SparkLabs, the early-stage venture capital firm renowned for backing numerous prominent AI startups including OpenAI, announced on Tuesday the completion of fundraising for its new $50 million fund, "AIM AI Fund." This fund will support its AIM-X accelerator in Saudi Arabia as well as other AI startups globally.
Bernard Moon, co-founder and CEO of SparkLabs, stated that approximately 35% of the new fund will be allocated to support accelerator participants, with the remaining 65% invested in Series A and B projects outside of Saudi Arabia. The average investment in accelerator participants is $200,000, with a maximum of $500,000, while Series A and B investments range from $1 to $5 million. The fund plans to invest in a total of 50 to 70 companies.
This move reflects the recent surge in investment within the AI sector. The rise of generative AI has led to a proliferation of related startups, with investors eagerly seeking the next potential giant. According to Edge Delta's report, as of March 2024, there are over 210 AI unicorn companies worldwide valued at more than $1 billion. Despite this, from 2013 to 2022, the United States remained the most concentrated country for AI startups, with 4,633 companies.
SparkLabs' new fund not only showcases the global expansion of AI opportunities but also highlights the potential of emerging markets like Saudi Arabia. The AIM-X accelerator, launched by SparkLabs earlier this year in Saudi Arabia, is part of the country's national plan, "AI Mission," to strengthen AI technologies over the next five years.
Moon emphasized that although the fund will allocate 10%-20% of investments to Saudi Arabia or the MENA region, the majority of the funds will be directed towards the best global AI startups, with a focus mainly on the United States. This strategic layout reflects SparkLabs' proactive positioning within the global AI innovation ecosystem, aiming to capture investment opportunities brought by the new wave of technological revolution.
SparkLabs has already invested in 14 startups through its AI fund, including:
viACT: A Hong Kong-based AI video analytics company focused on workplace safety and construction management.
IdeasLab: A New York-based startup developing AI solutions that analyze body movement without sensors.
Ahya: A Pakistani startup developing AI climate software for measuring, analyzing, reporting, reducing emissions, and trading carbon offsets.
Swirl: An Indian video platform leveraging AI to help brands connect with customers through features like video, user-generated content (UGC) reviews, video ads, and live shopping.
Contents.com: An AI content creation platform based in Italy.
Orko: An AI-powered electric vehicle fleet management platform in Singapore.
Layla: A German AI travel startup.
Roughneck AI: A San Francisco-based platform for multi-modal real-world data applications using deep learning.
Arctech Innovation: A startup spun out from the London School of Hygiene & Tropical Medicine, using AI to create sensor products for pest and disease detection.
OptimHire: An AI recruitment platform in San Francisco.
WideBot AI: An Arabic generative AI platform based in Riyadh.
Orbo AI: A Mumbai-based startup building an AI tool to enhance loyalty, engagement, and sales for beauty brands.
Vyrill: A San Francisco-based AI-driven video intelligence and marketing platform.
Stack Tech Farm: A Berlin-based agritech startup specializing in vertical farming.
SparkLabs manages over 14 funds globally, including two in Saudi Arabia, and has invested in more than 550 startups worldwide.