Disrupt.com invests $100M in AI startups from Dubai

Dubai-based venture builder Disrupt.com is set to invest $100 million in artificial intelligence (AI) startups, focusing on the intersection of Web3 and other industries, potentially commercialising emerging AI technology.

This investment aims to support AI startups developing solutions for cybersecurity, Web3, automotive technology, and the retail sector.

The founders of Disrupt.com previously created Cloudways, a cloud solutions provider acquired by Digital Ocean Holdings for $350 million in 2022.

This new funding round follows a period of decline in venture capital funding in the Middle East and North Africa (MENA) region, where startups secured $2.3 billion in funding in 2024, a 42% decrease from 2023.

Despite this downturn, the United Arab Emirates (UAE) remained the largest VC market in the MENA region, with local companies raising $1.1 billion across 207 deals last year.

Disrupt.com employs a three-pronged approach: building startups from scratch, co-building ventures with external founders, and strategically investing in early-stage companies.

Their "CoBuild" model allows them to act as fractional co-founders, providing engineering, market strategy, and operations teams.

The $100 million commitment will target AI, cybersecurity, Web 3.0, automotive technology, and retail innovation, with a focus on pre-seed to Series A stage startups showing strong growth potential and clear paths to profitability.

Disrupt.com has already invested over $40 million in various companies and has a team of over 650 professionals to provide technical and operational assistance.

"Now is the time to be doubling down on our experience, financial investment and commitment required to help build the next wave of startups that will shape the future of the world as we know it," stated Aaqib Gadit, Founding Partner of Disrupt.com.

Looking beyond emerging markets, US venture capital backing of AI companies has seen a surge.

EY reported a 57% increase in AI venture deals in the fourth quarter, with the four largest deals totaling $26.6 billion.

EY anticipates that investment dollars will continue to flow into the AI space, potentially capturing 45% of all VC funding in 2025.