SparkLabs is a venture capital firm known for its investments in early-stage companies, particularly in the AI sector, including renowned entities like OpenAI and numerous startups such as Vectara, Allganize, and Kneron.
Recently, SparkLabs announced the closure of a new fund, the AIM AI Fund, which totals $50 million. This fund aims to further invest in startups within the AI field. The new fund will support AI startups located within the AIM-X accelerator in Saudi Arabia and will also focus on AI ventures globally.
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In recent years, with the rise of generative AI, investment enthusiasm in the AI sector has surged dramatically, leading to the emergence of numerous new startups and capturing the attention of many investors who are eager to find the next OpenAI or at least a startup worthy of acquisition by larger companies to enhance their AI capabilities.
It is worth noting that SparkLabs' AIM-X accelerator was launched this year in Saudi Arabia, aiming to support the nation's push for AI technology development over the next five years.
According to a report by Edge Delta, as of March 2024, there have been over 210 AI unicorn companies valued at more than $1 billion worldwide. Although this is a global phenomenon, the number of AI startups founded in the United States between 2013 and 2022 still leads, with 4,633 companies.
Bernard Moon, co-founder and CEO of SparkLabs, revealed that approximately 35% of the new fund's capital will be used to support participants of the accelerator, with the remaining 65% allocated for Series A and B investments outside of Saudi Arabia. He stated that the accelerator will seek minority equity investments of 10%-20% in Saudi or MENA region investments, while the rest will focus on the most promising AI startups globally, with most investments expected to remain in the United States.
The average investment amount for accelerator participants will be $200,000, but in special cases, it could reach $500,000. Series A and B investments will range from $1 million to $5 million. SparkLabs plans to invest in a total of 50 to 70 companies through this new fund.
Although SparkLabs did not disclose the specific details of its limited partners, Moon mentioned that it includes a government fund. SparkLabs has already completed initial investments in 14 startups, covering multiple industries and regions, such as viACT in Hong Kong, IdeasLab in New York, and Layla in Germany.
Key Points:
🌍 SparkLabs has closed a new $50 million fund aimed at supporting global AI startups.
📈 Approximately 35% of the fund's capital will be used for accelerator participants, with the remaining 65% for Series A and B investments.
🚀 SparkLabs has completed investments in 14 startups, spanning various industries and regions.