One of the top integrated energy and chemical companies in the world, Aramco, has given its global venture capital arm, Aramco Ventures, an extra $4 billion. It will increase its total investment allocation from $3 billion to $7 billion, more than doubling the capital granted to Aramco Ventures.
With this investment, Aramco’s total venture capital commitment will rise to $7.5 billion. This sum includes the $500 million venture capital fund Wa’ed Ventures, which is dedicated to supporting the Kingdom of Saudi Arabia’s startup ecosystem.
The choice is a reflection of the growing importance of Aramco’s venture capital program in fostering the creation of novel and disruptive technologies, opening doors for Aramco’s diversification, and laying the groundwork for partnerships with creative start-ups. The company’s long-term strategy, which emphasizes new energies, chemicals and transition materials, diversified industrial businesses, and digital technologies, is intended to be advanced by doing this.
Ahmad Al Khowaiter, Aramco Executive Vice President of Technology & Innovation, said: “Innovation is key to addressing some of the fundamental challenges facing the world today, including the energy transition. Through Aramco Ventures, we aim to support pioneers with big ambitions and ultimately help bring their ideas to life. By injecting an additional $4 billion in funding over the next four years, we intend to provide the financial backing required to take game-changing solutions to the next level. This will provide crucial impetus to businesses at various stages of development around the world while also contributing to Aramco’s own long-term objectives.”
Before the recent capital increase, Aramco Ventures oversaw three funds. These are the Prosperity7 Fund, which has $1 billion invested in disruptive technology ventures outside the energy sector; the $500 million Digital/Industrial Fund, which invests in technologies of strategic importance to Aramco; and the $1.5 billion Sustainability Fund, which invests in start-ups with the potential to support Aramco’s ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned and operated assets by 2050.
