Startups in Saudi Arabia have experienced significant growth over the past decade, attracting $3.3 billion in venture capital funding, as reported by MAGNiTT. The “10 Years Saudi Arabia Founders Report” sponsored by Saudi Venture Capital Co. offers a detailed analysis of the backgrounds, experiences, and expertise of founders.
Philip Bahoshy, CEO and founder of MAGNiTT, highlighted the importance of understanding successful entrepreneurs in the MENA region. The report, in collaboration with Saudi Venture Capital Co., aims to provide valuable insights for aspiring entrepreneurs, government decision-makers, and investors in the region.
According to the report, 44 percent of startups in Saudi Arabia were launched by teams with two founding members, securing 53 percent of total funds. Startups with a single founder accounted for 30 percent of funded startups but only received 15 percent of funding. Thirty-six percent of founders had over 10 years of work experience before starting their ventures.
Technical education backgrounds were prevalent among founders, with 59 percent having backgrounds in science, technology, engineering, and mathematics. Additionally, 39 percent of founders had degrees in business, contrasting with the global average. The report also highlighted the importance of education, with 55 percent of founders in the Kingdom holding at least a bachelor’s degree.
Despite fintech being the most funded sector, only 7 percent of founders had experience in finance, while 18 percent had experience in banking. The majority of founders had significant professional experience, with 36 percent having over 10 years of experience before starting their businesses.
The report also addressed gender diversity in the startup ecosystem, noting a significant gender gap with male founders comprising 94 percent of total founders. Only 6 percent were female founders, reflecting a wider gap compared to global norms. The report aims to provide policymakers, government officials, and investors with insights to nurture the startup ecosystem in Saudi Arabia for the next decade.