Wa’ed Ventures: Comprehensive Company Profile

Background

Overview

Wa’ed Ventures is a $500 million venture capital firm wholly owned by Saudi Aramco, established in 2013 to foster economic diversification and new business growth in Saudi Arabia. The firm focuses on investing in high-growth technology startups across multiple sectors, aiming to bolster the Kingdom's entrepreneurial ecosystem.

Mission and Vision

Wa’ed Ventures is dedicated to empowering entrepreneurs by providing financial support, strategic guidance, and access to Aramco's extensive resources. Its vision is to cultivate a robust, technology-driven ecosystem that drives innovation and economic growth within Saudi Arabia.

Primary Area of Focus

The firm primarily targets technology-based startups, emphasizing sectors such as artificial intelligence (AI), drones, fintech, Internet of Things (IoT), and quantum computing. Wa’ed Ventures invests in companies at various stages, from seed to Series C, with a maximum ticket size of $20 million per deal.

Industry Significance

As a subsidiary of Saudi Aramco, Wa’ed Ventures plays a pivotal role in advancing the Kingdom's Vision 2030 objectives by promoting economic diversification and reducing dependence on oil revenues. Its investments contribute significantly to the development of a sustainable and innovative business environment in Saudi Arabia.

Key Strategic Focus

Core Objectives

Economic Diversification: Investing in diverse sectors to reduce the Kingdom's reliance on oil and foster a multifaceted economy.

Technological Advancement: Supporting the growth of emerging technologies to position Saudi Arabia as a leader in innovation.

Entrepreneurial Empowerment: Providing resources and mentorship to nurture local startups and entrepreneurs.

Specific Areas of Specialization

Deep-Tech Investments: Focusing on sectors like AI, quantum computing, and advanced manufacturing technologies.

Global Tech Localization: Encouraging international startups to establish operations in Saudi Arabia, thereby transferring knowledge and technology.

Key Technologies Utilized

Artificial Intelligence (AI): Investing in AI-driven solutions across various industries.

Quantum Computing: Supporting advancements in quantum technologies to address complex computational challenges.

3D Printing and Advanced Manufacturing: Promoting innovative construction and manufacturing methods to enhance efficiency and sustainability.

Primary Markets Targeted

Saudi Arabia: Focusing on local startups to strengthen the national economy.

MENA Region: Expanding investments to neighboring countries to foster regional economic integration.

Global Markets: Attracting international startups to localize their operations in Saudi Arabia.

Financials and Funding

Funding History

Initial Fund Size: Established with a $200 million venture capital fund in 2013.

Increased Fund Size: Expanded to $500 million in 2022 to support a broader range of startups and emerging technologies.

Recent Funding Rounds

Mighty Buildings: In September 2023, co-led a $52 million funding round to accelerate global expansion.

Terra Drone Corporation: In January 2023, led a $14 million bridge funding round to support expansion into Saudi Arabia.

Lamaa: In December 2021, invested $5.5 million in the Riyadh-based fintech startup.

Notable Investors

Wa’ed Ventures collaborates with various international and regional investors, including BOLD Capital Partners, Khosla Ventures, and KB-Badgers, to co-invest in promising startups.

Utilization of Capital

The capital is primarily allocated to:

Startup Funding: Providing financial support to startups at various stages of development.

Global Expansion: Facilitating the entry of international startups into the Saudi market.

Technological Development: Investing in cutting-edge technologies to drive innovation.

Pipeline Development

Key Pipeline Candidates

Pasqal: A Paris-based quantum computing startup, with plans to deploy the first quantum computer in Saudi Arabia by 2025.

Rebellions: A Korean AI company specializing in AI semiconductor technology, with investments aimed at enhancing Aramco's digital infrastructure.

aiXplain: A California-based AI startup that has established its regional headquarters in Riyadh to support local businesses with AI solutions.

Terra Drone: A Japanese drone and air mobility technology company that established a Saudi Arabian subsidiary in 2023 to deploy and develop drone technologies locally.

Stages of Development

Wa’ed Ventures supports startups across various stages, from seed funding to late-stage investments, providing tailored support to meet the specific needs of each company.

Target Conditions

The firm focuses on startups addressing significant market needs, with scalable business models and the potential for substantial impact in their respective industries.

Anticipated Milestones

Quantum Computing Deployment: Deployment of the first quantum computer in Saudi Arabia by 2025.

AI Integration: Enhanced integration of AI solutions within Aramco's operations through partnerships with AI-focused startups.

Technological Platform and Innovation

Proprietary Technologies

Lumus Material: A proprietary material used by Mighty Buildings, which is five times stronger than concrete, enabling the construction of climate-resilient homes.

Significant Scientific Methods

3D Printing in Construction: Utilizing 3D printing technology to accelerate construction processes and reduce waste.

Quantum Computing Applications: Applying quantum computing to solve complex problems beyond the capabilities of classical computers.

Leadership Team

Key Executives

Fahad Alidi: Managing Director at Wa’ed Ventures, overseeing the firm's strategic direction and investment activities.

Salman T. Jaffrey: Chief Investment Officer, responsible for leading investment strategies and portfolio management.

Wassim Basrawi: Managing Director, focusing on fostering innovation and supporting the growth of the startup ecosystem.

Competitor Profile

Market Insights and Dynamics

The venture capital landscape in Saudi Arabia has experienced significant growth, with investments increasing from $59 million to nearly $1 billion between 2018 and 2022. This expansion reflects a burgeoning interest in technology-driven startups and a supportive environment for innovation.

Competitor Analysis

Raed Ventures: A Riyadh-based venture capital firm investing in early-stage technology companies across the MENA region.

STV (Saudi Technology Ventures): A venture capital firm focusing on technology investments in the MENA region, with a particular emphasis on Saudi Arabia.

Strategic Collaborations and Partnerships

Wa’ed Ventures collaborates with various international and regional investors, including BOLD Capital Partners, Khosla Ventures, and KB-Badgers, to co-invest in promising startups.

Operational Insights

Wa’ed Ventures differentiates itself through its affiliation with Saudi Aramco, providing portfolio companies with access to extensive industry expertise, resources, and potential partnerships. This strategic advantage enables startups to scale rapidly and integrate innovative solutions within large-scale operations.

Strategic Opportunities and Future Directions

The firm aims to continue expanding its portfolio by investing in emerging technologies and supporting the localization of global tech companies in Saudi Arabia. By leveraging its strategic position and resources, Wa’ed Ventures is well-positioned to drive innovation and contribute to the Kingdom's economic diversification efforts.