BY Venture Partners Fund III has closed at $60 million, marking a new milestone for the Dubai-based venture capital firm as it expands its global investment strategy for AI-native startups. Anchored by the Dubai Future District Fund, the new fund will support early-stage technology companies worldwide, while the opening of a European office in Lisbon strengthens the firm’s presence in Europe’s growing AI and deep-tech ecosystem.
Onfido and Invisible Technologies early backer BY Venture Partners closes $60M Fund III to back the next wave of AI Native entrepreneurs globally
- Anchored by the Dubai Future District Fund (DFDF), firm expands total AUM to $200M
- BY Venture Partners launches its European office in Lisbon
- The firm backed EU-based Onfido, SalesApe, PQShield and Huspy from Fund I and Fund II
BY Venture Partners, a global early-stage venture capital firm headquartered in Dubai, today announced the successful $60 million close of its third vehicle, Fund III. The fund is anchored by the Dubai Future District Fund (DFDF), with participation from established regional institutionals, corporate venture arms, and prominent family offices – including Multi Lane, Transmed Capital, and the Idriss Family Office (KSA). Fund III expands BY Venture Partners’ total Assets Under Management (AUM) to over $200 million.
The Fund Targets AI-Native Startups Worldwide
Empowering AI-Native Founders from a Regional Powerhouse
Fund III will invest primarily up to $1m at the Pre-Seed to Series A stages into AI-native companies that reimagine enterprise workflows and scale globally from day one.
While anchored in the Middle East, BY Venture Partners operates with a global mandate. The firm invests across more than 16 international markets, with two-thirds of its capital deployed outside the MENA region across North America and Europe. Early momentum for Fund III is already underway, with 15 investments deployed to date out of a planned 40-company portfolio, including PQShield, Cosyne, Isometric, Huspy and Invisible.
“We are thrilled to officially announce Fund III and the launch of our European office in Lisbon, Portugal,” said Ghaith Yafi, Founding Partner at BY Venture Partners. “This fund will back AI-native companies with global ambitions. We are particularly excited to invest more across Europe, where hubs such as Madrid, London, Paris and Berlin are driving rapid advances in AI-native software. Our thesis is designed to generate strong, long-term returns for our partners, and we’re incredibly excited about the opportunities ahead with this new fund.”
BY Venture Partners Fund III Strengthens European Presence with Lisbon Office
Deeper Regional Commitment to Europe
Building on its track record of backing high-growth European tech ventures, including early investments in Onfido, PQShield, and Huspy, BY Venture Partners has officially established its European footprint with a new office in Lisbon and two key local investment hires.
“Europe is producing some of the world’s most formidable technical talent, but European founders often face a barrier when bridging the gap to international capital and global commercial scale,” said Sohrab Jahanbani, Partner at BY Venture Partners. “Having backed category leaders like Onfido, PQShield, and Huspy from our earlier funds, double-downing on Europe with our new Lisbon hub is a natural evolution. Our goal is to give ambitious European founders direct access to global networks, cross-border deployment opportunities, and an operator-led team that knows how to build across international markets.”
“Lisbon and the broader Iberian ecosystem have transformed from emerging regional hubs into serious launching pads for world-class AI and deep-tech innovation,” added Abdallah Yafi at BY Venture Partners. “By combining a local presence with BYVP’s global reach across the Middle East and North America, we are uniquely positioned to give Iberian and European founders the capital, operational support, and global commercial exposure needed to compete and win on the international stage.”
Built by Founders, for Founders
BY sets itself apart through its operator-first DNA: all four partners – Ghaith Yafi, Abdallah Yafi, Rami Jisr and Sohrab Jahanbani – are repeat entrepreneurs who built and exited businesses before joining forces as investors. This hands-on, founder-centric approach has earned BY Venture Partners an industry-leading Founder Net Promoter Score of 87.
BY’s track record has been built across more than one market cycle. Fund I and II have produced four unicorns alongside a growing group of companies now valued in the hundreds of millions, and the firm has already returned meaningful capital to its LPs.
With Fund III, BY Venture Partners continues to leverage its global-first, AI-first network to give early-stage founders the operational edge, capital, and global connectivity required to build market-defining technology platforms.
