SparkLabs, the early-stage venture capital firm, has gained significant recognition for its investments in OpenAI and numerous other AI startups such as Vectara, Allganize, Kneron, Anthropic, xAI, Glade, and Lucidya AI.
Now, they are launching a new initiative globally for AI startups, announcing the closure of a $50 million AIM AI fund. This fund will support AI startups from their AIM-X accelerator in Saudi Arabia and other AI projects worldwide.
SparkLabs' new fund and broader investment strategy reflect the significant trends surrounding artificial intelligence in recent years. Particularly, the explosive rise of generative AI has attracted a surge of startups, drawing investors eager to find the next OpenAI or at least a startup that can be acquired by a major company to enhance its AI competitiveness.
Moreover, this move also highlights the rapid expansion of AI opportunities beyond silicon boundaries. AIM-X is SparkLabs' AI startup accelerator launched in Saudi Arabia, part of its AI mission to drive the country's AI technology development over the next five years.
According to Edge Delta's report, the number of global AI startups has grown significantly in the past few years. As of March 2024, over 210 AI unicorn companies valued at more than $1 billion have emerged. However, despite this global phenomenon, the US still leads with 4,633 startups from 2013 to 2022.
Approximately 35% of SparkLabs' new fund will support accelerator participants, with the remaining 65% planned for Series A and B investments outside Saudi Arabia. According to Bernard Moon, co-founder and CEO of SparkLabs, the accelerator will seek minority stakes of 10%-20% for investments in Saudi Arabia or the MENA region, while the rest of the funds will be prioritized for the best global AI startups, most likely from the US.
Investments for accelerator participants average $200,000, but can go up to $500,000 in special cases. Series A and B investments will range between $1 million and $10 million. Ultimately, SparkLabs plans to invest in 50 to 70 companies from this fund.
Although SparkLabs did not disclose specific details about its limited partners, Moon mentioned that one includes a government fund.
The fund's first investment projects will be officially announced next Tuesday (September 10) at the Global AI Summit in Riyadh. Moon exclusively revealed that SparkLabs has already invested in 14 startups through the AI fund, including:
- viACT: Based in Hong Kong, focusing on AI video analysis for workplace safety and construction management.
- IdeasLab: Located in New York, providing sensorless body motion analysis AI solutions.
- Ahya: From Pakistan, developing AI climate software for measuring, analyzing, reporting, reducing emissions, and trading carbon offsets.
- Swirl: An Indian video platform using AI to help brands connect with customers through videos, user-generated content (UGC) reviews, video ads, and live shopping.
- Contents.com: An AI content creation platform in Italy.
- Orko: An AI electric vehicle fleet management platform in Singapore.
- Layla: An AI travel startup in Germany.
- Roughneck AI: A multimodal real-world data platform in San Francisco for deep learning applications.
- Arctech Innovation: A startup from the London School of Hygiene & Tropical Medicine, using AI to create sensor-enabled products for pest and disease detection.
- OptimHire: An AI recruitment platform in San Francisco.
- WideBot AI: An Arabic generative AI platform in Riyadh.
- bo AI: A startup in Mumbai, India, developing AI tools to help beauty brands enhance customer loyalty, engagement, and sales.
- Vyrill: An AI video intelligence and marketing platform in San Francisco.
- Stack Tech Farm: An agritech startup in Berlin focusing on vertical farming.
SparkLabs has over 14 funds globally and two in Saudi Arabia, having invested in more than 550 startups.