The decision will increase Aramco Venture’s total investment allocation from $3 to $7 billion
Aramco, one of the world’s leading integrated energy and chemicals companies, has announced that it will allocate an additional $4 billion to its global venture capital arm, Aramco Ventures. This decision will spike the capital allotted to Aramco Ventures, increasing its total investment allocation from $3 billion to $7 billion.
Aramco Ventures is the company’s strategic investment platform that aims to support innovative start-ups and technologies in areas of business development that align with Aramco’s long-term strategy. These include new energies, chemicals, transition materials, diversified industrial businesses, and digital technologies.
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Aramco Future Plans
The company said that the increased funding will enable Aramco Ventures to finance game-changing innovations across a variety of industries and geographies and to foster collaborations with potential partners that can help advance Aramco‘s ambition to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned and operated assets by 2050.
Ahmad Al Khowaiter, Aramco Executive Vice President of Technology & Innovation, said: “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 long-term objectives.”
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Aramco Ventures Funds Types
The three funds that Aramco Ventures manages are as follows: a Digital/Industrial Fund, which invests in technologies of strategic importance to Aramco; the Prosperity7 Fund, which invests in disruptive technology ventures beyond the energy sector; and the Sustainability Fund, which invests in start-ups with the potential to support Aramco’s net-zero emissions goal. The company also has a $500 million venture capital fund, Wa’ed Ventures, that focuses on the start-up ecosystem in the Kingdom of Saudi Arabia.
Aramco Ventures has invested in several notable start-ups, such as Carbon Engineering, a Canadian company that captures carbon dioxide from the air and converts it into clean fuels; Cemvita Factory, a US-based biotechnology company that mimics photosynthesis to produce carbon-negative materials; and Seeq, a US-based software company that provides advanced analytics for industrial process data.
With the new capital allocation, Aramco Ventures aims to expand its portfolio and impact and position itself as a leading global venture capital player in the energy and technology sectors.
