In recent years, the venture arm of the sovereign wealth fund of Saudi Arabia, PIF, has been increasingly active in making deals in the tech industry. The fund, which manages assets worth $650 billion, has been known to commit large sums of money to tech startups and companies through its investment arm, Sanabil Investments.
Only recently, the extent of PIF’s involvement in Silicon Valley was a matter of speculation, with many people unaware of the scope of its participation in US startups and venture capital firms. However, Sanabil Investments has now disclosed the firms to which it has committed and its direct investments on its website. This move has provided greater transparency on PIF’s activities and has revealed a more extensive network of investments than was previously known.
The disclosures made by Sanabil Investments indicate that PIF’s venture arm has been involved in a range of investment activities, including VC, growth, and buyout investments. The fund commits a significant amount of around $2 billion annually to these investment activities.
Check out the list of US VC and PE investors
The list includes dozens of US VC and PE investors, such as Andreessen Horowitz, 500 Global, Coatue, and KKR. Sanabil has also invested in several tech startups, including e-scooter provider Bird, banking startup Varo, and Oura, which makes wearable health-monitoring devices.
The move towards greater transparency by Sanabil follows a significant increase in startup investments by the fund in recent years. According to data from PitchBook, 22 out of the wealth fund’s 38 previously known assets took place in 2022.
Sanabil Investments, the investment arm of PIF, has revealed a list of direct investments on its website, including several companies not previously known to be associated with the fund’s growth investment arm. These companies include ActionIQ, Bird, CallSign, EMA, Oura, Varo, Vectra AI, consultancy firm Richard Attias & Associates, and VC firm NEA. Varo declined to provide a statement when contacted for comment, and the others did not respond.
The disclosure of these investments is significant, as it reveals a wider range of companies that have received funding from PIF’s venture arm. This information may interest those who track the investment activities of sovereign wealth funds and the tech industry.
Despite the criticised human rights record of Saudi Arabia, some firms are actively courting their investment
Following the killing of journalist Jamal Khashoggi in 2018, some investors and founders have sought to distance themselves from the Saudi royal family. Despite this, Sanabil and PIF have remained active players in the global venture landscape. Some VC firms appear to be actively courting their investment, despite criticism of Saudi Arabia’s human rights record.
At a Miami conference panel, Ben Horowitz of Andreessen Horowitz praised Saudi Arabia as a “startup country.” Sovereign wealth funds in the Middle East are reportedly increasing their commitments, according to Stefan Heller of AlphaQ Venture Capital. However, some investors and founders have criticized the human rights record of those connected to the Saudi royal family.
Heller said, “I’ve met with [the state funds] multiple times and know them quite well. They are very actively committing, especially last year.”
Recently, OPEC and its allies decided to cut oil production, which could further impact the global oil and gas market. Oil and gas producers are experiencing record profits, expected to increase the capital available to sovereign wealth funds in the Middle East. This comes at a time when other investors are struggling with losses.
