BECO Capital has closed on $370 million across two funds; $120 million for its fourth flagship early-stage fund and $250 million for its debut growth fund. The closings bring the firm’s assets under management to over $820 million, according to a press release.
Based in Dubai, BECO invests in start-ups across various industries, from pre-seed to initial public offering, primarily focusing on companies within the UAE and Saudi Arabia.
“We’ve spent over a decade partnering with founders at the earliest stages and helping them navigate the journey ahead,” firm co-founder and managing partner Dany Farha said in the statement. “This fund reflects our continued conviction in the early-stage opportunity in the UAE and Saudi [Arabia regions], and our belief in the depth of founder talent across the region.”
BECO’s early-stage fund will focus on investing from pre-seed to Series A and is led by managing partners Farha, Abdulaziz Shikh Al Sagha and Yousef Hammad. The firm’s early-stage strategy is sector agnostic but has a history of backing companies in the construction tech, fintech, proptech, consumer, retail tech and artificial intelligence verticals.
The fund’s LPs include government-backed investment organization Saudi Venture Capital Investment Company and the Saudi National Development Fund-backed investment firm Saudi Venture Capital, both of which committed $20 million, as well as the Riyadh Valley Company, the investment arm of King Saud University, according to fundraising data from affiliate title Private Equity International.
BECO’s debut growth fund will back companies from Series B to pre-IPO and is led by general partner Amer Alaily. The fund will deploy checks averaging $20 million into existing portfolio companies and new investments within its geographically targeted regions.
“Companies in the Gulf are achieving institutional scale, yet face limited access to dedicated growth capital,” Alaily said. “This fund gives us the flexibility to partner with the strongest emerging companies and support them through critical scaling phases toward potential exits.”
Founded in 2012 by Farha and a partner that has since left the firm, BECO previously closed on $211 million for its third flagship fund in 2021, $100 million for its second vehicle in 2019 and $50 million for its debut fund in 2015. Funds II and III included commitments from London-based family office AMK Investment Office, while all three of BECO’s previous funds were backed by Washington, DC-based development institution the International Finance Corporation, according to fundraising data from PEI.
BECO has backed more than 40 companies, two of which have gone on to become unicorns with valuations exceeding $1 billion, and has completed nine exits. Among the firm’s current portfolio companies are semiconductor-related products manufacturer Si-Ware Systems, application-based investing platform developer Thndr and AI-powered text search platform Vectara, according to its website.
