Plug and Play, a Silicon Valley-based venture capital firm, plans to raise $100 million to invest in Saudi Arabian technology startups, potentially with support from a unit of the kingdom's sovereign wealth fund, PIF.
The American firm is one of the earliest backers of technology companies, including Dropbox and PayPal Holdings.
Founder and CEO Said Amidei told Reuters in an interview in Riyadh that Plug and Play is in talks with Jada, a PIF-backed fund of funds created to boost the kingdom's venture capital sector.
The new fund could launch by January 2023, with Plug and Play contributing up to 10% of the capital and the rest raised from Saudi funds and family offices.
Amidei said the quality of Saudi startups has improved in recent years but Plug and Play will maintain its investment criteria. The firm currently manages five funds totaling $500 million and plans to launch five more.
The Saudi government is encouraging entrepreneurship and venture capital as part of efforts to diversify the oil-dependent economy and create private sector jobs. In 2021, Jada also backed a $50 million Middle East fund managed by Hambro Perks.
