Khwarizmi Ventures announced today the launch of Khwarizmi Venture Capital Fund II, dedicated to backing ambitious founders building technology companies across the GCC market.
The fund successfully completed its first close in February, with signed commitments exceeding SAR 270M ($70M+) from institutional investors and leading Saudi family offices. Khwarizmi plans to deploy capital into its first initial investments in the coming period.
About Khwarizmi Ventures
Khwarizmi Ventures launched its $70M Fund I in 2021 with the vision of enabling algorithms that will shape the future. Today, Khwarizmi is one of the most active early-stage investors in the Kingdom, having backed more than 30 startups, including Calo, Eyewa, SiFi, Tamara, and HALA. Fund I has achieved 5 successful exits and has begun distributing capital within the fund’s first 5 years.
The new fund marks the next chapter for the firm, deepening its commitment to the Seed and Series A stages at a pivotal moment for the region, as Saudi Arabia cements its position as the largest venture market in MENA and as the center of gravity for the next decade of technology investment.
Khwarizmi Ventures is led by Managing Partner Abdulaziz AlTurki, alongside partners Homam Meaddawi and Arjun Chopra, and founding partners Dr. Ibrahim Almojel and Yasser Alkadi. Bringing together deep experience across investment, technology, entrepreneurship, and consulting. Their combined backgrounds span venture investing and building technology startups across the United States, India, and the region. Together, the partners combine regional expertise, global networks, and hands-on operating experience to support ambitious founders and high-growth companies.
A Pivotal Moment for the Venture Ecosystem
The GCC venture capital market has evolved from emergence to validation, with Saudi Arabia increasingly becoming the region’s center of gravity. In 2025, Saudi startups raised a record $1.7B across 257 transactions, marking 145% year-over-year growth in funding and the highest annual deal count in the Kingdom. This momentum is supported by strong structural fundamentals: a large, young market, with 71% of the Saudi population under 35; an increasingly digital payments environment, with electronic payments accounting for 85% of retail payments; and world-class digital infrastructure, with Saudi Arabia ranking 6th globally, 2nd among G20 countries, and 3rd in Asia in the UN’s 2024 E-Government Development Index.
What is particularly notable now is the ecosystem’s depth. Beyond headline funding rounds, the market is seeing stronger company formation, more repeat founders and experienced operators, broader participation by local institutions, and growing conviction among international investors. This maturity is further reinforced by Saudi Arabia’s broader private-sector momentum, with the private sector’s contribution to GDP reaching 51% in 2025, alongside real GDP growth of 4.5% and non-oil activity growth of 4.9%.
Together, these factors and dynamics lay a strong foundation for technology adoption across the consumer and enterprise sectors, signalling a healthier capital stack, a more disciplined founder ecosystem, and clearer pathways to scale and liquidity. This positions Saudi Arabia as a durable, long-term hub for technology and venture capital across the GCC and beyond.
Investment Focus
The new fund will remain sector-agnostic, with continued interest in fintech, consumer technology, and AI applications, and plans to invest with initial checks of $1M-$5M at the Seed to Series A stages. The fund retains significant capacity for follow-on investment, allowing Khwarizmi to continue supporting founders from their earliest institutional round through the growth stage.
Beyond capital, Khwarizmi Ventures works closely with portfolio founders on the most critical levers of company building, including business development, talent acquisition, fundraising, market expansion into Saudi Arabia, and strategic introductions across the Khwarizmi network. The firm has helped portfolio companies secure key hires, including co-founders and senior operators; mobilise lead investors for follow-on rounds; and access both equity and debt capital. This hands-on approach reflects Khwarizmi’s role as an active partner to founders, helping them navigate growth, unlock commercial opportunities, and build stronger foundations for scale.
A Call to Founders
Khwarizmi is actively deploying capital from the new fund and welcomes conversations with founders building technology or tech-enabled startups in the GCC market. Founders can submit their pitch through our website.
