Pinnacle Launches Saudi VC Strategy to Back Growth-Stage Companies

Abdulwahab AlBetairi, Managing Partner and CEO of Pinnacle Capital

Saudi Arabia-based investment firm Pinnacle Capital has launched a venture capital strategy targeting growth-stage technology companies and secondary investment opportunities in the Kingdom.

The strategy is designed to invest through both primary funding rounds and secondary transactions, giving investors exposure to established Saudi technology companies while creating additional liquidity for existing shareholders.

Pinnacle Capital describes its Venture Capital division as focused on scaling technology startups and building the next generation of Saudi industry leaders. The firm has also highlighted its use of growth-stage capital, with Partner Moayed Almoayed leading its venture capital activities.

The strategy comes as Saudi Arabia's venture capital market continues to expand. In 2025, Saudi startups attracted $1.72 billion across 257 VC transactions, both record highs for the Kingdom. Saudi Arabia retained its position as MENA's largest VC market for the third consecutive year.

Saudi Arabia VC Market Indicator	Latest Data
VC funding, 2025	$1.72B
VC deals, 2025	257
VC funding growth, 2025	+188% YoY
Deal activity growth, 2025	+41% YoY
H1 2025 VC funding	$860M
H1 2025 share of MENA VC funding	56%

Sources: MAGNiTT and Saudi Venture Capital Company (SVC), as reported by the Saudi Press Agency.

Why Is Saudi Arabia Becoming More Attractive for Growth-Stage VC?

The expansion of Saudi Arabia's VC market is increasingly shifting attention from startup formation toward scaling mature companies.

The Kingdom recorded $860 million in VC deployment across 114 deals in H1 2025, already exceeding the full-year funding total recorded in 2024. Capital deployment increased 116% year over year, while deal volume rose 31%. Saudi Arabia accounted for 56% of total MENA VC funding during the period.

However, the market remains weighted toward earlier-stage companies. In H1 2025, 89% of Saudi Arabia's VC transactions were early-stage deals, compared with 87% across MENA. Series A represented 6% of deals, while Series B accounted for only 4%.

That creates an opportunity for investors able to provide capital as companies move beyond their initial funding rounds.

Pinnacle's strategy therefore sits at a different point in the venture lifecycle, combining growth capital with secondary transactions rather than concentrating solely on early-stage startup funding.

How Can Secondary Investments Address Saudi Arabia's Liquidity Gap?

Primary venture investments provide new capital to companies, while secondary transactions allow existing shareholders to sell part or all of their stakes to new investors.

For Saudi growth companies, secondary capital can provide an additional route to liquidity without requiring a full company exit or public listing.

Pinnacle's approach is particularly relevant as more Saudi startups reach later funding stages. Its existing portfolio activity illustrates this focus: in August 2025, Pinnacle participated in Gathern's $72 million Series B, alongside Sanabil Investments, STV, Nuwa Capital, and Endeavor Catalyst.

The Riyadh-based alternative hospitality company was valued at more than $266 million following the round and began preparing for a potential IPO, demonstrating the type of later-stage company Pinnacle is targeting.

Pinnacle's strategy can therefore support several stages of the private-market lifecycle:

• Primary growth investment — providing new capital to companies scaling operations.
• Secondary transactions — creating liquidity for existing shareholders.
• Growth-stage support — backing established businesses with demonstrated market traction.
• Pre-exit positioning — providing capital to companies approaching strategic exits or public-market opportunities.

The broader secondaries market is also becoming an increasingly important component of private capital. This is particularly relevant in Saudi Arabia as companies funded during the ecosystem's earlier growth cycles mature and their investors approach potential liquidity events.

Which Sectors Will Pinnacle's Saudi Growth Fund Target?

Pinnacle is focusing on technology businesses operating in sectors where it sees structural demand and long-term growth potential.

Why Is Fintech a Key Investment Theme?

Fintech is one of the fund's core areas, supported by regulatory development and Saudi Arabia's rapid transition toward digital financial services.

The scale of this shift is already visible in payments. According to the Saudi Central Bank (SAMA), electronic payments represented 85% of total retail payments in 2025, up from 79% in 2024. Electronic transactions reached 14.6 billion in 2025, compared with 12.6 billion the previous year.

This creates opportunities for technology companies operating across payments, financial infrastructure, banking technology, and other digital financial services.

How Could Riyadh's Growth Create Opportunities for Technology Companies?

Pinnacle Capital is also targeting businesses benefiting from Riyadh's continued development as a global city, particularly across housing, mobility, real estate, and urban services.

This thesis reflects the broader transformation underway under Saudi Vision 2030, where urban development and infrastructure investment are creating new demand for technology-enabled services.

Pinnacle's investment in Gathern provides a relevant example. The company, founded by Latifah Altamimi, raised $72 million in 2025 to accelerate its Saudi and regional expansion while preparing for a potential IPO.

Why Does E-Commerce Remain an Opportunity in Saudi Arabia?

E-commerce is another target sector for Pinnacle, reflecting the continued expansion of digital consumption in the Kingdom.

E-commerce was Saudi Arabia's largest VC-funded sector in 2024, attracting $247 million, or 33% of total VC capital deployed that year.

The sector also remained prominent in H1 2025. E-commerce and retail attracted $306 million, representing 36% of Saudi Arabia's total VC funding, driven in part by major transactions such as Ninja's $250 million raise.

For growth-stage investors, the opportunity extends beyond consumer marketplaces to logistics, payments, commerce infrastructure, and technology supporting increasingly digital purchasing behavior.

What Opportunity Does Health and Lifestyle Technology Present?

Pinnacle also sees opportunities in health and lifestyle, particularly businesses responding to increasing consumer awareness around preventative health and wellness.

The investment thesis gives the fund exposure to technology businesses positioned around changing consumer behavior rather than limiting its strategy to traditional healthcare providers.

What Does Pinnacle's Fund Mean for Saudi Arabia's Venture Ecosystem?

Pinnacle's strategy reflects a broader evolution in Saudi Arabia's startup market: the ecosystem is moving from building a pipeline of startups toward financing companies as they scale and eventually seek liquidity.

The scale of the market's expansion is significant. Saudi Arabia recorded $1.72 billion in VC investment in 2025, up 188% from 2024, while the number of transactions increased 41% to 257 deals.

At the same time, the concentration of capital in later-stage companies creates a need for investors capable of supporting businesses beyond initial venture rounds.

Pinnacle's combination of primary growth investments and secondary transactions is positioned to address that need. Rather than treating funding and liquidity as separate parts of the startup lifecycle, the strategy connects the two—providing capital to companies while creating potential exit routes for existing shareholders.

For Saudi Arabia, that could become increasingly important as more companies progress from venture-backed startups into established growth businesses and, eventually, potential IPO or strategic-exit candidates.

Note: Pinnacle Capital was renamed Alqimma Alawla Company for Investment following a July 2026 notification to the Saudi Capital Market Authority (CMA). The firm's website continues to use the Pinnacle Capital branding for its investment-management activities.

 

 

FAQs

1. What is Pinnacle's Saudi VC fund?
Pinnacle Capital's venture capital strategy focuses on Saudi growth-stage technology companies and secondary investment opportunities, using both primary funding rounds and secondary transactions.

2. Which sectors does Pinnacle's fund target?
The strategy targets technology businesses across fintech, e-commerce, housing, mobility, real estate, urban services, health, and lifestyle.

3. Why are secondary investments important in Saudi Arabia?
Secondary transactions can provide liquidity to existing shareholders without requiring a full company exit. This becomes increasingly relevant as Saudi startups mature and more venture-backed companies approach later funding and potential exit stages.

4. How large is Saudi Arabia's venture capital market?
Saudi Arabia recorded $1.72 billion in VC investment across 257 deals in 2025, representing a 188% year-over-year increase in funding and a 41% increase in deal activity.

5. What companies has Pinnacle Capital invested in?
Pinnacle has invested in Saudi technology companies including Gathern, which raised a $72 million Series B in August 2025 with participation from Pinnacle Capital, Sanabil Investments, STV, Nuwa Capital, and Endeavor Catalyst.