Total capital committed by VC firms to Saudi startups fell 42% y-o-y in 1Q 2024 to USD 240 mn across 35 transactions, according to venture data platform Magnitt’s 1Q KSA Venture Investment Report. Saudi attracted 65% of the total capital raised by startups in the MENA region in 1Q.

Salla led the charge: The pre-IPO round of e-commerce app Salla accounted for more than half of the funds raised during the first quarter of the year, with USD 130 mn in investment tickets during Leap 2024 last March. The round was the region’s only megadeal during the quarter.

Smaller tickets, but not a “retreat in investor sentiment”: The MENA region as a whole saw a downturn in VC investments during the quarter, said Magnitt Founder and CEO Philip Bahoshy. “While funding saw a downturn, the deal flow in Saudi Arabia remained nearly flat, posting a modest 13% decrease in 1Q 2023. Digging deeper, it becomes evident that while the overall funding has diminished, the Kingdom’s entrepreneurial ecosystem continues to attract investors.”

How Saudi startups are faring in 2Q 2024 so far: Three Saudi startups raised a combinedUSD 4.8 mn in April. That’s a 60% y-o-y increase compared to the USD 3 mn three Saudi startups raised in April 2023.

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