KSA's STV Closes US$100 Million Non-Dilutive Capital Fund

Saudi Technology Ventures (STV), the MENA-based US$800 million technology venture capital fund and growth investor, has announced the final close of its first non-dilutive capital fund, STV NICE Fund I, at $100 million.

The announcement follows a commitment from Saudi Awwal Bank (SAB) subsidiary SAB Invest via its Capital Market Authority-licensed Alternative Financing Fund, alongside contributions from several family offices.  

Backed by the National Technology Development Program (NTDP), the fund aims to bridge the funding gap for tech startups in Saudi Arabia by providing vital Sharia-compliant, non-dilutive capital to support their growth in the fast-evolving tech landscape.

The initiative was officially launched on April 30, 2025, in the presence of Lubna Alolayan, Chairperson of SAB, Abdulrahman Tarabzouni, founder of STV, Ibrahim Neyaz, CEO of NTDP, and Ali Almansour, Managing Director and CEO of SAB Invest, along with key stakeholders from the banking and investment sectors. 

The STV NICE Fund I offers a founder-friendly financing solution for growth-stage companies, enabling them to scale without giving up equity. Utilizing the non-dilutive investment in callable equity (NICE) structure, the fund allows startups to tap into high-growth tech opportunities while earning regular income in a Sharia-compliant manner.

To date, it has backed several tech startups, including Morni, a Saudi-based roadside assistance and vehicle services platform; RedBox, a smart last-mile logistics provider offering automated parcel lockers across the Kingdom; and Invygo, a subscription-based car rental platform that provides flexible, app-based car leasing options in the UAE and Saudi Arabia.

In a statement, Ihsan Jawad, General Partner of STV, said, “This milestone marks a pivotal moment in the evolution of tech investment in the Kingdom. We are very pleased to have developed a funding instrument tailored to the needs of regional startups.” 

Ibrahim Neyaz, the CEO of NTDP, added, “Our strategic backing of non-dilutive initiatives will create a sustainable, scalable funding platform to meet the increasing demands of tech startups in the Kingdom. This effort aims to accelerate the growth of these companies, offering access to non-dilutive capital that will foster innovation and contribute to the diversification of the economy.” 

Osama Alowedi, Chief Investment Officer of SAB Invest, added, “Our partnership with STV and the strategic backing of NTDP marks a new era of opportunity for investors and startups alike. SAB Invest’s Alternative Financing Fund offers clients steady, Sharia-compliant income while fueling the growth of Saudi tech companies at the heart of the Kingdom’s economic transformation.” 

This initiative also supports the objectives of the Kingdom's financial sector development program and aligns with the Saudi Capital Market Authority’s new strategy by advancing innovative financing solutions through public-private collaboration.  

Pictured in the lead image is a scene from the ceremony to launch STV's new fund. Image courtesy STV.