Qatar Investment Authority (QIA), the country’s sovereign wealth fund, has announced its plans to launch its first venture capital (VC) Fund of Funds, a strategic investment program to foster innovation in Qatar.
The Fund of Funds program will invest more than $1 billion in international and regional venture capital funds to foster innovation, with a specific focus on the tech sector including fintech, edtech and healthcare initiatives, the country said in a statement.
“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,” said Mansoor Ebrahim Al-Mahmoud, CEO of QIA.
The programme will primarily invest indirectly via other VC funds but will be able to make targeted co-investments with the participating funds. It will “not invest in private equity, debt, or any other funds”, according to the statement.
The programme will aim to attract leading international VC funds and entrepreneurs both to Qatar and the wider GCC region, bringing deep VC and startup expertise, and contributing to the growth of a local and region base of venture capitalists and founders.
Fund managers wishing to raise funds will need to demonstrate a solid track record, including consistently strong commercial performance. They will also be required to show a commitment to Qatar and be set to play an active role in the GCC VC and startup ecosystem.
Currently, Qatar does not have a pool of capital dedicated to supporting businesses that are past seed funding and are ready for Series A to Series C investment rounds.
Qatar has been recently making strides to foster innovation and digitalisation. The country’s Central Bank has recently launched an instant payments platform and the country has signed a collaboration agreement with the World Economic Forum (WEF) to establish a Center for the Fourth Industrial Revolution (C4IR) in Qatar.
