According to an article by Crunchbase, Saudi Arabian investors are increasingly showing a growing appetite for U.S.-based startups, as recent funding rounds demonstrate. Nile, a U.S. networking startup, secured a substantial $175 million (SR656.25 million) Series C funding round, co-led by March Capital and Saudi Arabia’s Sanabil Investments, a wholly owned company by the Public Investment Fund. In another notable move, Houston-based Axiom Space secured a $350 million (SR1.31 billion) funding round, led by Saudi Arabia’s Aljazira Capital, marking their first investment in a U.S.-based startup. This trend indicates that Saudi Arabia-based investors are actively exploring opportunities in U.S. startups, expanding their presence in the American venture market.
Over the past few years, Saudi Arabian firms have consistently increased their involvement in funding deals and have led or co-led an increasing number of rounds. The data shows a significant rise in their participation, from just nine funding rounds in 2019 to 32 in 2022, even as the broader venture market experienced a slowdown. Saudi Arabia’s Public Investment Fund has been a key player in leading or co-leading major deals, having participated in deals worth over $5.3 billion (SR18.87 billion) since 2016. Other entities, like Sanabil and Prosperity7, have also been actively investing in U.S. startups, contributing to the surge in Saudi investment in the U.S. startup ecosystem.
Despite market fluctuations, Saudi Arabia-based firms remain committed to their investments in U.S. startups, reflecting their confidence in the long-term potential of the American tech scene. This trend indicates that Saudi Arabian investors are poised to continue their active participation in the international venture capital landscape, further fueling innovation and growth in the U.S. startup market.