Raise capital from investors for a share of your company
Equity crowdfunding lets companies raise capital from multiple investors in exchange for company equity — no monthly repayment. Very suitable for startups and growth-stage companies needing large financing they can't repay from current cash flow. Per-round cap: SAR 20M.
20,000,000
SAR max
No monthly repayment (equity investment)
Tenor
3 to 6 months (full campaign)
Speed
Give up typically 10-30% of company equity
Cost
Determine your company valuation, the amount needed, and equity offered
Apply to a platform (Safqa Capital, Aard Capital, Kafaa Capital)
Platform evaluates company, business model, team, and potential
On approval, an investment campaign launches for 2-3 months
Investors contribute (typically from SAR 5,000) until the round closes
You receive the financing; investors become partners for their equity share
A sample. Diro instantly matches you with lenders suited to your business profile.
Maximum amount
20,000,000 SAR
Tenor
No monthly repayment (equity investment)
Cost structure
Give up typically 10-30% of company equity
Funding speed
3 to 6 months (full campaign)
Equity crowdfunding — CMA-licensed platforms connecting startups with retail investors for equity (not debt) financing. The company sells a defined ownership stake in exchange for funding, and investors become shareholders. This model is ideal for early-stage startups that cannot provide collateral for loans, and provides non-dilutive financing pressure on cashflow.
Licensed platforms: Manafa Capital is the leading equity-crowdfunding platform in Saudi Arabia, CMA-licensed since 2018. It funds startups in Seed and Series A stages with amounts ranging SAR 500K-10M. Funded sectors: technology, e-commerce, digital health, entertainment, education, fintech. Manafa is also listed in the SAMA sandbox for supply-chain financing.
Key notes: equity crowdfunding suits companies with scalable business models planning rapid expansion. Companies with steady revenue may be better off with debt financing instead of diluting ownership. When preparing a funding round, value the company realistically — inflated valuations make later rounds harder. Saudi startups also benefit from financing through Saudi Venture Capital Company (SVC), the government-backed VC fund. With the maturing startup ecosystem, equity crowdfunding in Saudi Arabia has become complementary to traditional VC rounds rather than a substitute. The 2024 CMA pilot of secondary-market trading for crowdfunding shares is a major upcoming change that will provide investor liquidity and reshape valuation dynamics.
Equity suits when: (1) you need large financing your current business can't repay monthly, (2) your company is in fast growth and cost of delay exceeds cost of dilution, (3) you want strategic advisors and investors, not just money. Debt suits stable companies with strong cash flows.
Valuation typically uses annual revenue multiples (3-10x for tech, 1-3x for traditional), annual profit multiples (5-15x), or other methods depending on sector. The platform helps you set a realistic, investor-convincing valuation.
Investors get equity shares — thus a share of future profits (dividends) and company value at sale or IPO. They can't individually withdraw investments — exits happen via selling shares to new investors or at a liquidity event (sale or IPO).
Licensed providers
Completely free
Instant comparison
35+ lenders
One application, offers from lenders matching your business profile
Start Now