European startups and scaleups are increasingly turning to Gulf countries for capital, as sovereign wealth funds and corporate VCs from the region significantly boost their investments in Europe. In 2023, Gulf investments in European startups reached $3 billion, a substantial increase from $627 million in 2018, according to Dealroom data. This trend highlights the growing importance of Gulf capital, particularly for growth-stage companies.
Aramco Ventures
Headquartered in Dhahran, Saudi Arabia, Aramco Ventures is the venture capital arm of Aramco, the state-owned oil giant. With a recent boost of $4 billion to its VC branch, bringing total investment capabilities to $7 billion by 2027, Aramco Ventures is poised to make a significant impact. The firm focuses on strategic investments across three main areas: sustainability, digital and industrial innovations, and new technologies through its Prosperity7 fund. Notable European investments include Carbon Clean Solutions and ANYbotics, underscoring its commitment to sustainability and tech advancements.
Mubadala Capital
Based in Abu Dhabi, UAE, Mubadala Capital is a subsidiary of the Mubadala Investment Company. Known for its diversified investment approach, Mubadala Capital manages assets across private equity, VC, and alternative solutions. The firm has been active in Europe, participating in 13 deals over the past two years. Noteworthy investments include fintech giant Klarna, micro-mobility company TIER, and financial management platform Juni. Mubadala’s strategic focus on healthcare and technology positions it as a key player in the European startup ecosystem.
Ventura Capital
Dubai-based Ventura Capital operates with an international footprint, having offices in Dubai, London, and Tokyo. The firm, which closed a $150 million fund in early 2022, is sector-agnostic and invests in companies from growth stages to public offerings. Over the past two years, Ventura Capital has participated in nine funding rounds in Europe, with notable investments in online education platform Coursera and music streaming service Spotify. This diverse portfolio highlights Ventura’s broad investment strategy and global reach.
Qatar Investment Authority
The sovereign wealth fund of Qatar, the Qatar Investment Authority (QIA), aims to diversify the country’s economy through strategic investments. Headquartered in Doha, QIA has been active in Europe, participating in six funding rounds over the past two years. Notable investments include urban farming company Infarm, enterprise software firm Celonis, and fintech unicorn Checkout.com. QIA’s diverse portfolio reflects its strategy of investing across various sectors, including technology, healthcare, and industry.
MetaVision Dubai
MetaVision, a Dubai-based VC fund, focuses on early-stage startups in the metaverse and Web3 sectors. The firm raised its first fund in 2022 and typically invests up to $100,000 per startup. Over the past two years, MetaVision has participated in six European funding rounds, backing companies like Kinetix, Ngrave, and Cathedral Studios. MetaVision’s targeted investment strategy aims to support the burgeoning fields of virtual reality and blockchain technologies, positioning it at the forefront of digital innovation.
Investcorp
Manama-based Investcorp, a well-established investment firm, spans multiple strategies, including private equity, real estate, infrastructure, and credit management. Investcorp has raised significant funds, such as a $750 million climate fund, and focuses on mid-sized B2B businesses with at least $10 million in revenue. Over the past two years, Investcorp has participated in six European funding rounds, with notable investments in Terra Quantum, TruKKer, and Fleetmatics. The firm’s commitment to European tech businesses underscores its strategic investment approach.
Chimera Capital
Abu Dhabi’s Chimera Capital, part of a business conglomerate led by Sheikh Tahnoun bin Zayed Al Nahyan, has significantly ramped up its investment activities. The firm closed a $10 billion VC fund co-managed with Alpha Wave Global in 2022 and established a subsidiary, Lunate, to manage a $50 billion fund. Chimera Capital has participated in four European funding rounds in the past two years, investing in companies like CMR Surgical and Neat Burger. Its sector-agnostic approach and substantial investment capacity make Chimera a formidable player in the VC landscape.
The surge in investments from Gulf countries into European startups marks a significant shift in global venture capital flows. With sovereign wealth funds and corporate VCs from the Gulf region injecting substantial capital, particularly into growth-stage companies, European startups are finding new and robust sources of funding. Investors like Aramco Ventures, Mubadala Capital, and others are driving innovation and sustainability, positioning themselves as key players in the European tech ecosystem. This trend not only diversifies the investor base for European startups but also strengthens ties between Europe and the Gulf region, fostering cross-border collaboration and economic growth.
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