Qatar attracts VC fund managers to Doha with its $1 billion ‘fund of funds’

cnbc.com:

The Qatar Investment Authority is leveraging its over-$500 billion in assets to attract venture capital firms to the hydrocarbon-rich state.

The sovereign wealth fund's $1-billion fund of funds program — which invests in both international and regional VC funds — is designed to bolster investments in areas such as technology and health care, as Qatar looks to diversify away from its dominant oil and gas industry.  

Now, it's accepted its first group of venture capital fund managers.

B Capital, a tech-focused firm led by Facebook co-founder Eduardo Saverin, is among the group of VCs set to launch in Doha, opening its first Middle East office in the Qatari capital. It joins Rasmal Ventures, Utopia Capital Management and Builders VC, which have also joined the program.

Raj Ganguly, co-CEO of B Capital, hailed the Gulf state's approach to artificial intelligence, and its support for the sector, as of particular interest.

«With all the sandboxes that have been created here in the GCC (Gulf Cooperation Council) to trial new types of AI, we think it's an incredibly exciting time,» Ganguly told CNBC at Web Summit Qatar in Doha on Monday. «We believe innovation can come from anywhere. We want to back founders from the GCC who have a global mindset.»

B Capital, which focuses on enterprise, fintech, health care and climate investments, has over $7 billion in assets under management and says it targets seed to late-stage growth technology investments.

Mohsin Pirzada, head of funds at QIA – a huge sovereign wealth fund with stakes in prize assets ranging from French football team Paris Saint-Germain to London's Heathrow Airport — told CNBC that the program has a dual investment mandate.

«Firstly, we seek strong commercial returns and