Disrupt.com Pumps $100M into AI Startups at Web3 Crossroads
1min read Dubai-based venture capital firm Disrupt.com has announced plans to invest $100 million in artificial intelligence startups, focusing on the intersection of Web3 and other industries. This move aims to further commercialize emerging AI technology and support innovative solutions in sectors such as cybersecurity, Web3, automotive technology, and retail.
The investment comes amidst a challenging year for venture capital funding in the Middle East and North Africa (MENA) region. According to Arab News, regional startups secured $2.3 billion in funding last year, marking a 42% drop from 2023. However, the United Arab Emirates remained the single largest vc market in the MENA region, with local companies raising $1.1 billion across 207 deals last year.
Looking beyond emerging markets, US venture capital backing of AI companies has surged recently. EY reported a 57% increase in AI venture deals in the fourth quarter, with the four largest deals valued at a combined $26.6 billion. Nearly half (44%) of the companies backed by US VCs in 2024 were AI players. EY predicts that investment dollars will continue to flow into the AI space, capturing an expected 45% of all VC funding in 2025.
AI startups are capitalizing on major technical breakthroughs from companies like OpenAI and Anthropic, whose large language models are being used by developers across a range of industries and use cases, including content creation, customer service, data analytics, and code generation. Generative AI inference is set to be the next "killer app for edge computing," according to Bain & Company.
