Saudi Venture Capital invests in Khwarizmi’s second fund for Gulf tech startups

Saudi Venture Capital has invested in Khwarizmi Venture Capital Fund 2, a new vehicle aimed at backing early-stage technology startups across the Gulf region, according to Wamda and a statement from SVC. The fund will focus on Seed to Series A companies, and at least half of its capital will be directed to startups based in Saudi Arabia.

The investment adds fresh support to Khwarizmi Ventures, a Saudi-based firm that has positioned itself as an early backer of startups with proven traction in the GCC. According to the firm’s own description, it has been investing in the region since 2018, with a focus on companies that can scale beyond their home markets.

The fund is sector-agnostic, but Khwarizmi says it sees especially strong opportunities in fintech, e-commerce and AI applications. That broad mandate gives it room to back a wide range of tech-enabled businesses, while the emphasis on Saudi-based companies aligns with the kingdom’s push to deepen its startup ecosystem.

For Saudi Venture Capital, the move reflects its continued role in channeling capital into local venture funds as part of wider efforts to expand financing for emerging companies. The backing is also likely to matter for founders seeking institutional investors willing to support the riskier early stages of company building, when access to capital can determine whether a startup reaches product-market fit or stalls.

Khwarizmi Ventures has been active in the regional startup market for years and is known for early-stage investing across the GCC, according to company profiles on Caplight, MAGNiTT and the firm’s own website. Its portfolio approach has centered on startups with traction rather than unproven ideas, a strategy that fits the Seed to Series A stage targeted by the new fund.

The announcement comes as Saudi Arabia continues to promote venture investment and private-sector innovation as part of its broader economic diversification agenda. For startups in Saudi Arabia and neighboring Gulf markets, the fund could provide another route to early financing at a time when regional investors are paying close attention to sectors such as digital commerce, financial technology and AI.