A group of bankers and financial experts will be examining the challenges facing investments in technology start-ups and the best international practices to evaluate investment opportunities of pre-revenue technology start-ups in a step that aims to increase awareness about the importance of investment in entrepreneurial projects within the financial ecosystem.
In collaborations with The Institute of Finance, the Business Incubators and Accelerators Company “BIAC”, one of the leading government companies specialized in the establishment, operation and management of business incubators and accelerators, will conduct a two-day training program at the headquarters of the Institute of Finance in Riyadh on May 2-3, 2018 to better understand and develop new solutions for the evaluation of innovative technology start-ups in the presence of financial professionals. The participants will be introduced to the key concepts of technology development, business start-up and investment appraisal.
The training program, which targets the financial sector and specialized investment institutions, will include an overview on the evolution of tech start-ups in the Saudi market as well as provide an in-depth understanding of how to evaluate financing and investment proposals in such companies while focusing on practical case studies through the valuation of existing technology companies.
This program is the second of three programs that have been tailor made to develop the capabilities and skills of workers in the investment sector and raise awareness about investment opportunities in the technical field, particularly in light of the funding gap, as the traditional methods that are currently being used by banks and financial companies to evaluate investment opportunities and financing applications are often based on guarantees and the financial register of the company without taking into consideration the project’s feasibility, technical worthiness and future growth prospects.
The current percentage of financing to SMEs does not exceed 5% of the total financing granted to all enterprises in the Saudi market. However, government plans and initiatives seek to increase this percentage to 20% in compliance with the Kingdom’s Vision 2030 that comprises ambitious programs and initiatives to support SMEs and establish several venture capital funds to finance them.
The training program was organized at a time when the current year has witnessed an increase in the volume of investment deals in tech start-ups due to the momentum that was gained by business incubators and accelerators and the government’s active contribution to support Saudi entrepreneurs. Additionally, the increase of investments in entrepreneurial projects, which consists of venture capital funds, individual investor’s networks and lending platforms also, had a rapid effect on the local market.