Khwarizmi Ventures, the Riyadh-based venture capital firm, has announced the first close of its second fund at more than $70 million, matching the full size of its debut vehicle from 2021. The signed commitments, equivalent to over SAR 270 million, came from institutional investors and Saudi family offices, according to the firm.
Fund II will remain sector-agnostic, with stated interest in fintech, consumer technology, and applied AI. Initial cheques will range from $1 million to $5 million, deployed at the seed and Series A stages, with reserved capacity for follow-on rounds as portfolio companies scale.
From Fund I to Fund II
Khwarizmi closed its first fund at $70 million in 2021 and has since become one of the more active early-stage backers operating out of the Kingdom. The firm has invested in more than 30 companies, including Calo, Eyewa, SiFi, Tamara, and HALA.
The firm reported five exits from Fund I and said it has begun distributing capital back to LPs within the fund's first five years, an unusually quick return cycle for a regional venture vehicle.
Who Is Running the Fund
The firm is led by managing partner Abdulaziz AlTurki, alongside partners Homam Meaddawi and Arjun Chopra. Founding partners Dr. Ibrahim Almojel and Yasser Alkadi remain involved in the platform.
The leadership team has stayed consistent across both funds, a continuity point Saudi LPs increasingly look for when underwriting follow-on commitments to second-time managers.
Reading the Saudi VC Signal
Hitting Fund I's full size at first close, rather than at final close, is the headline number here. It points to LP appetite for managers with realised exits in a region where most early-stage funds are still sitting on paper marks.
The $1 million to $5 million cheque size also positions Khwarizmi squarely in the gap between angel rounds and the larger Series A cheques written by regional growth funds, a band that has thinned out as several MENA early-stage investors have shifted upmarket.
For GCC founders, the practical takeaway is straightforward: a sector-agnostic fund with fresh dry powder, a Saudi LP base, and the ability to lead seed rounds is back in market.
