Qatar Investment Authority, the sovereign wealth fund of Qatar is set to launch a VC fund of funds to invest over $1 billion in regional and international venture capital funds. The move was announced at Web Summit (which is taking place in Doha) on Monday.
The sovereign wealth fund has previously invested directly and indirectly in different technology firms across the world. It’s most recent tech investment, according to its website, was in $500 million Series I of Databricks, an analytics platform for big data processing and machine learning.
QIA does not have exposure to technology investments across the region. With this latest vehicle, it is aiming to change that. The fund of funds will help with the development of a VC and startup ecosystem in the country, which is inline with country’s National Development Strategy.
The second objective of the fund, according to a statement by QIA, will be to “generate market-level commercial returns in line with QIA’s mandate to secure sustainable, long-term returns to the people of Qatar.”
With a primary focus on technology, including fintech, edtech, and healthtech, the fund aims to attract top international VC funds and entrepreneurs to Qatar and the broader GCC region.
The fund will mainly invest through other VC funds but will also have the option to make targeted investments with participating funds, noted a statement by QIA.
Its size makes it one of the largest fund of funds in the region. Jada by Saudi’s Public Investment Fund is a $1.07 billion (SAR 4 billion) fund of funds that invests in VC and private equity funds with a presence in the region.
QIA’s fund of funds will be strictly focused on venture capital. It won’t invest in private equity, debt, or any other funds.
The other notable fund of funds in the region include Bahrain’s $100 million Al Waha, the $272 million (AED 1 billion) Dubai Future District Fund by Dubai International Financial Centre (DIFC) and the Dubai Future Foundation (DFF).
UAE’s Mubadala and Saudi’s SVC have also been investing in VC funds (and startups) in the region through their different vehicles.
Mansoor Ebrahim Al-Mahmoud, the CEO of Qatar Investment Authority, commenting on the announcement, said, “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. Building a well-connected startup 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.
The fund of funds will invest in fund managers with a strong track record of consistent commercial success. QIA also expects them to demonstrate a commitment to Qatar and an active role in the startup ecosystem of GCC. The fund may require fund managers to establish operations in Qatar and set-up senior-level presence in the country.
