SparkLabs, an early-stage venture capital firm known for backing AI startups such as OpenAI, is set to double down on its investments in the AI space. The firm recently announced the closure of its new $50 million fund, AIM AI Fund, which will support AI startups from its own AIM-X accelerator in Saudi Arabia as well as other AI startups around the world.
This move by SparkLabs reflects the growing trend of increased interest in AI and generative AI in particular. The explosion of startups in the AI space, coupled with a surge in investors looking for the next big AI company, highlights the wider opportunities that AI presents beyond Silicon Valley.
The AIM-X accelerator is part of SparkLabs’ AI Mission, a national initiative in Saudi Arabia aimed at bolstering AI technology over the next five years. This initiative aligns with the global increase in AI startups, with over 210 AI unicorns valued at over $1 billion emerging as of March 2024, according to the Edge Delta report. Despite this being a global phenomenon, the United States remains the dominant country in terms of founding the most AI startups between 2013 and 2022, with 4,633 startups.
Bernard Moon, co-founder and CEO of SparkLabs, explained that about 35% of the new fund will support accelerator participants, while the remaining 65% will be allocated for Series A and Series B investments beyond Saudi Arabia. The majority of investments will focus on the best AI startups regardless of location, with a particular emphasis on the United States.
The average check size for accelerator participants will be $200,000, but it can go up to $500,000 in unique situations. Series A and Series B investments will range between $1 million and $5 million. SparkLabs aims to invest in a total of 50 to 70 companies from the fund.
While SparkLabs did not disclose the names of its limited partners, Moon mentioned that they include a government fund of funds. The first batch of startups supported by the AI fund will be announced at the GAIN Summit (Global AI Summit) in Riyadh on September 10.
Moon revealed that SparkLabs has already invested in 14 startups from the fund’s first batch. These startups include viACT, an AI video analytics company based in Hong Kong; IdeasLab, a New York-based startup focused on analyzing body movements using AI; and Ahya, a Pakistan-based company that has developed AI-powered climate software for emissions analysis and carbon offset transactions.
Other investments include Swirl, a video platform in India that uses AI to enhance customer engagement; Contents.com, an AI platform for content creation in Italy; Orko, an AI-enabled EV fleet management platform in Singapore; Layla, an AI-powered travel startup in Germany; Roughneck AI, a San Francisco-based real-world data platform for deep learning applications; and Arctech Innovation, a startup that leverages AI to detect pests and diseases in agriculture.
Additionally, SparkLabs has invested in OptimHire, an AI-enabled recruitment platform in San Francisco; WideBot AI, an Arabic generative AI platform in Riyadh; Orbo AI, a Mumbai-based company that develops AI tools for beauty brands; Vyrill, an AI-powered video intelligence and marketing platform in San Francisco; and Stack Tech Farm, an agritech startup specializing in vertical farming in Berlin.
With over 14 funds globally and two funds in Saudi Arabia, SparkLabs has a strong track record of investing in over 550 startups worldwide. Its latest $50 million fund reflects its commitment to supporting AI startups and driving innovation in this rapidly expanding field.
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