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| Anadolu Agency via Getty Images |
Saudi Arabia is in the midst of a crackdown on alleged corruption, and its
dragnet has caught one of the tech world's most important investors: the
country has arrested Prince al-Waleed bin Talal over money
laundering charges. He has major stakes in satellite TV providers and in recent
years has been one of the largest individual investors in a number of
well-known tech giants, including Apple and Lyft. The royal is particularly
important to Twitter's fate. He poured $300 million into the social network in
2011, and his stake is second only to that of Twitter co-founder Ev Williams --
even CEO Jack Dorsey has a smaller financial commitment.
Whether or not the charges are valid isn't clear. They're coming
mere hours after Saudi Arabia formed an anti-corruption agency led by crown
Prince Mohammed bin Salman, who hasn't made a secret of wanting to consolidate
power before his aging father King Salman leaves the throne. Prince al-Waleed's
father had opposed Prince Mohammed's rise to power. Corruption has been an
issue, however, and Saudi Arabia wants to eliminate as much of it as possible
as it institutes economic reforms meant to reduce its dependence on oil by
2030. It's been making huge investments in tech, including Uber's ridesharing and Virgin's space tourism.
Either way, the arrest could have a significant effect on tech
investments. Prince al-Waleed's existing stakes won't necessarily dry up, but
it's safe to say he won't be investing more if he's convicted. And that, in
turn, dries up a significant source of funding for the tech industry. Promising
startups and cash-strapped incumbents will have a harder time raising the cash
they need to stay afloat.
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