The UAE-based venture capital firm BY Venture Partners announced the closing of its third fund (Fund III) at $60 million, bringing its total assets under management to over $200 million. The fund is primarily backed by the Dubai Future District Fund (DFDF), with participation from prominent institutional and private investors such as MultiLane, Transmed Capital, and the Idriss Family Office.
Investment strategy in AI technologies
The new fund aims to target startups classified as AI-native, operating from the pre-seed stage up to Series A. Investment will focus primarily on companies developing AI-powered solutions to improve enterprise workflows, with investments of up to $1 million allocated per startup.
The firm has already begun executing its strategy, having invested in 15 companies out of a target portfolio of 40, including companies such as PQ Shield, Cosyne, Isometric, Huspy, and Invisible. The firm maintains a broad scope of operations covering more than 16 international markets, with about two-thirds of the capital directed outside the MENA region, specifically toward North American and European markets.
Why this news matters
This trend reflects a fundamental shift in how capital flows into the tech sector; the focus is no longer just on companies that "use" AI as an additional tool, but on companies that are "built" around this technology as a core pillar. The fund also highlights Dubai's role as a bridge connecting innovators in the region to global markets, facilitating the transition of startups from the Middle East to the global stage from day one, in line with the accelerated pace of AI adoption in the GCC countries.
Supporting the ecosystem in Lebanon
In a move aimed at supporting technical recovery, the firm has been mandated to manage the Lebanese Angel Investors Network (LAIN), which works to connect Lebanese founders with expatriate investors. BY Venture Partners has pledged to reinvest 50% of its carried interest directly into supporting and rebuilding the startup ecosystem in Lebanon.
A hands-on experience approach
The firm adopts a "founders-first" approach, as all the founding partners (Ghaith Yafi, Abdallah Yafi, Rami Jisr, and Sohrab Jahanbani) are former entrepreneurs who successfully built and sold their own companies. This approach has contributed to achieving strong results, as the firm's previous funds have produced four unicorns, with a proven track record of navigating volatile market cycles.