Home Venture Capital Aramco Enhances Venture Capital Funding Size to $7 bn

Aramco Enhances Venture Capital Funding Size to $7 bn

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Saudi Aramco

Saudi Aramco

Aramco, an integrated energy and chemicals company, has announced a substantial increase in funding for its global venture capital arm, Aramco Ventures.

The company will inject an additional $4 billion into Aramco Ventures, more than doubling its existing capital and elevating the total investment allocation from $3 billion to $7 billion.

This decision, set to augment Aramco’s overall venture capital allocation to $7.5 billion, underscores the company’s recognition of the pivotal role played by Aramco Ventures. This figure includes the $500 million earmarked for Wa’ed Ventures, a venture capital fund specifically dedicated to fostering the startup ecosystem in the Kingdom of Saudi Arabia.

The increased funding aims to fortify Aramco Ventures as a driving force behind the development of groundbreaking technologies. The venture capital program is strategically positioned to facilitate diversification opportunities for Aramco and foster collaborations with innovative startups. This move aligns with Aramco’s long-term strategy, focusing on new energies, chemicals, transition materials, diversified industrial businesses, and digital technologies.

Ahmad Al Khowaiter, Aramco Executive Vice President of Technology & Innovation, emphasized the critical role of innovation in addressing global challenges, particularly in the context of the energy transition.

“By injecting an additional $4 billion in funding over the next four years, we intend to provide the financial backing required to take game-changing solutions to the next level. This will provide crucial impetus to businesses at various stages of development around the world, while also contributing to Aramco’s own long-term objectives,” Ahmad Al Khowaiter said.

Prior to this substantial capital injection, Aramco Ventures managed three funds, each tailored to distinct strategic objectives.

The Digital/Industrial Fund, valued at $500 million, focuses on investing in technologies of strategic importance to Aramco. The Prosperity7 Fund, with a capital of $1 billion, is directed towards disruptive technology ventures beyond the energy sector.

Lastly, the Sustainability Fund, standing at $1.5 billion, concentrates on investing in startups with the potential to support Aramco’s ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned and operated assets by 2050.

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