BY Venture Partners closes $60M Fund III, opens Lisbon office to expand European investment

Fund III details and focus

BY Venture Partners has closed its third fund, Fund III, at $60 million. The fund is anchored by Dubai Future District Fund (DFDF), with additional participation from Multi Lane, Transmed Capital, and Idriss Family Office (KSA). This brings the firm’s total assets under management (AUM) to over $200 million.

Fund III will target AI-native companies at the Pre-Seed to Series A stages, with ticket sizes of up to $1 million per investment. The firm has already deployed capital in 15 companies under the new fund, out of a planned portfolio of 40 startups. Notable investments include PQ Shield, Cosyne, Isometric, Huspy, and Invisible.

The firm operates across more than 16 international markets, with two-thirds of its capital deployed outside the Middle East and North Africa (MENA) region, primarily in North America and Europe.

Expansion into Europe

BY Venture Partners has opened a new office in Lisbon to strengthen its presence in Europe. The move is part of a broader strategy to deepen its investment footprint in the region, where it already deploys a significant portion of its capital.

The Lisbon office will be staffed by two locally hired investment professionals, signaling the firm’s commitment to building on-the-ground expertise in Europe. This expansion follows the firm’s existing operations in cities like London, Madrid, Paris, and Berlin.

Founding team’s background

The founding partners of BY Venture Partners—Ghaith Yafi, Abdallah Yafi, Rami Jisr, and Sohrab Jahanbani—are repeat entrepreneurs with prior exits. Their experience spans building, scaling, and exiting businesses before transitioning into venture capital.

The firm’s earlier funds, Fund I and II, have produced four unicorns and returned meaningful capital to limited partners (LPs), underscoring its track record in early-stage investing.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

BY Venture Partners’ $60 million Fund III signals growing investor confidence in early-stage, AI-native startups across Europe and North America. For founders, this expansion into Lisbon means another资本 source competing for high-potential Pre-Seed and Series A rounds in Europe—particularly in AI-driven enterprise software and deep tech. The firm’s track record of producing unicorns and returning capital to LPs may also raise the bar for pitch quality and traction expectations. Operators should note the increasing globalization of MENA-based VCs, which could shift dynamics in fundraising beyond regional borders.

Key takeaways

• Founders in AI-native sectors, especially in Europe, now have an additional early-stage investor with a global mandate and local Lisbon presence.
• The $60 million fund’s focus on Pre-Seed to Series A stages could intensify competition for high-quality startups in this segment.
• BY Venture Partners’ expansion reflects broader trends of MENA-based VCs diversifying geographically, potentially changing fundraising strategies for startups in both MENA and Europe.

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