Investment strategy

SWFs’ tech hunger gives startups breathing space

Sovereign wealth funds are focusing more on direct investments, for entrepreneurs that means longer-term capital at an earlier stage.

Sovereign wealth funds have increasingly poured money into technology startups in recent years at earlier stages of the business cycle, and they have also been making such investments more directly. This has implications for entrepreneurs across the region. 

A growing number of large investors most notably Asian SWFs and Japan’s Softbank heavily backed by Saudi Arabian state capital have been sharply ramping up their involvement in early-stage tech deals in the past few years.

SWFs executed a record-high 63 deals across different stages of venture financing in 2018, according to data published by the International Forum of Sovereign Wealth Funds in May. That was...

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