Saudi Venture Capital Firms Bet on M&A as Listings Get Tougher

Saudi Arabian venture capital firms expect more mergers and acquisitions in the startup space, as stock market weakness and higher valuation scrutiny make initial public offerings less appealing.

Investors want exposure to fast-growing companies, but without the volatility that comes with public markets, said Abdullah Altamami, founder and chief executive officer of Merak Capital. “Buyers are more interested in companies before they go public, because once they go public, they’re more expensive.”