Business Incubators and Accelerators: Planting the Seeds of Innovation (Riyadh Valley Company)

Summary

• Y Combinator, launched in 2005, was the first business accelerator in the world.p.5
• Accelerator programs typically provide training and support for a limited period of 3 to 6 months.p.2
• First-stage accelerator investment typically ranges from 20 thousand to 50 thousand dollars in exchange for an equity stake.p.4
• Saudi Arabia improved its rank in the entrepreneurship indicator in 2020 after ranking 41 in 2018.p.6
• The Badir program of King Abdulaziz City for Science and Technology was launched in 2007.p.8
• OneValley helped startups raise more than 600 million dollars since 2016.p.11
• Riyadh Valley Company was established in 2010 as the investment arm of King Saud University.p.12

Key insights

1. Y Combinator invested 20 thousand dollars in AirBnB, and Sequoia Capital invested in 2010 after only one year.p.5
2. Startups 500 partnered with Sanabil Investments to launch the Sanabil 500 MENA Seed Accelerator in Riyadh, with applications opened on 22 February 2021.p.8
3. Biac was established in 2016 and invested 100 thousand dollars in startups across various industries.p.8
4. Flat6Labs Jeddah, the first accelerator in Saudi Arabia, was founded in 2013 with support from sponsors such as Arabian Cement and IKEA Saudi Arabia.p.8
5. The InspireU program of Saudi Telecom Company runs for 4 to 6 months and targets early-stage digital and technology startups.p.9
6. In 2018, the Small and Medium Enterprises General Authority issued regulations governing incubators, accelerators and coworking spaces.p.6