Phaze Ventures Launches Two AI Funds Targeting $75 Million

Oman-based Phaze Ventures has launched two venture capital funds targeting more than $75 million combined. The firm says it has already secured over $40 million in investor commitments and is in talks to grow the platform to the full target.

Two vehicles, two mandates

Phaze Ventures Fund II is anchored by ITHCA Group, a subsidiary of Oman Investment Authority, along with Ominvest and Oman LNG Development Foundation. It continues the firm's global investment mandate in artificial intelligence and deeptech. The second vehicle, Phaze Ventures Oman Fund, is anchored by Future Fund Oman and creates a dedicated pool of capital for homegrown, AI-enabled businesses.

The announcement comes as Oman builds the International Financial Centre of Oman, a new hub for international companies and investors.

Founded in 2018 by Abdullah Al Shaksy, Mohammed Al Wahaibi and Masoud Al Rawahi, Phaze Ventures backs early-stage AI and deeptech companies, mainly in the GCC and North America. It has team members in Muscat, Dubai and Riyadh and manages capital for more than 50 investors, including sovereign entities, listed companies, family offices and business families across Oman, Saudi Arabia, Bahrain, India and beyond.

First investments

The funds have made 10 investments so far, including Arabic.AI, Sully.ai, Andromeda Surgical, Boardy.ai and Metal. Co-investors include a16z, 8VC, Standard Capital, Y Combinator and Baidu Ventures. Phaze backed Andromeda Surgical before its $15 million Series A led by Standard Capital, and invested in Metal's seed round alongside Y Combinator and a16z.

"AI is the most disruptive technology shift of our generation," said Abdullah Al Shaksy, co-founder and CEO. He argued that the Gulf cannot limit its role to investing in hyperscalers, data centres and public markets, and must back founders early.