TechCrunch has learned that the program, known as the “Startup Qatar Investment Program,” is backed by a Qatar Development Bank (QDB)-managed $100 million fund.
Like most venture ecosystems, several of these requirements are mandated by limited partners, primarily sovereign wealth funds, in the Gulf upon these venture capital firms.
Just last week, Qatar’s sovereign wealth fund unveiled a $1 billion venture capital fund of funds dedicated to international and regional venture capital funds.
For Qatar, launching its fund of funds and startup program signifies a crucial step toward developing its tech ecosystem to rival its neighbors, Saudi Arabia and the UAE.
Last year, the MENA region experienced a 23% decline in venture capital activity compared to the global average of 42%.
The Qatar Investment Authority (QIA) is launching a $1 billion venture capital (VC) fund of funds for international and regional venture capital funds, the sovereign wealth fund announced on Monday.
Similar to typical fund-of-funds structures, QIA’s initiative will invest indirectly through other VC funds but also make targeted co-investments with participating funds.
These funds, aiming to reduce reliance on oil, have increasingly poured money into tech startups in the region, hoping to nurture a thriving venture capital industry.
However, unlike Jada, the PIF’s $1 billion fund of funds and Saudi Venture Capital (SVC), which targets both venture capital and private equity funds, QIA’s fund of funds focuses solely on venture capital funds, marking the first of its kind in the region.
Historically, these wealth funds have backed foreign startups primarily in the U.S. and Asia, with limited ties to the Gulf region.
