Saudi’s STV Launches $100M Non-Dilutive Fund to Fuel Tech Startups

Saudi venture capital firm STV has closed its $100 million NICE Fund I, a pioneering financing vehicle designed to support growth-stage tech startups without requiring equity stakes.

Backed by SAB Invest’s Alternative Financing Fund, the National Technology Development Program (NTDP), and family offices, the fund introduces a Sharia-compliant structure to the region- blending non-dilutive capital with profit-sharing mechanisms. This allows founders to secure funding while retaining full ownership, addressing a critical pain point in emerging markets where equity dilution often stifles growth.

The fund’s NICE (Non-Dilutive Investment in Callable Equity) instrument aims to provide startups with flexible repayment terms tied to revenue milestones, offering an alternative to conventional venture capital. By aligning with Islamic finance principles, it looks to attract conservative investors seeking regular returns while adhering to ethical guidelines.

STV’s partnership with NTDP underscores the government’s strategy to accelerate ecosystem growth through public-private collaboration, mirroring models seen in Singapore. This approach not only channels capital into high-potential sectors like fintech and logistics but also builds institutional infrastructure to sustain innovation beyond short-term market cycles.

Deployments begin late 2025, targeting startups poised to scale across Saudi and regional markets.