A Saudi Arabia-based family office, KBW Ventures, is significantly increasing its investments in growth-stage venture capital and AI-centred companies as private equity opportunities expand in the region. The move was detailed in a report published on 28 October 2025. Markets Group
Incoming Chief Investment Officer Ekta Tolani, who joined KBW Ventures in early 2024, disclosed that the firm has tilted its portfolio toward growth-stage firms and international expansion, while honing in on areas of proven commercial traction. “The goal has been to identify pockets of high growth and reallocate capital to where the opportunity truly lies,” she said in a statement.
The strategy comes amid a broader pattern: Saudi Arabia is strengthening its venture ecosystem through state-backed platforms such as Sanabil Investments, Saudi Venture Capital Co. (SVC) and Jada Fund of Funds, in parallel with new mega-project developments such as NEOM. Tolani noted that while most local family offices still favour public equity and real estate, KBW sees the period ahead as a rare window for venture and growth equity deployment.
Portfolio Focus and AI Emphasis
KBW Ventures is concentrating investments on sectors including business-to-business SaaS, gaming, fintech and artificial intelligence. The firm holds stakes in companies such as Turing, HerculesAI, Trifacta, Minerva and Signifyd. Tolani emphasised that each investment is assessed on whether the company truly uses proprietary data to gain competitive edge rather than simply labelling itself as “AI”. “Every pitch today claims an AI component. We assess whether it’s genuinely improving efficiency, accuracy or outcomes,” she added. Markets Group
According to data from PitchBook, global venture and growth equity funding reached approximately USD 480 billion through the third quarter of 2025, with AI-focused companies representing nearly one-third of deployed capital.
Strategic and Regional Implications
The increased activity by KBW represents a microcosm of a larger capital-shift trend in Saudi Arabia. Historically dominated by public markets and real estate, family offices are now repositioning toward private venture and growth-stage investments, especially those aligned with the Kingdom’s Vision 2030 objectives such as AI, fintech, clean tech, digital infrastructure and food security. Tolani pointed out this moment as a “rare window” where policy tailwinds, valuations and innovation converge.
For international investors and affected entrepreneurs, KBW’s shift signals growing capital availability in Saudi markets for technology-enabled companies, especially those with global ambition. It also means that local startups have more choice between regional investors and global capital.
Risks and Challenges to Execution
Despite the optimism, the strategy is not without its risks. Venture capital in Saudi Arabia remains immature compared with more established markets, and the scale of institutional deal-flow is still developing. Key challenges include building operational infrastructure, exit pathways and ecosystem maturity. Tolani acknowledged the need to deploy smart capital into scalable models rather than early product risk ventures. Markets Group
Valuation timing matters too: entry into growth-stage ventures requires disciplined diligence, especially as the global macro-environment remains volatile. Family offices may face a longer timeline to liquidity compared to public market alternatives, meaning patience and portfolio construction become critical.
Outlook
Over the next five years, KBW and similar investors believe that venture capital, AI and growth equity will transition from niche roles to central pillars of Saudi investment strategy. The belief is that the Kingdom is entering a defining investment cycle, where early movers may capture outsized returns. For growth-stage technology firms, this could mean increased funding availability, deeper regional support and integration with large national platforms.
As Tolani suggested, the confluence of policy support, valuation resets and technological adoption forms a backbone for accelerated growth. “We expect venture, AI and growth equity to move from the margins to the core of Saudi investment strategy,” she said. Markets Group
Conclusion
The move by KBW Ventures underscores the changing paradigm within Saudi wealth and investment circles: traditional asset classes such as real estate and public stocks are no longer the sole focus. The attention is shifting to high-growth, technology-enabled opportunities particularly those rooted in artificial intelligence and scalable business models. For the region, this marks a step toward building a more sophisticated, tech-driven economy and investment ecosystem.
