BY Venture Partners closes $60M Fund III to back AI-native startups
What's the deal? UAE-based BY Venture Partners has closed its third fund at $60 million to back AI-native startups from pre-seed to Series A. The fund is anchored by the Dubai Future District Fund (DFDF)Dealroom has a profile for this one. Try Dealroom →, with participation from MultiLane, Transmed Capital and the Idriss Family Office.
What's the endgame? Fund III will invest up to $1 million per company in startups using AI to reshape enterprise workflows. The firm has deployed 15 investments towards a planned 40-company portfolio, including PQ Shield, Cosyne, Isometric, Huspy and InvisibleDealroom has a profile for this one. Try Dealroom →.
The close lifts BY Venture Partners' total assets under management, including co-investment vehicles, to more than $200 million. Founded in 2015, the firm invests across more than 16 international markets, with two-thirds of its capital deployed outside MENA in North America and Europe.
Why now? The firm operates from a region adopting AI quickly. A McKinsey survey from November 2025 found 84% of GCC organisations used AI in at least one business function, up from 62% in 2023.
What's the endgame — part two? Beyond returns, the firm wants to connect international AI startups with the Middle East's tech ecosystem. "We are particularly excited about the opportunity to attract some of the world's most innovative AI companies into the Middle East," said founding partner Ghaith Yafi.
The signal: At $60 million, Fund III is modest beside recent AI vehicles — Reach CapitalDealroom has a profile for this one. Try Dealroom → closed a $265 million fund in August, and Accel's latest dedicated fund raised $800 million. But those funds differ in geography, stage and mandate, positioning BY's raise as a targeted early-stage pool bridging regional capital and global deal flow.
Read more: wamda.com
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