Key Takeaways
- • Khwarizmi Ventures closed Fund II at $70M+ (SAR 270M) in its first close, completed in February 2026, with commitments from institutional investors and leading Saudi family offices targeting seed and Series A startups across the GCC.
- • The firm plans to deploy initial checks ranging from $1M to $5M per investment with capacity for follow-on rounds, maintaining a sector-agnostic approach with focus areas in fintech, consumer tech, and artificial intelligence.
- • Khwarizmi's Fund I track record demonstrates five successful exits within its first five years, with the firm having backed 30+ startups including notable exits and growth-stage companies like Calo, Eyewa, Tamara, and HALA since its 2021 launch.
- • Fund II launch reflects Saudi Arabia's positioning as the largest venture capital market in the MENA region, with the kingdom emerging as the central hub for technology investment over the coming decade.
Summary
Khwarizmi Ventures, a Saudi Arabia-based venture capital firm founded in 2021, has successfully launched Fund II with a first close exceeding $70 million (SAR 270 million), marking the firm's second institutional fund dedicated to early-stage technology companies across the Gulf Cooperation Council region. The fund completed its initial close in February 2026 with signed commitments from institutional investors and prominent Saudi family offices, positioning the firm for accelerated capital deployment into its pipeline of founder-led opportunities.
The new fund will target seed and Series A stage companies, with Khwarizmi planning to deploy initial checks between $1 million and $5 million per investment while maintaining the flexibility to participate in follow-on rounds. The fund maintains a sector-agnostic investment mandate, though focus areas include fintech, consumer technology, and artificial intelligence—sectors that align with broader regional technology trends and institutional investor priorities across the GCC.
Khwarizmi's Fund I performance provides institutional context for Fund II's launch. Since 2021, the firm has invested in more than 30 startups, achieving five successful exits within the fund's first five years of operation and beginning capital distributions back to investors. Notable portfolio companies include Calo, Eyewa, Tamara, SiFi, and HALA, demonstrating execution across consumer and financial services verticals. The firm's track record of deploying capital at early stages and achieving liquidity events positions Fund II within an increasingly competitive early-stage venture landscape in the MENA region.
The timing of Fund II's launch reflects Saudi Arabia's consolidation as the largest venture capital market in MENA. Fund II's announcement underscores the kingdom's strategic importance as the regional center of gravity for technology investment, with institutional capital increasingly flowing toward GCC-focused early-stage opportunities. For institutional investors and family offices seeking GCC exposure at seed and Series A stages, Khwarizmi's expanded capital base and demonstrated exit performance represent a meaningful option within the regional venture ecosystem.
The new fund will target seed and Series A stage companies, with Khwarizmi planning to deploy initial checks between $1 million and $5 million per investment while maintaining the flexibility to participate in follow-on rounds. The fund maintains a sector-agnostic investment mandate, though focus areas include fintech, consumer technology, and artificial intelligence—sectors that align with broader regional technology trends and institutional investor priorities across the GCC.
Khwarizmi's Fund I performance provides institutional context for Fund II's launch. Since 2021, the firm has invested in more than 30 startups, achieving five successful exits within the fund's first five years of operation and beginning capital distributions back to investors. Notable portfolio companies include Calo, Eyewa, Tamara, SiFi, and HALA, demonstrating execution across consumer and financial services verticals. The firm's track record of deploying capital at early stages and achieving liquidity events positions Fund II within an increasingly competitive early-stage venture landscape in the MENA region.
The timing of Fund II's launch reflects Saudi Arabia's consolidation as the largest venture capital market in MENA. Fund II's announcement underscores the kingdom's strategic importance as the regional center of gravity for technology investment, with institutional capital increasingly flowing toward GCC-focused early-stage opportunities. For institutional investors and family offices seeking GCC exposure at seed and Series A stages, Khwarizmi's expanded capital base and demonstrated exit performance represent a meaningful option within the regional venture ecosystem.
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