STV aims to accelerate the growth of tech firms through equity and debt financing and has initial commitments of over USD 150 million.
STV, the Saudi Arabia-based investment firm, has launched its Total Growth platform with the support of Saudi’s National Technology Development Programme (NTDP). The platform aims to accelerate and support the growth of tech companies across the region through debt and equity funding. The firm claims to have over USD 150 million in initial commitments and growth. The announcement was made during the LEAP 23 Conference in Riyadh.
STV: Providing a wide range of financing options
STV was founded by Abdulrahman Tarabzouni in 2018 and the company, with close to USD 1 billion in committed capital, focuses on MENA-based startups. The company has investments in startups from across the region, including Tabby, Careem, Foodics and Trukker, many of which have enjoyed remarkable success.
According to the company, it has recognized the need for both equity and non-dilutive debt funding for tech companies, particularly in the growth stage. Through the new platform, the fund aims to stimulate regional tech ventures, by offering founders access to a wide range of funding solutions throughout their growth stages.
“A unique platform”
Tarabzouni, STV’s founder and CEO said of the platform, “We are excited to enter this new chapter at STV. Over the past five years, we have invested in great founders and their companies, many of which have grown to become champions of their sectors. We look to double down on our mission with the STV Total Growth, a unique debt and equity funding platform, that leverages our deep market access and compounding knowledge to fuel technology growth across the region.”
The platform will offer a range of funding instruments to drive growth-stage technology companies from across the region. In addition to debt and equity options, STV has developed ‘Tanami’, a Sharia-compliant non-dilutive venture debt instrument. Tanami is expected to play a key role in the development of the region’s tech ecosystem and finance many rapidly growing companies within the next three years, according to the company.
The growth of MENA startups
STV recently published a report, ‘From Startup to IPO: Unlocking A $100b+ Opportunity in MENA’, that projected that the MENA region would see 45 unicorns by 2030 and resented a USD 100 billion opportunity.
The firm projected in a recent report that the MENA region is poised to output 45 unicorns by 2030, presenting a $100b value opportunity and predicting the emergence of the following tech alpha, from MENA to the world. STV will continue backing technology ventures in their growth stage, while the number of institutional investors focusing on such a segment remains limited.