Saudi Venture Capital (SVC), a state-backed fund of funds, is investing $20 million to back early-stage businesses.

The investment in Booster Fund IV, which is managed by Dubai-based venture firm BECO Capital with $495 million in assets under management (AUM), is in line with the strategy to support start-ups in Saudi that show a high potential for growth, according to Nabeel Koshak, CEO and Board Member at SVC.

BECO’s fund seeks to support early-stage entrepreneurs in Saudi Arabia and the rest of the Gulf region.

SVC is a subsidiary of the National Development Fund’s SME Bank. It seeks to stimulate and sustain financing for start-ups and SMEs from pre-Seed to pre-IPO.

It has backed 50 private capital funds that subsequently supported hundreds of entrepreneurial ventures.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com