MSA Capital, a Chinese venture capital enterprise with financial backing from Saudi Arabia’s Public Investment Fund subsidiary, is gearing up to amass a $1 billion fund. This substantial capital will be channeled into financing burgeoning technology startups across the Middle East, as per a recent report from Bloomberg News.
The initiative is expected to kick off by the year 2024, with MSA Capital’s Managing Partner Ben Harburg spearheading the launch. Our objective is to play at later stages and write bigger tickets in those pre-IPO rounds, then we can take them public,
Harburg explained, indicating a strategic focus on mature investment opportunities just before they go public.
Conversations are currently underway with regional investors to solidify the funding strategy. With an impressive $2.5 billion in managed assets, MSA Capital enjoys the patronage of the Jada Fund of Funds, which operates under the umbrella of Saudi Arabia’s sovereign wealth fund.
The sovereign wealth fund of Saudi Arabia is no stranger to the startup ecosystem, having made multiple investments in line with the nation’s Vision 2030 objectives.
According to data from MAGNiTT, Saudi Arabian startups have been leading the charge in venture fundraising within the kingdom, securing approximately $1.3 billion in 2023 alone.