BY Venture Partners Launches $60 Million AI Fund
The firm is targeting early-stage enterprise AI startups with up to $1 million in funding per company.
Updated on Oct. 29, 2026 in Startups
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BY Venture Partners closed its third venture capital fund at $60 million to focus on AI-native enterprise startups. The firm, which manages over $200 million in total assets, has also taken over management of the Lebanese Angel Investor Network.
Why it matters
The firm is targeting the growing enterprise AI market while simultaneously attempting to rebuild the Lebanese startup ecosystem through a commitment to reinvest half of its carried interest.
BY Venture Partners closed its $60 million fund, pushing total assets under management above $200 million. The firm currently operates across 16 markets and plans to scale its portfolio from 15 current investments to a total of 40 startups.
The players
BY Venture Partners
A Dubai-based venture capital firm managing over $200 million in assets with operations across 16 markets.
Dubai Future District Fund
The anchor investor for the new $60 million venture capital fund.
Lebanese Angel Investor Network
A network now under the management of BY Venture Partners to facilitate connections between diaspora investors and local Lebanese founders.
The details
The firm deploys up to $1 million per startup, targeting the Pre-Seed to Series A stages for AI-native companies building enterprise workflows. While headquartered in Dubai, the firm balances global reach with local impact, noting that two-thirds of its capital is currently deployed outside the MENA region. The management mandate for the Lebanese Angel Investor Network will bridge local founders with diaspora investors.
Timeline
October 29, 2026: BY Venture Partners announced the closure of its third fund.
November 2025: A McKinsey survey reported 84% of organizations utilized AI.
Market Landscape
BY Venture Partners is centering its strategy on the high demand for enterprise-grade artificial intelligence solutions. This move aligns with the trend identified by a November 2025 McKinsey survey, which found that 84% of organizations are already actively utilizing AI technologies.
Founders seeking growth capital should note the firm's specific $1 million ticket size for Pre-Seed to Series A AI-native projects. Operators should track how the firm balances its mandate to reinvest 50% of carried interest into Lebanon against its majority capital deployment outside the MENA region.
The takeaway
The firm provides a model for how investors can blend profit-seeking in enterprise AI with localized ecosystem development. Owners should monitor whether the 50% carried interest reinvestment mandate effectively strengthens the Lebanese pipeline compared to traditional venture-only approaches.
Further reading
For more analysis on venture capital trends, visit our Startups section.
Source note: This article includes information reported by Wamda.com 4 Sale.
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