Propeller, a venture capital firm founded in Jordan, has announced a $50 million Fund III focused on early-stage startups building critical AI infrastructure and software. The fund will deploy capital across both the United States and the Middle East and North Africa (MENA) region, targeting founders with ambitious, cross-border expansion plans.
Bridging MENA and Silicon Valley
Operating from offices in Amman, Riyadh, Boston, and Silicon Valley, Propeller has already invested in five US-focused companies in 2025: Codemod, Netpreme, Stealthium, Pebble, and Ciphero AI. These investments build on a portfolio of over 30 startups backed by Saudi Venture Capital Company and Jordan’s Innovative Startups and SMEs Fund. This demonstrates growing institutional confidence in Propeller’s strategy of connecting MENA technical talent with opportunities in North America.
Why This Matters: The Rise of AI Infrastructure Demand
The launch of Fund III is a direct response to the increasing global demand for AI infrastructure. The MENA region, particularly Saudi Arabia and the UAE, is undergoing rapid AI implementation, creating significant opportunities for startups building essential technologies.
- Regional Investment: Middle Eastern nations are investing heavily in AI compute capacity, attracting foreign investment and positioning themselves as potential exporters of AI cloud services.
- Changing Landscape: The MENA region is becoming more open to global startups, moving away from previous exclusionary practices in local funding programs.
- Cross-Border Growth: Propeller’s fund aims to facilitate both global infrastructure startups entering MENA and MENA startups expanding internationally.
Key Fund Details
Fund III will focus exclusively on seed to pre-Series A stage startups operating in horizontal AI infrastructure and AI-native applications. This includes technologies adjacent to silicon development and enterprise workflows. Priority will be given to founders with clear global ambitions from the outset. Propeller’s earlier funds have already supported companies such as Clarity (formerly Anecdote), ActivePieces, and POSRocket, demonstrating their track record of backing successful, internationally-minded startups.
Recent Regional Activity
The wider ecosystem is also experiencing growth. Recent examples include Strataphy raising $6 million for subsurface cooling technology for data centers and OmniOps securing $8 million as a Saudi AI infrastructure provider. This demonstrates the momentum behind AI infrastructure development in the region.
Propeller’s expansion into key markets and strategic partnerships with institutional investors position it to capitalize on the growing demand for AI infrastructure globally.
The firm’s presence in four major tech hubs – Amman, Riyadh, Boston, and Silicon Valley – underscores its commitment to facilitating cross-border collaboration and driving innovation in the AI sector. This fund is not merely an investment vehicle; it is a strategic bridge connecting two critical ecosystems in the unfolding AI revolution.
