ACCESS TO FUNDING
FIGURE 6. SOURCE OF TECH STARTUP FUNDING
Aside from angel networks, tech startups in Saudi Arabia remain mainly dependent on non-equity funding, whereas over half depend on personal savings (56%). Saudi Arabian tech startups are not leveraging their access to equity funding and approximately one out of every ten startups are dependent on non-equity sources, such as competitions (11%) and bank loans (11%). When it comes to equity funding, one fourth are angel networks, which is by far the most popular venue for financing (24%). Meanwhile, one out of every ten startups access accelerators (11%) as a source of equity funding. These findings reflect, first, the challenge of raising equity in Saudi Arabia and, second, a possible cultural aspect of being accustomed and more familiar with non-equity sources. This is a clear market opportunity for both accelerators and venture capital funds.