US venture firm picks Doha for first office outside Bay Area

US venture capital firm Activate Capital has chosen Doha as its first international office outside the Bay Area, signaling Qatar's intention to become a hub for tech and startup investors. The $3 billion Fund of Funds platform, backed by Qatar Investment Authority (QIA), aims to attract venture firms and their portfolio companies to the region.

QIA's undisclosed contribution to Activate's deal will enable the San Francisco-based growth equity firm to bring its portfolio companies into Qatar. Those businesses operate in sectors such as energy, space, supply chain resilience, and climate adaptation. Activate joins other venture investors, including B Capital, Founders Circle, and Liberty City Ventures, in QIA's program in Doha.

Qatar has welcomed firms like JPMorgan and Goldman Sachs to increase operations in the country through partnerships with QIA. QIA's strategy focuses on developing the local economy and gaining access to emerging managers with the potential for outsize returns. The venture capital program aims to create a venture capital and entrepreneurial scene in Doha, helping the country generate more value from research and innovation.

QIA's head of funds, Mohsin Pirzada, emphasized that the program is commercially driven and focused on making money. Managers are held to development goals tied to Qatar's national strategy. Doha's strategic location as a four-hour flight from a population of 2 billion makes it an attractive gateway market. Despite challenges such as the Iran war, decision-making for the Doha office remained on schedule.

Activate's team will seek deals in Qatar and across the Global South, and will direct portfolio companies toward the region's cheaper energy and better compute access. QIA's involvement also helps Activate access competitive deals. Managers from abroad are learning the dress code and investing more in the country than they initially planned.

Qatar Investment Authority maintains its appetite for investment during the war, with the UAE and Saudi Arabia dominating venture funding in the region.