The first venture capital (VC) fund of funds in Qatar is about to be introduced by the Qatar Investment Authority (QIA), a strategic investment initiative designed to support innovation in the country.
According to a statement released by QIA on Monday, the fund of funds program will invest over $1 billion in regional and international venture capital funds.
The statement outlines the two main goals of the program.
In keeping with QIA’s mandate to provide sustainable, long-term returns to the Qatari people, it will produce market-level commercial returns.
Simultaneously, it will facilitate the long-term growth of a thriving venture capital and start-up ecosystem in accordance with Qatar’s National Development Strategy (NDS3), which aims to augment the quantity of startups and the accessibility of venture capital funding in the regional market.
With the goal of bringing deep VC and start-up expertise to Qatar and the larger Gulf Cooperation Council (GCC) region, the program will aim to draw top international VC funds and entrepreneurs. It will also help to expand the local and regional pool of venture capitalists and founders.
The program will give the tech industry—including fintech and edtech—as well as the healthcare industry top priority.
Mostly, it will invest indirectly through other venture capital funds, but it will also have the ability to co-invest with participating funds on specific projects.
Only venture capital funds will be invested in by the fund of funds program; no debt, private equity, or other funds will be used.
The program seeks to close a funding gap that local and regional entrepreneurs are currently facing with significant strides.
“There is currently no dedicated pool of capital in Qatar for companies that are past seed funding and are ready for Series A to Series C funding rounds,” said QIA Chief Executive Officer HE Mansoor Ebrahim Al-Mahmoud.
“Building a well-connected start-up ecosystem network in Qatar is fundamental to diversifying the country’s economic base in the long term,
“QIA is launching this program to help ensure that innovative businesses can readily access capital and support from VC funds, enabling them to scale operations and expand market presence in Qatar, across the GCC, and ultimately onto the international stage,” he added.
