Jordan VC Firm Propeller Launches $50M Fund for AI Startups

Propeller, a venture capital firm focused on AI infrastructure, has launched a $50 million Fund III to connect MENA technical and entrepreneurial talent with Silicon Valley and to link US AI startups with large-scale AI infrastructure implementers in the Middle East. Rooted in Jordan, the firm now operates across Amman, Riyadh, Boston and Silicon Valley, bridging the MENA and US ecosystems.

The fund will focus exclusively on software startups building horizontal AI infrastructure and AI-native applications, from silicon-adjacent technologies to enterprise workflows. Propeller said it has already made five investments this year that are based in or actively selling to the US market: Codemod, Netpreme, Stealthium, Pebble and Ciphero AI. It added that, when evaluating founders from MENA, it will prioritise those with global ambitions and go-to-market strategies from inception, and businesses built for scale.

“The future of MENA tech isn’t local, it’s global,” said Zaid Farekh, Founder of Propeller. “Our strategy is to back founders who are building for cross-border growth. We strongly believe that our region will play a key role on the world stage in building the future of AI infrastructure. Propeller Ventures Fund III is designed as a bridge between exceptional builders and buyers from the MENA region and the startup, venture, and artificial intelligence ecosystems of Silicon Valley.”

Propeller noted that its team has experience launching, scaling and exiting software startups in MENA and North America, and has built a network of partners and potential design partners in both regions. Earlier this year, Hani Azzam joined to expand the firm’s US presence and, with the launch of Fund III, steps into the role of Partner.

Over its first two funds, Propeller has backed more than 30 startups, including Clarity (formerly Anecdote), ActivePieces, OpenCX, Corgea, Hounddog.ai, POSRocket and Maqsam. Its second fund was backed by Saudi Venture Capital Company and Jordan’s Innovative Startups and SMEs Fund. Founded in 2017, Propeller invests at Seed to Pre-Series A in horizontal AI infrastructure, AI-native applications, developer tools and core software systems.