Our Thesis

As we navigate through the mid-2020s, the world is facing a confluence of complex challenges and unprecedented opportunities.

For 2024 and beyond, our focus is on industries that we believe will experience the most significant and lasting transformations in the coming decade. We are committed to scaling and providing strategic support to the next generation of technology entrepreneurs who are harnessing the opportunities presented by this rapidly evolving global landscape.

Our experience has taught us that in times of uncertainty, the greatest opportunities emerge. We are more committed than ever to identifying and nurturing the companies that will not only survive but thrive in this new era, shaping the future in profound and positive ways.

Our Sectors

Deep Tech

The exponential growth in data volume, propelled by technological advances has ushered in an era of unprecedented opportunities in deep tech. This goes beyond conventional AI and ML algorithms; it encompasses a spectrum that includes groundbreaking scientific research and innovations, such as next-generation nuclear reactors and advanced material science. We see the potential for transformative impact and substantial value creation in a broad range of sectors in Saudi Arabia.

Net Zero Tech

As global efforts towards a net zero future gain momentum across both developed and emerging markets, Saudi Arabia’s commitment to achieving Net Zero adds a powerful catalyst to this transformation. This convergence creates a fertile landscape for innovation and entrepreneurship, presenting significant opportunities for startups offering groundbreaking solutions in renewable energy, sustainable transport, carbon capture, and smart urban infrastructure.

AI

AI has emerged as a transformative force with the potential to reshape entire economies, especially in regions like the Middle East. Saudi Arabia, in particular, is at the forefront of this transformation, driven by its ambitious Vision 2030 plan. Presenting a unique opportunity for AI-driven innovations. These technologies are crucial for enhancing efficiency, driving economic growth, and addressing complex challenges in areas such as energy, finance, and urban development.

We believe in mission-driven founders with an irrational commitment to their cause based in the UK, Europe or the USA, and at the Series A stage. The best startups require patience as the technology is developed and matured, and markets are built. Our focus is on Deep Tech, Net Zero Tech & AI. These are startups that combine science and engineering to tackle the toughest and potentially most lucrative technical challenges facing Saudi Arabia and the world.

Venture Capital as a Service (VCaaS)

At 7startup, we offer more than just growth capital; we deliver hands-on support in Saudi Arabia and across the Middle East, helping our portfolio companies secure valuable contracts. We operate a hybrid Venture Capital and Value-added Distribution model we call Venture Capital as a Service (VCaaS). By managing and scaling business operations for our portfolio companies in Saudi Arabia we mitigate the high risks typically associated with traditional VC models.

1. Selection

7startup is a strategic partner for post-revenue startups in the rapidly growing industrial and technological landscape in Saudi Arabia. We seek startups with stable revenues, a strong pipeline of future contracts, and at least £500k in revenue with demonstrated year-over-year growth, a strong and knowledgeable team with a defensible IP edge, and the potential to make a significant impact in Saudi Arabia.

2. POC

With our presence in Riyadh, we facilitate market entry by securing proof of concept (POC) agreements leveraging our local ecosystem of investors, leaders, and influential decision-makers. Rigorous real-world validation in live environments allows us to assess strengths, weaknesses, and market potential. Our strong channel partners and sales network enhance our marketing, support, and sales efforts, enabling rapid and effective scaling.

3. Investment

In the third phase, we strategically deploy capital into validated portfolio companies through the 7startup Fund. Following successful POCs and the establishment of a robust pipeline in Saudi Arabia, these companies undergo a thorough evaluation by our investment committee. Those that meet our stringent criteria receive a blend of local in-kind and direct investments, positioning them for rapid growth in the region.

Saudi Arabia’s economy, estimated at $1.8 trillion in 2023, is poised for continued growth, driven by a rebound in the global energy market and the kingdom’s diversification efforts.

Scalable and transformational companies are the cornerstone of successful investments, but these qualities can be elusive and often come at a premium in later stages. Over the past decade, the B2B sector has consistently demonstrated superior value for investors, offering high returns with relatively lower risk compared to B2C companies. However, entering the lucrative Saudi Arabian market presents unique challenges for smaller tech businesses, particularly due to the need to establish a local legal entity and operational infrastructure. Saudi Arabia’s low taxes, low cost of living, and abundant opportunities make it an ideal destination for high-tech, high-growth Western companies.

To overcome entry barriers and mitigate risks, we manage business operations for our portfolio companies in Saudi Arabia, reducing the high risks typically associated with traditional VC models.

Our Approach

By leveraging our integrated VCaaS model, we offer a distinctive investment opportunity that blends operational expertise with strategic capital allocation. Our phased approach not only identifies high-potential startups but actively drives their success, creating substantial value for investors and contributing to economic transformation in Saudi Arabia and beyond.

Customer success is at the heart of our strategy, with a focus on the sales process as the key to building long-term, trust-based relationships. We are committed to providing localised technical support to ensure swift issue resolution and high customer satisfaction.

Our unique positioning in the market is further strengthened by combining practical experience, rigorous testing, and strategic partnerships, enabling 7startup to lead in delivering value-added digital solutions in Saudi Arabia.

We also leverage numerous government initiatives that support private sector growth, such as PIF’s Local Content Growth Program, “MUSAHAMA,” and the Suppliers Development Program, which are crucial to meeting the rising demands of the market. These efforts, aligned with Vision 2030, create vast opportunities for our portfolio companies and drive sustainable development in the region.

Leading Value-Added Digital Solutions in Saudi Arabia

Net Zero Tech

As global efforts towards a net zero future align across developed and emerging markets, a ripe landscape for innovation and entrepreneurship emerges. This shift presents significant opportunities for startups offering unique solutions in renewable energy, sustainable transport, carbon capture, and smart urban infrastructure.

Saudi Arabia, one of the world’s largest oil exporters, is simultaneously positioning itself as a leader in clean energy innovation. The kingdom is actively promoting net-zero technologies to reduce its carbon footprint and achieve ambitious climate goals. With a target of reaching net-zero emissions by 2060, Saudi Arabia is among the first in the Middle East to make such a commitment. This goal is supported by significant investments in renewable energy, particularly solar and wind power, and initiatives like the Saudi Green Initiative and the Middle East Green Initiative.

The global shift towards net-zero

Renewable Energy -ambition and the art of the possible in the search for a hydrogen economy.

Mobility and Transport – electricity from renewables and clean hydrogen are crucial for zero-emission transport, enabled by advancements in electric vehicles and smart systems.

Built Environment -smart cities of the future incorporate sustainable technologies, reducing emissions and improving efficiency.

Industrial & Business Processes – electrifying processes and leveraging digital transformation can enhance transparency and efficiency, driving innovation.

Deep Tech

If you’re a technical founder who’s struggled to explain your tech and vision to investors, we’re the right partner for you. Our involvement evolves to help refine your product-market fit and begin laying the groundwork for scalable growth in Saudi Arabia.

Moving into the Series A phase, the narrative shifts towards scaling your operations and expanding market reach. We emphasise building robust sales pipelines, solidifying customer acquisition strategies, and scaling your business operations.

We define deep technology as the integration of visionary ambition and pragmatic execution. Deep Tech ventures take on some of the world’s greatest challenges while delivering commercially viable results all along the way – including transforming entire markets.

AI & Machine Learning – We prioritise startups pushing the boundaries of AI & ML technology beyond mere application layers, with a strong focus on real-world applications in the Kingdom of Saudi Arabia. We seek companies developing cutting-edge deep learning algorithms for autonomous vehicles, industrial automation, and manufacturing, as well as revolutionary computer vision technologies that can transform sectors.

Robotics -the convergence of advanced hardware, AI, and automation fosters innovations in intelligent machines capable of autonomous complex tasks. We focus on opportunities driving innovation and transforming traditional processes from autonomous vehicles, industrial automation, logistics and supply chain, construction to retail and hospitality.

”As we advance toward 2030, the focus on AI, Deep Tech, and Net Zero is more critical than ever. While other sectors face saturation, Deep Tech continues to demonstrate remarkable growth and resilience. Over the past decade, venture capital investment in Deep Tech has surged, now representing a significant portion of all venture capital funds. With forecasted investment expected to exceed $500 billion by 2030, Deep Tech is not only on the rise but also proving to be one of the most robust and future-proof investment opportunities. As the world accelerates towards AI-driven solutions and Net Zero goals, Deep Tech stands at the forefront of innovation, offering unparalleled potential for both impact and returns.” – Amit Khanna, CEO, 7startup