The Evolution of Saudi Arabia's Startup Ecosystem 2010-2022

Saudi Arabia

We spoke to key stakeholders in the Kingdom, from <a href="https://lucidityinsights.com/search/venture%20capital">venture capitalists</a>, start-up founders, accelerators, incubators and angel investors, with one particular question: &ldquo;What future trends can we expect out of the Saudi start-up ecosystem?&rdquo; Here is what we heard:

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<h2>1. More Saudi Startups are reaching the later growth stages, looking for Series B funding.&nbsp;</h2>

<img src="https://cdn.lucidityinsights.com/uploads/saudi-venture/articles/future-startup/1.jpg" />

Many VCs are looking to fund growth stage funds to support their existing portfolio of startups, and meet this growing demand in the Kingdom. At present, some fast-paced Saudi startups in later growth stages are going to international VCs for support, garnering support from the likes of Softbank and Sequoia.&nbsp;

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<h2>2. Direct-to-Consumer (D2C) start-up categories like <a href="https://lucidityinsights.com/topics/fintech">Fintech</a> and eCommerce will remain dominant, but Saudi will see an emergence of <a href="https://lucidityinsights.com/search/results?keyword=b2b">B2B start-ups. </a><img src="https://cdn.lucidityinsights.com/uploads/saudi-venture/articles/future-startup/2.jpg" /></h2>

These B2B solutions will emerge in sub sectors such as <a href="https://lucidityinsights.com/search/results?keyword=supply%20chain">supply-chain technologies</a>, fleet optimization, <a href="https://lucidityinsights.com/search/results?keyword=agriculture">agtech</a>, and even further into <a href="https://lucidityinsights.com/search/results?keyword=deep%20tech">deeptech</a>, driven by AI-powered software solutions.

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<h2>3. Increasing Number of &ldquo;Experienced&rdquo; Founders starting companies.&nbsp;</h2>

<img src="https://cdn.lucidityinsights.com/uploads/saudi-venture/articles/future-startup/3.jpg" />

The current enthusiasm and activity in the Saudi start-up market has shifted mind-sets so drastically, that many experienced professionals are leaving 10-20 year careers to found their first start-ups. This also means that the solutions they are offering are highly specialized, bringing more sophisticated solutions to the market.

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<h2>4. More Globally-Minded Startups.&nbsp;</h2>

<img src="https://cdn.lucidityinsights.com/uploads/saudi-venture/articles/future-startup/4.jpg" />

The first start-ups that came out of the Kingdom were very Saudi-focused. Today, founders are thinking bigger and bolder, from day one. The market expects to see many more start-ups that have a MENA region focus from the beginning, with bold global ambitions in their future.&nbsp;

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<h2>5. Entrance of International Start-Ups.&nbsp;</h2>

<img src="https://cdn.lucidityinsights.com/uploads/saudi-venture/articles/future-startup/5.jpg" />

As the Kingdom continues to open its borders, with accelerator programs such as <a href="https://lucidityinsights.com/search/results?keyword=500%20global">500 Global</a> and <a href="https://lucidityinsights.com/search/results?keyword=KAUST">KAUST</a> sending invitations to international founders, and local VCs like Wa&rsquo;ed Ventures investing in international start-ups with the aim of supporting their market-entry into the Kingdom, it is predicted that Saudi Arabia will see a gradual increase of foreign start-ups establish themselves in the market. Many international VCs that have started to keep an eye on the Saudi market are also assessing it as a potential market for their international portfolio companies.&nbsp;

Read about <a href="https://lucidityinsights.com/spotlights/oq-technology-space-technology-startup-sets-up-in-saudi-arabia">OQ Technology</a>, a European SpaceTech startup that is building its satellite operations centre in Saudi Arabia.

 
Next: <a href="https://lucidityinsights.com/articles/what-are-the-future-trends-in-the-saudi-start-up-investment-landscape">What Are the Future Trends in the Saudi Start-up Investment Landscape?</a>

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<big>Learn more about the successful and the emerging Saudi&rsquo;s startup and its ecosystem, in the most comprehensive report on the topic to date, <a href="http://lucidityinsights.com/reports/the-evolution-of-saudi-arabias-startup-ecosystem-2010-2022">The Evolution of Saudi Arabia&#39;s Start-Up Ecosystem 2010-2022</a>.</big>

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What Are the Latest Trends in Saudi’s Startup Ecosystem?

1. More Saudi Startups are reaching the later growth stages, looking for Series B funding.

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