Aramco, a leading global integrated energy and chemicals company, has announced a substantial increase in funding for its global venture capital arm, Aramco Ventures. The company is dedicating an additional $4 billion to Aramco Ventures, effectively doubling its capital from $3 billion to $7 billion.
This decision brings Aramco's total venture capital allocation to $7.5 billion, encompassing the $500 million venture capital fund Wa’ed Ventures, which concentrates on nurturing startups in the Kingdom of Saudi Arabia.
The move underscores the growing importance of Aramco's venture capital program in facilitating the emergence of innovative technologies. This expansion aims to create diversification opportunities for Aramco and foster collaborations with forward-thinking startups. The objective is to support the company's long-term strategy, emphasizing new energies, chemicals, transition materials, diversified industrial businesses, and digital technologies.
Ahmad Al Khowaiter, Aramco's Executive Vice President of Technology & Innovation, emphasized the pivotal role of innovation in addressing global challenges. Through Aramco Ventures, the company aims to assist ambitious pioneers in bringing their ideas to fruition. With an infusion of an additional $4 billion over the next four years, Aramco Ventures intends to provide vital financial support to propel groundbreaking solutions to new heights. This initiative will play a crucial role in advancing businesses at various developmental stages worldwide, aligning with Aramco's long-term objectives.
Before this increase in funding, Aramco Ventures managed three funds: a $500 million Digital/Industrial Fund, focusing on strategically important technologies for Aramco; the Prosperity7 Fund with $1 billion, investing in disruptive technology ventures beyond the energy sector; and the $1.5 billion Sustainability Fund, targeting startups with the potential to support Aramco's goal of achieving net-zero carbon emissions across its wholly-owned and operated assets by 2050.