Dubai-based global venture capital firm BY Venture Partners has closed its third fund, raising $60 million. The firm has also opened a new office in Portugal.

The fund is backed by Dubai Future District Fund (DFDF), along with other investors, including Multi Lane, Transmed Capital and the Idriss Family Office in Saudi Arabia. With this new fund, BY Venture Partners’ total assets under management have grown to more than $200 million.

Although the firm is based in the Middle East, it invests in startups across more than 16 markets worldwide. Around two-thirds of its investment capital goes to companies in North America and Europe.

Fund III will mainly invest up to $1 million in AI-focused startups at the pre-seed, seed and Series A stages. The firm is looking for companies using AI to improve business processes and build products that can grow internationally from the start.

The fund has already invested in 15 startups and plans to build a portfolio of 40 companies. Its investments include PQ Shield, Cosyne, Isometric, Huspy and Invisible.

According to Ghaith Yafi, Founding Partner at BY Venture Partners. “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.”

“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.

BY Venture Partners has expanded into Europe by opening a new office in Lisbon, Portugal, and hiring two local investment professionals.