New Delhi, Feb. 3 -- Qatar Investment Authority (QIA), a sovereign wealth fund with more than $580 billion in assets under management, will expand its venture capital initiative by $2 billion, Qatar's Prime Minister Sheikh Mohammed bin Abdulrahman bin Jassim Al-Thani said on Monday.
"This year, we move from momentum to scale. To reinforce Qatar's commitment to the global startup ecosystem, I am pleased to announce the expansion of the fund-of-funds (FoF), building on the Qatar Investment Authority's initial $1 billion program, which has already anchored 12 major VC funds in Doha," he said at Websummit in Doha, according to a statement. "We are expanding the program by an additional $2 billion."
The state investor launched the fund-of-funds program two years ago, wherein it planned to invest over $1 billion in international and regional capital funds as part of a strategy to develop the venture capital and startup sector in the gas-rich Gulf and neighboring states. QIA had said the program would invest in only VC funds, not private equity or debt.
The additional funding takes the total capital commitment for the fund-of-funds program to $3 billion, according to a statement.
QIA also said it will back five new funds as part of the initiative, with a focus on AI, fintech, blockchain technology, infrastructure and special situations. These include three US VC firms (Greycroft, Ion Pacific, Liberty City Ventures), UAE-based Shorooq Partners and Austria's Speedinvest.
Previously, the sovereign investor had invested in multiple funds such as Qatar-linked Rasmal Ventures, Facebook co-founder Eduardo Saverin's B Capital, London-headquartered Utopia Capital Management, and San Francisco-based Builders VC, among others.
"Qatar's position as an attractive investment destination for global capital is evidenced by the caliber of VC firms looking to bring expertise to promising local ventures. With an aggregate AUM of nearly $10 billion, the new funds joining the program will support our efforts to develop Qatar as a regional hub for VC expertise," said Mohammed Saif Al-Sowaidi, chief executive of QIA. "While Doha represents the first international office for many of our funds, these managers are also encouraging their portfolio companies to establish their regional HQ here, further positioning Doha as a hub for entrepreneurs."
Meanwhile, Abu Dhabi-based multi-asset investment firm Shorooq Partners announced the launch of a $200 million late-stage growth fund under its Qatalyst Series, backed by QIA and other sovereign and institutional partners across the GCC and Asia. The fund will support mature businesses with proven scale, strong fundamentals, and clear pathways to exit, particularly through the IPO route.
Shorooq, founded in 2017 by Mahmoud Adi and Shane Shin, manages a portfolio of around 80 companies. It offers venture capital and venture-debt strategies. It is currently deploying through its third venture capital fund, Bedaya Fund II, and is raising a $100-million debt fund, Nahda Fund II, to finance tech startups in the region.
Last year, it had also partnered with artificial intelligence and big-data analytics company Presight, which is backed by Abu Dhabi's technology group G42, to launch an AI fund.
Published by HT Digital Content Services with permission from VC Circle.