Growth Catalysts closes first fund since Iran War

Saudi fundraising is regaining momentum as investors double down on the long-term growth story. Growth Catalyst Investment Management’s Growth Catalyst Fund secured SAR 360 mn (USD 96 mn) to invest in firms across the Kingdom, within a target size of SAR 750 mn, according to a press release. The firm became one of the first private-sector investors to close a fundraising round since the start of the Iran war.

Who pitched in? The round attracted backing from government entities, investment institutions, endowments, family offices, and individuals, including Saudi Venture Capital (SVC).

Where will the money go? The fund eyes deployments in companies across business services, consumer goods, healthcare, and technology. “We look forward to deploying capital into promising [prospects] that support the growth of Saudi mid-sized companies,” Founder and CEO Turki Al Dayel told Semafor.

The Iran war may have strengthened Saudi’s case: The conflict “reinforced what experienced investors already recognize: that Saudi Arabia has become an anchor of stability and economic momentum in the region,” Al Dayel said.

What’s next? Growth Catalyst aims to more than double the fund’s size over the next six months before its final close, Al Dayel added.

ALSO- SVC poured funds into Khwarizmi Ventures’ Khwarizmi Venture Capital Fund 2, according to a LinkedIn announcement. The fund will target seed-to-Series A startups across the GCC, with at least 50% of capital allocated to Saudi Arabia. It will focus on high-growth tech and tech-enabled companies, especially in fintech, e-commerce, and AI applications across industries.

REMEMBER- SVC plans to grow its investment portfolio to USD 3 bn by 2030. The focus of such investments is now shifting toward health tech, education, and deeptech.