BY Venture Partners Closes $60M Fund III to Back AI Startups
Dubai-based BY Venture Partners has closed its $60 million third fund, anchored by the Dubai Future District Fund, lifting assets under management above $200 million.
Dubai-based BY Venture Partners has closed its third fund, Fund III, at $60 million, pushing its total assets under management to more than $200 million. The vehicle is anchored by the Dubai Future District Fund (DFDF), with participation from MultiLane, Transmed Capital, the Idriss Family Office (KSA) and other institutional and private investors.
Focus on AI-native companies
Fund III will write cheques of up to $1 million, mainly at the Pre-Seed to Series A stages. It targets AI-native companies that rethink enterprise workflows and aim to scale globally from day one. So far the fund has made 15 investments out of a planned portfolio of 40, including PQ Shield, Cosyne, Isometric, Huspy and Invisible.
The firm invests in more than 16 markets, and about two-thirds of its capital goes outside MENA, mainly to North America and Europe. In its announcement, the firm cited a November 2025 McKinsey survey of the GCC, which found that 84% of organisations used AI in at least one business function, up from 62% in 2023.
"The focus of this fund is to back AI-native companies with global ambitions," said founding partner Ghaith Yafi, adding that the firm wants to attract innovative AI companies to the Middle East. DFDF's Nader Albastaki said the partnership will be measured by the flow of companies and founders between Dubai and international markets, in line with Dubai's Economic Agenda D33.
Lebanon commitment and track record
Separately, BY Venture Partners has won a mandate, backed by MITAI, to manage and operate the Lebanese Angel Investor Network (LAIN), which connects diaspora capital with early-stage Lebanese founders. The firm will reinvest 50% of its carried interest into rebuilding Lebanon's startup ecosystem.
All four partners, Ghaith Yafi, Abdallah Yafi, Rami Jisr and Sohrab Jahanbani, are repeat entrepreneurs who built and exited companies before turning investors. The firm reports a Founder Net Promoter Score of 87. It says Fund I, which had heavy exposure to Lebanon during its financial collapse, is still on course to return a strong multiple, while Fund II is performing strongly for its vintage. Together the two funds have produced four unicorns, and the firm says it has already returned meaningful capital to its LPs. Earlier portfolio companies include NymCard and Toters.
Apps worth a look
SUMO: the number puzzleTap the right tiles, add them up, hit the target. Easy to learn, hard to master. Free, for all ages.
Dialo: learn languages by speakingTalk to an AI conversation partner; every sentence comes back corrected and explained in your language. 9 languages, A1 to C2.
ediviewer: read EDI files like documentsOpen EDIFACT and X12 messages, see every segment explained, convert to JSON/XML, export PDF and Excel. Runs locally, no upload.
More from this day
See all →
Apple Tightens App Store Age Ratings for Dating and Location Apps
GIVA raises $100M from Multiples PE to expand jewellery business
