Saudi Arabia’s technology start-up HyperSpace has raised $55 million in a new funding round as the company aims to expand its footprint globally and boost its existing offerings.

The new round, which is a mixture of equity and debt financing, was led by New York-based venture capital fund Galaxy Interactive. It also had the participation of Saudi entertainment initiative Riyadh Season, Sega Ventures and Apis Venture Partners.

Founded in January 2021, Riyadh-headquartered HyperSpace is a multi-brand entertainment attractions developer that develops parks and proprietary technology to shape the future of physical-to-digital experiences.

The company’s debut entertainment attraction, AYA, is located at Wafi Mall in Dubai. It is a digital immersive experience consisting of 12 zones across 40,000 square feet, and it has sold more than 480,000 tickets in its first nine months of operation, the company said.

“This investment validates our vision to build the future of physical-to-digital entertainment experiences,” said Alexander Heller, HyperSpace’s co-founder and chief executive.

“With the support of our investors, we will continue to innovate and expand our reach, bringing our unique attractions to new audiences around the world, while building generational brands and IP [intellectual property].”

HyperSpace said it plans to open two new larger parks in the coming six months: House of Hype at Riyadh Boulevard and House of Hype at Dubai Mall.

It will also use the injection of new capital to further expand internationally, including entering the US market.

House of Hype, which will be opened in the kingdom next month, aims to be the “world's most innovative” and engaging entertainment park, erasing the line between physical and digital worlds entirely, HyperSpace said.

The business will also invest in its proprietary technology platform, expand further into artificial intelligence-driven applications and invest in IP development as it further expands.

“HyperSpace is at the forefront of a new era of entertainment … the company’s team of world-class creatives and technologists is building the most innovative and engaging entertainment experiences on the planet,” said Sam Englebardt, co-founder and managing partner of Galaxy Interactive.

Start-ups in the wider Middle East and North Africa raised $643 million in late-stage funding during the first half of this year, outpacing the global average, start-up data platform Magnitt said in its latest industry report in September.

Saudi Arabia led the Mena region in attracting the highest number of venture capital investment deals for its start-ups in the first quarter of 2023, according to Magnitt.

It also led the region in terms in terms of deal value.

The kingdom was the most funded for start-ups in the three months to March, attracting $359 million out of the total $818 million capital for the Mena region, the report said.

Overall, venture capital funding for start-ups in Saudi Arabia rose by 72 per cent annually to $987 million from 144 deals in 2022, Magnitt data showed.