Groundbreaking Initiative: Qatar's $1 Billion Venture Capital Fund

Groundbreaking Initiative: Qatar's $1 Billion Venture Capital Fund

By Staff Writer, 28 February 2024

Qatar's sovereign wealth fund, the Qatar Investment Authority (QIA), is embarking on a groundbreaking initiative with the launch of its inaugural Venture Capital (VC) Fund of Funds.

The endeavor, set to inject a minimum of $1 billion, aims to bolster the burgeoning start-up ecosystem in Qatar and the wider Gulf region, fostering a culture of innovation.

The allocated capital will be strategically deployed into both international and regional venture capital funds, with a pronounced emphasis on sectors driving technological advancement such as fintech, edtech, and healthcare, as outlined in an official statement.

CEO of QIA, Mansoor Ebrahim Al-Mahmoud, underscored the significance of this initiative, stating, "QIA is launching this programme to help ensure that innovative businesses can readily access capital and support from VC funds, enabling them to scale operations and expand market presence in Qatar, across the GCC, and ultimately onto the international stage."

Al-Mahmoud further emphasized the absence of a dedicated capital pool in the Gulf state catering to businesses beyond seed funding, highlighting the critical need for Series A to Series C investment rounds.

The Fund of Funds program will primarily engage in indirect investments through established VC funds while retaining the flexibility to make targeted co-investments alongside participating funds.

Al-Mahmoud clarified, "The Fund of Funds programme will only invest in VC funds and not invest in private equity, debt, or any other funds."

Beyond its local impact, the initiative aspires to attract prominent international VC funds and entrepreneurs to Qatar and the broader GCC region, positioning it as a hub for innovation and investment.

Source: Cleofe Maceda / Zawya

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