Question

What is the strategic role of venture capital in developing entrepreneurship in Saudi Arabia?

Answer 1

The funding shall be done by venture capitalist which raises funds in various rounds of funding. It is in the form of private equity. In Saudi Arabia it has helped in the development of new start-ups and new entrepreneurships. It may be provided in monetary terms or by technical knowhow transfers etc. According to the 2019 Global Entrepreneurship Monitor report, around 76.3% of the population in Saudi Arabia has started a new business. Saudi Arabia has the second highest percentage when compared among a pool of 49 countries. Such an ecosystem has stakeholder groups that include venture capital funding. In a venture capital, large ownership of a company sold to a few investors through venture capital firms.