Qatar Investment Authority’s new $1bn VC fund to boost startup ecosystem

In a move to bolster innovation and economic diversification, the Qatar Investment Authority (QIA) announced the launch of the country’s first-ever venture capital (VC) Fund of Funds.

This strategic programme will invest over $1bn into international and regional VC funds, aiming to foster a thriving local startup ecosystem and support entrepreneurs.

It will not invest in private equity, debt, or any other funds.

Fund to contribute to the Qatar National Development Strategy

The programme has the following goals: It seeks to deliver profitable investments benefitting Qatar’s long-term economic development. It will also directly contribute to Qatar’s National Development Strategy (NDS3) by fostering a vibrant VC ecosystem.

It will attract leading international VC funds and entrepreneurs, thus bringing onboard invaluable expertise that contributes to building a strong local and regional base of venture capitalists and founders.

It will also support local and regional startups, prioritising the tech sector (including fintech, edtech) and healthcare as well as addressing a current funding gap for entrepreneurs seeking Series A to Series C funding.

QIA CEO Mansoor Ebrahim Al-Mahmoud, emphasised: “QIA is launching this programme to help ensure that innovative businesses can readily access capital and support from VC funds, enabling them to scale operations and expand market presence in Qatar, across the GCC, and ultimately onto the international stage.”

Key details

Fund managers wishing to raise funds will have to demonstrate consistently strong commercial performance. They will need to show dedication to the region, potentially including establishing a presence in the country and contributing to the wider ecosystem.

The programme will encompass international, regional, and emerging local fund managers, fostering collaboration within the country’s VC and startup ecosystem.

QIA will announce further details 0about the programme launch in due course.