HomeSaudi ArabiaAramco Expands Global Venture Capital Program With $4 Billion Injection

Aramco Expands Global Venture Capital Program With $4 Billion Injection

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Aramco, a Saudi Arabia-based global integrated energy and chemicals company, allocated an additional $4 billion to its global venture capital arm, Aramco Ventures.

It will more than double the capital allotted to Aramco Ventures, increasing its total investment allocation from $3 billion to $7 billion. The new allocation will take Aramco’s overall venture capital allocation to $7.5bn, which also includes the $500m venture capital fund Wa’ed Ventures that focuses on the startup ecosystem in the Kingdom of Saudi Arabia.

The capital injection reflects the increased importance of Aramco’s venture capital program in enabling the development of new technologies, creating diversification opportunities for the company, via collaborations with innovative startups. In doing so, the investment aims to help advance the company’s long-term strategy, which includes a focus on new energies, chemicals and transition materials, diversified industrial businesses, and digital technologies.

Headquartered in Dhahran with offices in North America, Europe and Asia, Aramco Ventures is the corporate venturing subsidiary of Aramco whose strategic venturing programs invest globally in startups and high growth companies with technologies of strategic importance to its parent, primarily supporting the company’s operational decarbonization, new lower-carbon fuels businesses, and digital transformation initiatives. Aramco Ventures also operates Prosperity7, the company’s technologies investment program.

Prior to the new capital allocation, Aramco Ventures managed three funds. These are:

  • the Digital/Industrial Fund, which stood at $500m, investing in technologies of strategic importance to Aramco;
  • the Prosperity7 Fund with $1 billion, investing in disruptive technology ventures beyond the energy sector; and
  • the Sustainability Fund, which stood at $1.5 billion and invests 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.

VCWire

17/01/2024