Qatar all set to invest $1b into regional, international VC funds
Qatar Investment Authority to create Gulf state's first VC-targeted fund of funds
Dubai: The Qatari wealth fund is putting up $1 billion and more into what is said to be the Gulf state’s first venture capital focused fund of funds. This will be done by Qatar Investment Authority.
The $1 billion will go into a raft of regional and international VC funds, and will be done with two key objectives.
First, generate market-level commercial returns in line with QIA’s mandate to secure long-term ‘returns to the people of Qatar’.
And two, support the sustainable development of a ‘vibrant’ VC and start-up ecosystem in line with Qatar's National Development Strategy (NDS3). The latter which seeks to increase the number of startups and the availability of VC funding in the local market.
Attracting leading international VC funds and entrepreneurs is part of the plans, to Qatar and the wider GCC region. This would bring 'deep' VC and start-up expertise, and help with the the growth of a local and regional base of venture capitalists and startup founders.
The tech sector will have obvious priority in where the funds are parked, including fintech and edtech, as well as the healthcare sector.
It will primarily invest indirectly via other VC funds - but can make 'targeted co-investments' with the participating funds. (The Fund of Funds program will only invest in VC funds and not in private equity, debt, or any other funds.)
More to follow...