Qatar unveiled its startup funding program on the current Internet Summit by means of its growth financial institution. This system goals to draw seed and growth-stage tech firms looking for to ascertain or increase operations inside the nation. TechCrunch has realized that this system, referred to as the “Startup Qatar Funding Program,” is backed by a Qatar Growth Financial institution (QDB)-managed $100 million fund.
In a press release, QDB revealed that this system will provide funding of as much as $500,000 for early-stage startups seeking to set up a presence in Qatar, and as much as $5 million for growth-stage firms looking for to increase their operations within the Center Jap nation. Moreover, the event financial institution highlighted that other than monetary assist, it should present portfolio startups entry to markets and experience. As said on its web site, this system targets startups in over fifteen sectors, together with fintech, cleantech, agritech, B2B SaaS, healthtech, marketplaces, proptech, AI & ML, and robotics.
“QDB is intensifying its efforts to place Qatar as a significant hub for startups throughout numerous industries, significantly the tech sector as a result of its strategic significance,” stated QDB CEO Mr. Abdulrahman bin Hesham Al Sowaidi. “By means of these efforts, we goal to draw and retain abilities in numerous fields to assist our entrepreneurship ecosystem, foster innovation and speed up know-how adoption throughout all domains in a bid to contribute to a sustainable and business-friendly financial system,” Al Sowaidi stated.
Qatar’s startup program aligns with fashions employed by enterprise corporations like U.S.-based Alpha Wave International, which manages a $300 million early-stage fund (Alpha Wave Incubation) anchored by ADQ, one in all Abu Dhabi’s sovereign wealth funds. Throughout the Gulf Cooperation Council (GCC), related enterprise funds stipulate that startups from exterior the area set up a “second” headquarters or workplace of their areas (which function bases for increasing operations throughout MENA and GCC) in return for funding and extra enterprise benefits.
Like most enterprise ecosystems, a number of of those necessities are mandated by restricted companions, primarily sovereign wealth funds, within the Gulf upon these enterprise capital corporations. Simply final week, Qatar’s sovereign wealth fund unveiled a $1 billion enterprise capital fund of funds devoted to worldwide and regional enterprise capital funds.
For Qatar, launching its fund of funds and startup program signifies a vital step towards growing its tech ecosystem to rival its neighbors, Saudi Arabia and the UAE. The urgency is obvious, as information from rising markets information tracker Magnitt reveals that Qatar represented solely 6% of offers throughout the MENA area final 12 months, with enterprise capital funding in its startups amounting to a mere 43 million Qatari riyal (~$11 million) in 2023. In distinction, Saudi Arabia accounts for 52% of the area’s offers, whereas the UAE dominates by way of deal quantity.
With that stated, extra competitors contributes to the area’s benefit. Final 12 months, the MENA area skilled a 23% decline in enterprise capital exercise in comparison with the worldwide common of 42%. In opposition to this backdrop, Qatar’s heightened engagement in enterprise capital, spearheaded by its sovereign wealth fund and growth financial institution, provides a promising outlook for the broader area, the place 55% of traders concerned in backing startups final 12 months had been native.
