Saudi Backlash Threatens U.S. Startups

The kingdom is now the largest single investor for U.S. startups, with stakes in Uber, WeWork and Magic Leap

Turkish officials say a team of alleged Saudi assassins apprehended and likely killed a Saudi journalist in Istanbul. The Saudis have denied any involvement but Jamal Khashoggi has not been seen since he entered the Saudi Consulate on Oct.2. Photo: Getty Images

Eliot Brown and

Greg Bensinger

Updated Oct. 16, 2018 1:50 p.m. ET

As international backlash grows over Saudi Arabia’s alleged involvement in the possible murder of a journalist, Silicon Valley faces a potentially unsettling fact: The kingdom is now the largest single funding source for U.S. startups.

Crown Prince Mohammed bin Salman has directed at least $11 billion of Saudi money into U.S. startups since mid-2016, either directly or through SoftBank Group Corp.’s $92 billion tech-focused Vision Fund, to which the Saudis committed $45 billion, according to a Wall Street Journal estimate...