| Saudi Arabia’s drive to accelerate the activities of small and medium enterprises (SMEs) received a big boost with the latest iteration of The Saudi British Bank’s (SABB) latest accelerator programme.
Now in its fourth year, Taqadam Startup Accelerator, was launched by SABB in collaboration with King Abdullah University of Science and Technology (KAUST) with the aim to fund projects, support new ideas, and invest in the next generation of Saudis.
“The programme is one of SABB’s key social initiatives as part of its responsibility toward the community, and to complement its pioneering role in supporting young people’s aspirations, and contributing to developing a generation capable of leading the country in the fields of trade, industry, knowledge and technology,” the bank said.
KAUST is one of Saudi Arabia’s most innovative universities and considered a hub of innovation for local and international start-ups.
“In the last decade, KAUST has graduated more than 200 start-ups who raised nearly USD 60 million of investment funding. KAUST has significant expertise in designing and implementing start-up accelerators and entrepreneurship training programmes in Saudi Arabia with over 8,000 innovators graduated,” the university noted.
The two Saudi powerhouses are pooling together their resources and intellectual capital to build on the kingdom’s burgeoning start-up culture, which has already emerged as vibrant breeding ground for new companies.
Last year, Saudi-based start-ups saw a record 71 investments valued at USD 67 million, a 92% increase over 2018, according to start-up data platform Magnitt. A record 41 institutions invested in Saudi-based start-ups in 2019, with accelerators accounting for 32% of all investments.
“Saudi Arabia is one of the fastest growing ecosystems in the region. With the government clearly identifying innovation and entrepreneurship as one of their key focuses in line with Vision 2030, many new initiatives have been launched in 2018 and 2019,” said Philip Bahoshy, founder of Magnitt. “Usually, these initiatives take time to come to fruition, but we have already seen their impact on the ecosystem in the country and MENA region.”
4th EDITION
Taqadam 4 will nurture young entrepreneurs and become a platform to turn creative ideas into successful and sustainable businesses. Over the past three years, 78 start-up teams have received funding of more than SAR 12 million. Altogether, the programme has created more than 300 jobs.
The programme offers a number or robust training and guidance services to help entrepreneurs sharpen their skills.
A training and workshops initiative focuses on product development, pitching, marketing and fund raising. A coaching and mentorship processes connect each start-up team with an entrepreneur, who offers advice and recommendations to enhance their business models. Also, start-ups will have access to co-working spaces, prototyping labs and six months of post-accelerator incubator support.
The programme also provides a cluster benefit as the community of Taqadam 4 entrepreneurs, mentor and industry experts can generate new ideas and innovations. According to Taqadam, the community features more than 300 entrepreneurs, 100 mentors and industry partners passionate about start-ups.
The successful start-ups will have the opportunity to pitch at final showcase to leading investors in the region and for the opportunity to win SAR 375,000 in zero-equity follow-on funding. In addition, they will have exposure to KAUST’s and SABB’s existing network of partners, potential clients, and investors, including the KAUST Innovation Fund.
“The ‘Taqadam’ programme represents an example for major initiatives and is an important and effective step to ensure that the precious ideas and the new innovative technologies value in the kingdom are granted a platform in order to move from the laboratory to the market,” according to the bank.
The applications to get into the programme closed on 20 March, while a six-month accelerator programme starts near the end of June. By February 2021, the qualifying start-ups will have the opportunity to pitch to more than 30 local and international investors, industry experts, and communities.
Start-up graduates from Taqadam have access to co-working space, labs, networking and administrative support.
SABB and KAUST are looking for start-ups in disruptive industries such as FinTech, cyber security, mobility, energy, water, health, digital and logistics.
The programme adds to the growing focus on developing the next wave of Saudi companies to diversify the economy and focus on new sectors that are part of the 4th Industrial Revolution – the next generation of industries that will drive economic growth. |
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