Dubai-based BY Venture Partners Closes $60 Million Fund III to Back Global AI Startups

Dubai-based venture capital firm will invest up to $1 million per startup, targeting AI-native companies from Pre-Seed to Series A across MENA and international markets.

Dubai, UAE: BY Venture Partners, a global early-stage venture capital firm headquartered in Dubai, has closed its third investment fund at $60 million, bringing its total assets under management (AUM) to more than $200 million.

The fund is anchored by the Dubai Future District Fund (DFDF), with participation from MultiLane, Transmed Capital, the Idriss Family Office in Saudi Arabia, and other institutional and private investors.

Fund III will primarily invest up to $1 million per startup at the Pre-Seed to Series A stages, focusing on AI-native companies developing innovative solutions for enterprise workflows and building technology businesses with global ambitions.

Fund targets AI-native startups

BY Venture Partners plans to build a portfolio of 40 companies through Fund III, with 15 investments already completed. These include PQ Shield, Cosyne, Isometric, Huspy and Invisible.

The firm operates across more than 16 markets, with approximately two-thirds of its capital deployed outside the Middle East and North Africa (MENA), primarily in North America and Europe.

According to McKinsey’s November 2025 GCC survey, 84% of organisations in the Gulf Cooperation Council (GCC) used AI in at least one business function, up from 62% in 2023. This growing adoption provides a backdrop for the fund’s focus on AI-driven enterprise solutions.

“We are thrilled to officially announce Fund III today,” said Ghaith Yafi, Founding Partner at BY Venture Partners. He said the fund aims to back AI-native companies with global ambitions and attract innovative AI businesses to the Middle East while connecting them with the region’s expanding technology ecosystem.

DFDF anchors the fund

The participation of DFDF reinforces the fund’s strategy of connecting regional capital with international technology opportunities and supporting Dubai’s ambitions to strengthen its position as a global technology hub.

“We committed to Fund III because BY's model works in both directions. It brings global AI-native companies into Dubai and takes founders from this region into international markets,” said Nader Albastaki, Managing Director of DFDF.

He added that the partnership would be measured by the movement of companies and founders across these markets, aligning with Dubai’s Economic Agenda D33.

MultiLane Founder and CEO Fadi Daou also expressed support for the fund, citing its focus on backing emerging AI-first startups and its alignment with his own experience as an entrepreneur and ecosystem builder.

BY Venture Partners to manage Lebanese Angel Investor Network

Alongside the fund's close, BY Venture Partners has secured a mandate to manage and operate the Lebanese Angel Investor Network (LAIN), an initiative backed by MITAI.

The network aims to connect Lebanese founders with investors from the diaspora, creating a more structured pipeline for early-stage funding and supporting the development of Lebanon’s startup ecosystem.

As part of its commitment to rebuilding the ecosystem, BY Venture Partners has pledged to reinvest 50% of its carried interest directly into supporting Lebanese startups.

Founder-led investment approach

BY Venture Partners was founded by Ghaith Yafi, Abdallah Yafi, Rami Jisr and Sohrab Jahanbani, all of whom are repeat entrepreneurs who built and exited businesses before becoming investors.

The firm says its operator-led approach has helped it develop a founder-centric investment model, reflected in a Founder Net Promoter Score of 87.

Its earlier funds have navigated challenging market conditions, including Lebanon’s financial collapse, while continuing to support portfolio companies. According to the firm, Funds I and II have collectively produced four unicorns, with two from each fund, alongside other companies valued in the hundreds of millions of dollars. The firm has also returned capital to its limited partners (LPs).

With Fund III, BY Venture Partners aims to expand its investments in AI-native businesses, connect international founders with opportunities in the Middle East, and support regional startups seeking to scale into global markets.