Disrupt.com announces USD $100m boost for AI startups

Dubai-based venture builder Disrupt.com has announced a USD $100 million investment to support AI startups worldwide.

Founded by entrepreneurs Aaqib Gadit, Uzair Gadit, and Umair Gadit, Disrupt.com will utilise capital from the USD $350 million sale of Cloudways to DigitalOcean Holdings in 2022. The company plans to specifically target the AI sector, viewing it as a crucial area for economic growth and technological advancement.

The venture builder has previously invested over USD $40 million in a variety of companies, significantly contributing to the growth of four in-house developed startups and several early-stage ventures. This new USD $100 million commitment marks a substantial increase in their investment activities, with an emphasis on providing more than just financial support. Their team of over 650 professionals offers technical and operational assistance to aid startups in their scaling efforts.

"Now is the time to be doubling down on our experience, financial investment and commitment required to help build the next wave of startups that will shape the future of the world as we know it," said Aaqib Gadit, Founding Partner of Disrupt.com. "With Web 3.0 in its infancy and AI storming into our lives, the opportunity to problem solve and create businesses that will fit the needs of how people live and work is up for the taking. Our region can not only keep up, but lead the way. We are excited to see where this journey will take us."

Disrupt.com's investment model differs from traditional venture capital approaches. It employs a three-pronged strategy, which includes building startups from scratch, co-building with external founders, and strategically investing in early-stage companies. Their 'CoBuild' model allows them to act as fractional co-founders, providing crucial resources like engineering, market strategy, and operations teams.

The company has identified five strategic sectors for its USD $100 million investment: artificial intelligence, cybersecurity, Web 3.0, automotive technology, and retail innovation. Preference will be given to startups that are at the pre-seed to Series A stages, demonstrating strong growth potential and clear paths to profitability rather than seeking growth at any cost.

This announcement comes in the context of a difficult funding environment in the region. According to Magnitt, MENA venture capital investments fell by 29% to just under USD $2 billion in 2024, while Saudi Arabian and UAE startups also experienced notable funding declines.

Disrupt.com's current portfolio highlights their effective operational strategy, including ZigChain, a Web 3.0 platform that has scaled to over 500,000 users, PureSquare in the cybersecurity field, and Squatwolf, a UAE-based fitness apparel brand. The firm has further committed funds to AI-focused initiatives, such as the transformation platform Agentnoon and climate tool Ahya.

Bartolome R. Bordallo, Co-Founder & CEO of ZigChain, praised Disrupt.com's approach: "Some investors write checks. Disrupt.com builds with you. They've helped us scale from a few early adopters to managing hundreds of millions in assets and launching our own blockchain."

Anam Khalid and Wajdan Gul, Co-founders of Squatwolf, also noted the supportive nature of the partnership with Disrupt.com: "With Disrupt, you get founder-friendly partners because they're founders themselves. They understand our challenges and opportunities in a way traditional investors simply cannot."

Disrupt.com plans to allocate its USD $100 million investment to startups with strong product-market fit and sound unit economics that suggest paths to profitability. This strategy underscores their commitment to fostering innovation and supporting startup ecosystems globally."