Sovereign Wealth Funds Investors took part in the BECO Boost Mena this November 2018 and their new North is pointing towards Venture Capital.
These government programs involve investing state's money into projects that benefit the country's economy and citizens, regionally and globally. And only recently they have shown interest in supporting Venture Capital in the region, using mechanisms such as fund-of-funds; Venture Capital being the funds plowed in risky projects, usually, new and growing businesses, such as startups. Sovereign wealth funds believe that investing at an early stage could allow outsize returns.
The flow of money: from multi-million-dollar investment corporations to the Dubai Chamber of Commerce and Industry and ultimately to the startups giving them their first considerable client, sometimes by working with a third party venture capitalist who points out propitious companies. Up to 24th of April 2018, Sovereign wealth funds engaged in 15 venture capital mega-deals, $10.9 billion of worth according to funding database PitchBook. Sovereign Wealth funds are in no hurry for a quick pay out, neither do they expect outsize in all of their investments but they are however expanding their investments in tech, life sciences and healthcare.
Sovereign wealth funds' attention for startups is sure not easy to grasp, but they are indeed great risk takers and great believers.