In a significant validation of Saudi Arabia’s growing deep tech ecosystem, King Abdullah University of Science and Technology (KAUST) has announced that its portfolio of spinout companies has collectively raised over $1 billion from local and international investors. The milestone underscores the maturation of the postgraduate research institution’s commercialization pipeline and its pivotal role in the Kingdom’s economic diversification.
Since its founding in 2009, KAUST has successfully spun out nearly 120 companies, many of which are now gaining traction with both regional and global venture capital firms looking to capitalize on opportunities within Saudi Arabia.
A Vision 2030 Engine
Aligned with the Kingdom’s Vision 2030, KAUST has emerged as a key driver for innovation in clean energy, sustainability, and resource efficiency. The university’s technology commercialization arm, the National Transformation Institute, is actively translating research into impactful ventures.
“The ideas that started at KAUST 15 years ago have now emerged into a pipeline of active IP that is inciting curiosity from the external world,” said Ian Campbell, Senior Vice President of the National Transformation Institute. “Investors are coming to the kingdom to see both the ambition and the scale of projects under way.”
Structured Funding and Deep Tech Focus
KAUST operates a structured technology transfer program supported by two dedicated funds. The KAUST Innovation Fund provides crucial seed investments of up to $250,000 and follow-on funding of up to $1 million. For scale-up financing, the Silicon Valley-based Capital K, a $200 million deep-tech fund, supports both KAUST technologies and external startups.
This ecosystem has nurtured groundbreaking companies, including Terraxy, which produces biochar from organic waste and is backed by Aramco’s Wa’ed Ventures, and Edama, which recycles vegetative waste and secured $5.6 million from the Saudi Investment Recycling Company. Another notable spinout is Lihytech, which has developed a low-energy method to extract lithium and raised $6 million from mining giant Ma’aden.
Engaging Global Investors
With its pipeline now proven, KAUST is actively widening its funding base by engaging more global pre-seed VC firms, corporate investors, and international accelerator programs. The university recently hosted a pitching event for first-time entrants to the Kingdom, including major names like TechStars, Newlab, and First Star Ventures.
“We’re becoming a place where they can test and deploy their accelerator models,” Campbell noted, highlighting KAUST’s growing reputation as a gateway to the Saudi market.
The university has also expanded its own international footprint, establishing an innovation hub in Shenzhen, China. This hub integrates Saudi founders into China’s advanced technology and manufacturing ecosystem, aiming to accelerate their speed to market.
About King Abdullah University of Science and Technology (KAUST)
King Abdullah University of Science and Technology (KAUST) is a private, international, graduate-level research university located in Saudi Arabia. Established in 2009, the university is dedicated to advancing science and technology through interdisciplinary research, education, and innovation. KAUST is a catalyst for scientific discovery and economic development in the Kingdom and serves as a hub for deep-tech ventures in sustainability, energy, and environmental sciences.
Source: MEATechWatch
