SparkLabs, an early-stage venture capital firm renowned for backing OpenAI and a variety of AI startups including Vectara, Allganize, Kneron, Anthropic, xAI, Glade (YC S23), and Lucidya AI, is set to intensify its investment in the AI sector. On Tuesday, the VC firm announced the closure of its new $50 million fund, AIM AI Fund, aimed at supporting AI startups through its AIM-X accelerator in Saudi Arabia, as well as other AI ventures globally.
This new fund highlights SparkLabs’ commitment to advancing artificial intelligence, a field that has seen explosive growth, particularly in generative AI. The surge in AI startups has caught the attention of investors worldwide, eager to discover the next OpenAI or a promising startup that could be a strategic acquisition target for major companies.
SparkLabs’ AIM-X accelerator, launched in Saudi Arabia earlier this year as part of the nation’s AI Mission initiative, is designed to boost AI technology development over the next five years. This move underscores the expanding opportunities in AI beyond Silicon Valley, reflecting a global trend toward AI innovation.
The global AI landscape has witnessed a significant rise in startups, with over 210 AI unicorns valued at more than $1 billion emerging by March 2024, according to the Edge Delta report. Despite the global spread, the U.S. remains a dominant force, founding the most AI startups between 2013 and 2022, totaling 4,633 according to the report.
SparkLabs plans to allocate 35% of its new fund to accelerator participants, with the remaining 65% focused on Series A and Series B investments beyond Saudi Arabia. Bernard Moon, co-founder and partner of SparkLabs, mentioned that the accelerator would allocate 10%-20% of its investments to Saudi Arabia or the MENA region, with the majority directed at top AI startups globally, particularly in the U.S.
The accelerator will offer an average check size of $200,000 for participants, with potential increases to $500,000 in specific cases. Series A and B investments will range from $1 million to $5 million, targeting 50 to 70 companies from the fund.
While SparkLabs did not disclose its limited partners, Bernard Moon indicated that the LPs include a government fund of funds.
The first batch of startups from the AIM AI Fund will be announced at the GAIN Summit (Global AI Summit) in Riyadh on September 10. So far, SparkLabs has invested in 14 startups through the AI fund:
- viACT: AI video analytics for workplace safety and construction management, based in Hong Kong.
IdeasLab: A New York-based startup providing AI solutions for analyzing body movements without sensors.
Ahya: A Pakistan-based startup offering AI-powered climate software for emissions analysis and carbon offset transactions.
Swirl: An Indian video platform using AI to enhance brand-customer engagement through various features.
Contents.com: An AI content creation platform based in Italy.
Orko: A Singaporean AI-enabled EV fleet management platform.
Layla: A Germany-based AI-powered travel startup.
Roughneck AI: A multimodal real-world data platform for deep learning, based in San Francisco.
Arctech Innovation: A startup from London, developing AI-powered sensor products for pest and disease detection.
OptimHire: An AI-enabled recruitment platform in San Francisco.
WideBot AI: An Arabic generative AI platform in Riyadh.
Orbo AI: A Mumbai-based startup providing AI tools for beauty brands.
Vyrill: A San Francisco-based AI-powered video intelligence and marketing platform.
Stack Tech Farm: A Berlin-based agritech startup specializing in vertical farming.
SparkLabs, with over 14 funds globally, including two in Saudi Arabia, has invested in more than 550 startups worldwide.
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