SparkLabs It is an early stageVenture CapitalThe company is known for supporting OpenAI and numerous AI startups, such as Vectara, Allganize, Kneron, etc.
SparkLabs, the early-stage venture capital firm known for backing several high-profile AI startups such as OpenAI, announced on Tuesday that it has closed a new $50 million fund, the AIM AI Fund, which will support its AIM-X accelerator in Saudi Arabia and other AI startups around the world.
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In recent years, with the rise of generative AI, investment enthusiasm in the field of AI has increased dramatically. A large number of startups have emerged in the market, attracting the attention of many investors. They hope to find the next OpenAI, or at least a startup worthy of acquisition by a large company to enhance their own AI competitiveness.
According to Edge Delta’s report, as of March 2024, there will be more than 210 AI unicorns with a valuation of more than $1 billion around the world. And although this is a global phenomenon, the United States still leads in the number of AI startups founded between 2013 and 2022, reaching 4,633.
According to Bernard Moon, co-founder and CEO of SparkLabs, about 35% of the new fund will be used to support participants in the accelerator, and the remaining 65% will be used for Series A and Series B investments outside Saudi Arabia. He said that the accelerator will seek to make minority investments of 10%-20% in Saudi Arabia or the Middle East and North Africa region, and the rest will focus on the world's best AI startups, and it is expected that most investments will still be in the United States.
The average investment for accelerator participants will be $200,000, but in special cases it may 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 does not disclose the specific information of its limited partners, Moon said that one of them is a government fund. SparkLabs has made its first investments in 14 startups covering a variety of industries and regions, such as Hong Kong's viACT, New York's IdeasLab and Germany's Layla.