SparkLabs, an early-stage venture capital firm that has made a name for itself by investing in OpenAI and numerous other AI startups such as Vectara, Allganize, Kneron, Anthropic, xAI, Glade, and Lucidya AI.
Now, they are turning to the global AI Startupshas launched a new offensive, announcing that it has closed a new $50 million fund, AIM AI Fund, which will support AI startups at its AIM-X accelerator in Saudi Arabia, as well as other AI startups around the world.
SparkLabs’ new fund and investment strategy reflect the huge trends surrounding artificial intelligence in recent years. In particular, the explosive rise of generative AI has attracted a large number of startups and investors to flock to it, hoping to find the next OpenAI, or at least a startup that can be acquired by a large company to enhance its own AI competitiveness.
According to Edge Delta's report, the number of AI startups around the world has grown significantly in the past few years. As of March 2024, more than 210 AI unicorn companies with a valuation of more than $1 billion have emerged.
About 35% of SparkLabs' new fund will support accelerator participants, while the remaining 65% is 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 Middle East and North Africa, while the rest of the funds will be prioritized for the best AI startups in the world, most of which are expected to come from the United States.
The average investment amount for accelerator participants is $200,000, but in special cases it can be as high as $500,000. The investment amounts for Series A and B rounds will range from $1 million to $20,000. Ultimately, SparkLabs plans to invest in 50 to 70 companies from this fund.
SparkLabs did not disclose the details of its limited partners, but Moon said they include a government fund.
Moon exclusively revealed that SparkLabs has invested in 14 startups through the AI Fund, including:
viACT: Headquartered in Hong Kong, it focuses on AI video analysis for workplace safety and building management.
IdeasLab: Located in New York, it provides sensor-free body motion analysis AI solutions.
Ahya: From Pakistan, developed an AI climate software to measure, analyze, report, reduce emissions and trade carbon offsets.
Swirl: An Indian video platform that uses AI to help brands connect with customers through videos, user content (UGC) comments, video ads, and live shopping - Contents.com: An Italian AI content creation platform.
Orko: Singapore’s AI-powered train fleet management platform.
Layla: A German AI travel startup.
Roughneck AI: A San Francisco-based multimodal real-world data platform for deep learning applications.
Arctech Innovation: A startup from the London School of Hygiene & Tropical Medicine that uses AI to create sensor-enabled products for detecting pests and diseases.
OptimHire: An AI recruiting platform based in San Francisco.
WideBot AI: Arabic language generation AI platform based in Riyadh.
bo AI: A startup in Mumbai, India, that has developed an AI tool to help beauty brands increase customer loyalty, engagement, and sales.
Vyrill: An AI video intelligence and marketing platform based in San Francisco.
Stack Tech Farm: Berlin-based agricultural technology startup focused on vertical farming.
SparkLabs has more than 14 funds globally and two funds in Saudi Arabia and has invested in more than 550 startups.