities. This investment in Khwarizmi Venture Capital Fund 2 represents SVC's continued commitment to stimulating and sustaining financing channels for Saudi startups and small-to-medium enterprises positioned to drive innovation and regional economic development.
According to Nora Alsarhan, Deputy CEO and Chief Investment Officer at SVC, the investment reflects the organization's core mandate to function as a market maker within Saudi Arabia's venture capital infrastructure. "Our investment in Khwarizmi Venture Capital Fund 2 is driven by our mandate as a market maker in Saudi Arabia's venture capital ecosystem. Through these investments, we back Saudi fund managers who invest in early-stage startups and broaden funding options for founders building the next generation of high-growth Saudi companies," Alsarhan stated.
Abdulaziz AlTurki, Managing Partner of Khwarizmi Ventures, characterized the partnership as aligned around entrepreneur empowerment and startup acceleration. The collaboration aims to strengthen Saudi Arabia's regional positioning as a venture capital hub while creating economic value through scalable technology companies. SVC's investment complements Khwarizmi Capital's thesis by providing institutional capital depth to support exceptional founders during critical early-stage scaling phases.
SVC operates as a subsidiary of the SME Bank, itself part of the National Development Fund, and has functioned since 2018 as a dedicated institutional investor across multiple funding stages. The organization deploys capital through both fund-of-funds and direct startup investments, spanning pre-Seed through pre-IPO opportunities. This investment in Khwarizmi Venture Capital Fund 2 represents SVC's continued commitment to stimulating and sustaining financing channels for Saudi startups and small-to-medium enterprises positioned to drive innovation and regional economic development.
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