Saudi Venture Capital (SVC) has signed a MoU with Saudi bourse Tadawul at the Saudi Capital Market Forum (SCMF) 2023 for the launch of a key investment product - Investment in Pre-IPO Funds.

A government investment company, SVC was established in 2018 and is a subsidiary of SME Bank, one of the development banks affiliated with the National Development Fund.

The new investment product by SVC, which comes as part of the kingdom's Investment in Fund Programme, will help boost exit opportunities through the initial public offering (IPO) of shares, reported SPA.

The product also seeks to support the growth of the venture capital and private equity ecosystem in Saudi Arabia, it stated.

The agreement aims to stimulate the listing of startups and small to medium-sized enterprises (SMEs) on the stock market through stimulating investment in pre-IPO funds and also through providing training to startups and SMEs wishing to be listed on the stock market.

According to SVC, the deal is aimed at stimulating and sustain financing for startups and SMEs from pre-seed to pre-IPO through the investment in funds and co-investment in startups. The firm had pumped in money into 35 funds that have in turn invested in 525 companies through 904 deals, it added.

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