SparkLabs, a prominent early-stage venture capital firm known for its backing of OpenAI and numerous AI startups such as Vectara, Allganize, and Anthropic, is intensifying its investment strategy in the artificial intelligence sector. The firm unveiled its new $50 million AIM AI Fund on Tuesday, which will support AI startups through its AIM-X accelerator based in Saudi Arabia, along with a range of additional AI ventures globally.
This new funding initiative reflects ongoing trends in the artificial intelligence landscape, highlighting the remarkable rise in generative AI interest that has led to a proliferation of startups and a competitive race among investors to discover the next big player in the AI realm.
Furthermore, it demonstrates that AI opportunities are expanding beyond traditional hubs like Silicon Valley. SparkLabs launched AIM-X, an AI-focused startup accelerator, earlier this year in Saudi Arabia, as part of a national strategy aimed at advancing AI technology over the next five years.
According to a recent report by Edge Delta, over 210 AI unicorns—companies valued at more than $1 billion—have emerged globally as of March 2024. While the U.S. still leads in AI startup formation, having established 4,633 new firms between 2013 and 2022, the global landscape continues to diversify significantly.
Approximately 35% of SparkLabs’ AIM AI Fund will be allocated to participants of the accelerator, with the remaining 65% slated for Series A and Series B investments extending beyond Saudi Arabia. Co-founder and CEO Bernard Moon stated, “The accelerator will ensure a minority stake for Saudi Arabia or MENA investments, about 10%-20%. The bulk will focus on attracting top-tier AI startups from all over the world, predominantly from the U.S.”
The average investment amount for accelerator participants is set at $200,000, extendable up to $500,000 under special circumstances, while Series A and Series B investments will range from $1 million to $5 million. The fund aims to finance between 50 and 70 startups in total.
While SparkLabs has not disclosed the names of its limited partners, Moon revealed that one of them includes a government fund of funds.
The first cohort of startups will be revealed live at the GAIN Summit (Global AI Summit) in Riyadh next Tuesday, September 10. Moon highlighted that SparkLabs has already invested in 14 startups as part of the AIM AI Fund:
- viACT: A Hong Kong-based AI video analytics company focused on workplace safety and construction management.
- IdeasLab: A New York startup creating AI solutions for analyzing body movements without sensor usage.
- Ahya: A Pakistan-based firm developing AI-driven climate software for carbon management.
- Swirl: An Indian video platform utilizing AI to enhance brand engagement via videos and live shopping.
- Contents.com: An Italian platform specializing in AI content creation.
- Orko: A Singapore-based fleet management platform for electric vehicles, enhanced by AI.
- Layla: A German startup leveraging AI in the travel industry.
- Roughneck AI: A multimodal platform from San Francisco for deep learning applications.
- Arctech Innovation: A company using AI for pest and disease detection, spun out from the London School of Hygiene & Tropical Medicine.
- OptimHire: An AI recruitment platform located in San Francisco.
- WideBot AI: An Arabic generative AI platform situated in Riyadh.
- Orbo AI: A Mumbai startup developing AI tools for enhancing beauty brand loyalty and sales.
- Vyrill: A San Francisco-based marketing platform specializing in AI video intelligence.
- Stack Tech Farm: An agritech company focusing on vertical farming in Berlin.
SparkLabs boasts over 14 funds globally, including two in Saudi Arabia, with investments in more than 550 startups worldwide.