Propeller launches $50 million fund for AI infrastructure
New fund targets AI infrastructure startups bridging MENA and US markets
#Saudi #venturecapital - Jordan-founded venture capital firm Propeller has launched a $50 million Fund III to invest in early-stage startups building AI infrastructure and software across the United States and Middle East and North Africa (MENA). The fund will focus exclusively on horizontal AI infrastructure and AI-native applications from silicon-adjacent technologies to enterprise workflows, backing founders with global ambitions and cross-border growth strategies. Operating across Amman, Riyadh, Boston and Silicon Valley, Propeller has already deployed capital into five US-market-focused companies this year including Codemod, Netpreme, Stealthium, Pebble and Ciphero AI, building on a portfolio of more than 30 startups across its first two funds backed by Saudi Venture Capital Company and Jordan’s Innovative Startups and SMEs Fund.
SO WHAT? - The fund launch reflects growing investor recognition that Middle East and North Africa technical talent and capital can play a significant role in global AI infrastructure development. As the region undertakes large-scale AI implementation projects requiring advanced AI infrastructure and sophisticated software solutions, there is increasing opportunity for related startups. The rapid market grown and hunger for new AI-related technologies has also made the MENA region more welcoming for global startups, rather than excluding them from local startup programmes and funding as has been the case in the past. So Propeller’s new fund and its international footprint could well provide the means for global infrastructure startups to enter MENA, and MENA startups to expand globally.
Here are some key points about the new fund announcement:
Propeller announced the launch of its $50 million Fund III designed to connect MENA technical and entrepreneurial talent with Silicon Valley market opportunities whilst linking US AI startups with Middle East organisations implementing large-scale AI infrastructure projects.
The Jordan-founded venture capital firm now operates across four locations including Amman, Riyadh, Boston and Silicon Valley, having expanded its US presence earlier in 2025 with Hani Azzam joining as partner to lead American operations.
Fund III will invest exclusively in seed to pre-series A stage startups building horizontal AI infrastructure and AI-native applications, spanning silicon-adjacent technologies through to enterprise workflows, with priority given to founders demonstrating global ambitions from inception.
Propeller has already made five investments in 2025 from the new fund, all focused on or actively selling to the US market, including developer tooling company Codemod,networking startup Netpreme, cybersecurity firms Stealthium and Ciphero AI, and infrastructure provider Pebble.
Across its first two funds, Propeller has backed more than 30 startups including Clarity (formerly Anecdote), ActivePieces, OpenCX, Corgea, Hounddog.ai, POSRocket and Maqsam, generating significant value whilst supporting international market expansion.
Propeller’s second fund received backing from Saudi Venture Capital Company and Jordan’s Innovative Startups and SMEs Fund, demonstrating institutional support for the firm’s cross-border investment thesis connecting MENA and North American ecosystems.
ZOOM OUT - The new Propeller fund launch comes as Middle East nations, particularly the UAE and Saudi Arabia, build out AI infrastructure to meet surging demand. This is creating opportunities for both global hyperscalers and emerging startups, inside and outside the region. Saudi Arabia is investing heavily in AI compute capacity for local and global consumption, attracting significant foreign direct investment whilst positioning itself as a major exporter of AI cloud services through its access to capital, energy and real estate. This infrastructure boom is fueling a wave of startup funding, with recent examples including Khobar-based Strataphy raising $6 million for subsurface cooling technology targeting data centres, and Saudi AI infrastructure provider OmniOps securing $8 million.
[Written and edited with the assistance of AI]