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FinTech startups, especially in the early stages of ideation, prototyping, MVP development, or even product-market fit, often need financial injections, mentoring, guidance, coworking spaces, incubation, and acceleration. Without these initiatives, it would be difficult to develop innovative solutions for the financial services industry. The role and impact of government programs and grants are immense. This article will explore the various programs and grants in KSA (Kingdom of Saudi Arabia) that help FinTech startups succeed and grow.
The National Technology Development Program (NTDP) by MICT has more than 20 initiatives for startups in different stages. For the purpose of this article, we’ll focus on the initiatives for early-stage startups. MVPLAP is a good start if a startup has an idea or prototype and wants to build their MVP (Minimum Viable Product). The program offers a non-refundable financial grant of SR150,000 to help build the startup’s MVP.
A second initiative is Tech Crew, which covers 50% of a Saudi tech employee’s basic salary in tech companies, up to SR25,000 per month for up to 2 technical employees for 18 months. The Boost Initiative is another program by NTDP for early-stage startups that have at least finished their MVP stage. There are two tracks for this: entrepreneur-in-residence and incubation, with a financial grant of SR7,500 to SR13,500 per month for 12 months to support tech entrepreneurs in building their experiences through incubation and help them establish their own company.
Saudi FinTech is doing a great job for the FinTech ecosystem in general and FinTech startups in particular.
The MAKEN Program by Saudi FinTech aims to empower entrepreneurs and startups in the fintech industry by providing subsidized support for technology, cloud, and cybersecurity. Makken extends a comprehensive range of subsidized services to enable early-stage fintech companies, including:
* Cloud infrastructure deployment for new FinTechs within 72 hours
* Cloud essentials monthly consumption and infrastructure management
* 24/7 various cybersecurity managed services offered by leading service providers
* Cybersecurity awareness workshops and training programs
The FinTech Accelerator is another program focused on accelerating the growth of FinTech startups through support services, workshops, coaching, and mentorship sessions. It spans over 4 months to help build the business model, prototype, and acquire customers.
The Center Of Digital Entrepreneurship (CODE) by MICT is another great place for early-stage FinTech startups. They provide many services such as incubation, mentorship, technical support, and even financial support, all of which are free as grants and perks. Besides the services CODE provides to FinTech startups, it offers programs designed to help startups in different stages. For example, the Tech Founders program equips startups with the best hands-on training at top universities around the world for about 2 months, covering the training, accommodation, and flights – all for free as a non-refundable grant. Another program by CODE for FinTech is the Tech Champions Program, which has an incubator track of 4 months and an accelerator track of 3 months. Both tracks provide mentorships, coworking spaces, training programs, the possibility of obtaining the MVPLAB Initiative (which supports startups with an amount of up to SR150 thousand), and access to investment deals.
MISK is also helping startups with three great programs ranging from idea to acceleration:
* SPARK: Helps entrepreneurs validate their ideas during the program and also helps them reshape their ideas.
* LUNCHPAD: Helps digital entrepreneurs come up with the right MVP for their solution. The program includes seminars, workshops, 1:1 mentorship, networking events, and meetups. Participants can test their hypotheses through different phases in this 10-week virtual program, which anyone can join from anywhere in KSA.
* MISK Accelerator: A 3-month zero-equity accelerator program empowering seed-stage startups.
FinTech startups should take advantage of government grants as much as possible. Why? Because these grants provide a much-needed money injection during the early, challenging days of startup life. They should also find the best incubators that provide coworking spaces and mentoring. Accelerators, as the name suggests, have really helped FinTech startups in the past and will continue to do so in the future. Founders should seek out the best ones, especially those that don’t take a large equity stake in return.
