Aramco, Saudi Arabia’s prominent global energy and chemicals company, has decided to increase its investment in Aramco Ventures, its global venture capital arm, by an additional $4 billion. This move will more than double the capital allocated to Aramco Ventures, raising its total investment allocation from $3 billion to $7 billion.
With this increase, Aramco’s overall venture capital allocation will reach $7.5 billion, which includes the $500 million venture capital fund Wa’ed Ventures. Wa’ed Ventures focuses on supporting the startup ecosystem in the Kingdom of Saudi Arabia.
We announce the expansion of our global venture capital program @Aramco_Ventures with the aim to continue investing in innovation across industries
Learn more [https://t.co/uXoKLZ9SnC]#aramco pic.twitter.com/nMO3NAzizu
— aramco (@aramco) January 17, 2024
Aramco’s venture capital program
This decision reflects the growing importance of Aramco’s venture capital program in driving the development of disruptive technologies, creating diversification opportunities, and fostering collaborations with innovative startups. By doing so, Aramco aims to advance its long-term strategy, which encompasses new energies, chemicals, transition materials, diversified industrial businesses, and digital technologies.
Harnessing innovation for global challenge
Ahmad Al Khowaiter, Aramco’s executive vice president of Technology & Innovation, highlighted the significance of innovation in addressing global challenges, particularly the energy transition. Through Aramco Ventures, the company aims to support ambitious pioneers and bring their ideas to fruition. By injecting an additional $4 billion in funding over the next four years, Aramco intends to provide the necessary financial backing to propel game-changing solutions to new heights. This will provide essential momentum to businesses at various stages of development worldwide, while also contributing to Aramco’s long-term objectives.
Investing in strategic technologies
Before the recent capital allocation, Aramco Ventures managed three funds. These include the Digital/Industrial Fund, which had $500 million and invested in technologies of strategic importance to Aramco. The Prosperity7 Fund, with $1 billion, focused on disruptive technology ventures beyond the energy sector. Lastly, the Sustainability Fund, which had $1.5 billion, invested in startups with the potential to support Aramco’s goal of achieving net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned and operated assets by 2050.
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