By Andrew Mills
Doha (Reuters)-The Sovereign Fund of Qatar assesses eight venture capital companies to add to its venture capital program “Fund of Funds, which has already invested nearly $ 500 million in six companies, manager of funds Of Qatar Investment Authority (QIA (QIA) told Reuters on Monday.
The $ 1 billion program will be almost entirely invested if the eight additional companies are selected, Mohin Pirzada, the head of QIA funds, in Reuters of the Summit Qia, told Reuters, an edition of the Middle East of the largest world technological conference.
“At one point, there will be a conversation around potential expansion,” said Pirzada.
The venture capital program represents less than 0.2% of QIA assets, estimated at $ 526 billion.
The program was designed to fill a gap in the financing of series A, B and C venture capital in Qatar in order to attract funds in the Arab state of the Gulf and to build a stronger environment for the entrepreneurship in the country.
Qia will not say which additional funds are being studied.
“QIA is obviously a financial investor, and we therefore always expect a return to be made from these investments. It is not a charity,” said Pirzada.
Qatar, a rich producer of gas, has been working for years to diversify its domestic economy and is disputed with great neighbors in Saudi Arabia and the United Arab Emirates to attract financial companies to establish in Doha.
The QIA has received requests from around 120 companies to join the program since it was unveiled during the 2024 edition of web Summit Qatar and, so far, it has selected B Capital, Deerfield, Rasmal Ventures, Utopia, Builders VC and Human Capital.
Each of these companies will open offices or a regional headquarters in the Arab state of the Gulf, which, according to Pirzada, was not a requirement but something strongly encouraged.
“By having people based in Doha, you actually bring this ecosystem, this network effect that these individuals have, in the country,” he said.
Utopia, one of the companies in the program, has created its new venture capital fund focused on the Middle East called A-Typical in Qatar. The fund plans to hire between 15 and 18 employees in Doha, said Alina Truhina, a managing manner of Utopia.
(Report by Andrew Mills; edition by Susan Fenton)
