SIDF Investment Company (SIC), the investment arm of the Saudi Industrial Development Fund (SIDF), has announced an investment in Khwarizmi Ventures Fund II. The move signals a deeper push to integrate venture capital with Saudi Arabia’s national industrial development agenda, focusing on early-stage technology companies.
Quick Facts
- Investment from SIC into Khwarizmi Ventures Fund II.
- Fund to back over 20 early-stage startups.
- Focus on industrial tech, AI, and logistics.
Bridging Industrial Policy with Venture Capital
This investment highlights a strategic shift in Saudi Arabia’s industrial policy, which is increasingly looking towards emerging technologies and startups to build a competitive edge. Rather than concentrating solely on large-scale projects, government-linked institutions like SIC are now channeling capital into the foundational tech layer—software, logistics, automation, and fintech—that will support future industrial growth.
For SIC, the partnership is part of a broader strategy to diversify its investment activities beyond private equity and direct investments. It provides the firm with early access to technologies that could be pivotal for the Kingdom’s industrial competitiveness.
Fund II’s Investment Focus
Khwarizmi Ventures’ second fund is set to invest in more than 20 early-stage startups across Saudi Arabia and the GCC. The fund will write checks between $1 million and $5 million for companies in their Seed and Series A rounds.
The fund’s thesis is centered on sectors directly linked to industrial advancement and technical infrastructure. Key areas of interest include supply chain platforms, logistics infrastructure, fintech solutions tailored for industrial SMEs, and applications in automation and artificial intelligence.
About SIDF Investment Company (SIC)
SIC is a subsidiary of the Saudi Industrial Development Fund (SIDF). It was established to diversify investment channels serving the industrial sector and expand across multiple asset classes, including private equity, private credit, direct investments, and now venture capital.
About Khwarizmi Ventures
Founded in 2018, Khwarizmi Ventures is a Saudi-based venture capital firm that invests in early-stage startups across the GCC and the wider MENA region. The firm closed its first institutional fund at $70 million in 2021 and has built a portfolio of 35 companies, achieving three exits to date.
Source: Waya
