STV announced during the LEAP 23 Conference in Riyadh the launch of its Total Growth platform, anchored by Saudi Arabia’s National Technology Development Program (NTDP). With $150 million+ in initial commitments and growing, the platform aims to accelerate the growth of technology companies in the region through both equity and debt.
STV, having invested in a portfolio of 30 fast-growing companies, and being among MENA’s most active growth-stage investors, recognized the need for both equity and non-dilutive debt funding for tech companies, particularly in the growth stage. With its new platform, the fund aims to stimulate regional tech ventures, by offering founders access to a suite of funding solutions that serve their needs throughout their growth journeys.
Abdulrahman Tarabzouni, Founder and CEO at STV, commented, “We are excited to enter this new chapter at STV. Over the past 5 years, we have invested in great founders and their companies, many of which have grown to become champions of their sectors. We look to double down on our mission with the STV Total Growth, a unique debt and equity funding platform, that leverages our deep market access and compounding knowledge to fuel technology growth across the region.”
STV Total Growth will use a comprehensive suite of funding instruments to fuel growth-stage technology companies in the region. Aside from equity in the form of venture capital, a newly developed product named Tanami will act as a Sharia-compliant non-dilutive venture debt instrument. The new Tanami instrument is expected to play a key role in the development of the region’s tech ecosystem and finance many rapidly growing companies within the next three years.
The firm projected in a recent report that the MENA region is poised to output 45 unicorns by 2030, presenting a $100b value opportunity and predicting the emergence of the following tech alpha, from MENA to the world. STV will continue backing technology ventures in their growth stage, while the number of institutional investors focusing on such a segment remains limited.
Also Read: 10 Unique Startup Accelerators and Incubators in Saudi Arabia
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Last Updated on February 18, 2023 by Safiya K