Aramco – one of the world’s leading integrated energy and chemicals companies – recently allocated an additional $4 billion to its global venture capital arm, Aramco Ventures. This will more than double the capital allotted to Aramco Ventures, increasing its total investment allocation from $3 billion to $7 billion.
It will take Aramco’s overall venture capital allocation to $7.5 billion, including the $500 million venture capital fund Wa’ed Ventures, which focuses on the start-up ecosystem in the Kingdom of Saudi Arabia. This decision reflects the growing significance of Aramco’s venture capital program in enabling the development of disruptive new technologies, creating diversification opportunities for Aramco, and paving the way for collaborations with innovative start-ups. And in doing so, it aims to help advance the company’s long-term strategy, including a focus on new energies, chemicals and transition materials, diversified industrial businesses, and digital technologies.
Before the new capital allocation, Aramco Ventures managed three funds. These are a Digital/Industrial Fund ($500 million) investing in technologies of strategic importance to Aramco; the Prosperity7 Fund ($1 billion) investing in disruptive technology ventures beyond the energy sector; and the Sustainability Fund ($1.5 billion) and invests in start-ups with the potential to support Aramco’s ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned and operated assets by 2050.
KEY QUOTE:
“Innovation is key to addressing some of the fundamental challenges facing the world today, including the energy transition. Through Aramco Ventures, we aim to support pioneers with big ambitions, and ultimately help bring their ideas to life. By injecting an additional $4 billion in funding over the next four years, we intend to provide the financial backing required to take game-changing solutions to the next level. This will provide crucial impetus to businesses at various stages of development around the world, while also contributing to Aramco’s own long-term objectives.”
– Ahmad Al Khowaiter, Aramco Executive Vice President of Technology & Innovation
