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Qatar Investment Authority has announced plans to launch the country’s first venture capital fund of funds program, which will invest more than $1 billion in international and regional venture capital funds.
The sovereign wealth fund, estimated to be worth around $475 billion to $500 billion, also signed a deal to supply South African chemical and energy company Sasol with renewable energy, including the world’s largest oxygen production facility.
According to QIA, the two main objectives of the VC Fund of Funds program are to generate market-level commercial returns as part of its mission to generate sustainable long-term returns for Qatar, and to support the country’s tertiary national development. It is to support the strategy. It aims to increase the number of local startups and increase the availability of VC funding to local companies.
The program aims to attract international VC funds and entrepreneurs to Qatar and the Gulf region, prioritizing not only healthcare but also technology sectors such as fintech and edtech. Mainly invest indirectly through other VC funds. However, it will be able to make targeted co-investments with participating funds, according to the announcement. This program only invests in VC funds and does not invest in private equity, bonds, or other funds.
“Creating a well-connected startup ecosystem network in Qatar will diversify the country’s economic base in the long term,” Mansour Ebrahim Al-Mahmoud, CEO of QIA, said in a release. “Currently, Qatar does not have a dedicated capital pool,” he said. Qatar is for companies that have gone beyond seed funding and are ready for Series A, B, and C funding rounds. “QIA launched this program to make it easier for innovative companies to access funding and support from VC funds, expanding their business expansion and markets in Qatar, across the GCC, and ultimately into the international arena. This will enable us to expand our presence in
Managers seeking to raise capital under the program will need a solid track record, including consistently strong commercial performance, the sovereign wealth fund said. They will also need to demonstrate their commitment to Qatar and be able to play an active role in the region’s venture capital and start-up networks. Initiatives that may be required include establishing a presence in Qatar, emphasizing organic expansion plans in the region, and establishing a senior-level presence in the country.
QIA added that details regarding the fund launch will be revealed “in due course”.
QIA also signed three long-term power purchase agreements with Air Liquide Large Industries South Africa and Sasol South Africa to supply 330 MW of renewable energy to Sasol’s site in Secunda, South Africa. Announced.
The electricity will be generated by three wind projects owned by the joint venture in South Africa’s Eastern Cape province and are expected to be operational by 2026. The contract is the first greenfield project between Enel Group’s renewable energy subsidiary Enel Green Power and QIA. Since the two companies entered into a joint venture partnership in early 2021 to finance, build and operate renewable power plants in sub-Saharan Africa.
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Tags: Air Liquide, Fund of Funds, Mansour Ebrahim AlMahmoud, National Development Strategy, Qatar Investment Authority, QIA, Renewable Energy, Sasol, South Africa, Sovereign Wealth Fund, Venture Capital
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