SparkLabs, a venture capital firm known for its investments in AI startups such as OpenAI, Vectara, and Kneron, has recently closed a new $50 million fund to support AI startups globally. The AIM AI Fund will primarily focus on backing startups from its AIM-X accelerator in Saudi Arabia, as well as other AI startups around the world. This new fund highlights the increasing interest and investment in artificial intelligence, particularly in the realm of generative AI.
The rise of generative AI has led to a proliferation of AI startups in recent years, with investors eager to find the next breakthrough company in the field. SparkLabs’ new fund underscores the expanding opportunities in AI beyond Silicon Valley, with initiatives like AIM-X in Saudi Arabia aiming to boost AI technology over the next five years. The global AI startup scene has also seen significant growth, with over 210 AI unicorns emerging as of March 2024, according to the Edge Delta report.
SparkLabs’ new fund will allocate about 35% of its funding to support accelerator participants, while the remaining 65% will be targeted at making Series A and Series B investments in AI startups beyond Saudi Arabia. Co-founder and CEO Bernard Moon emphasized that the fund will prioritize investing in the best AI startups regardless of location, with a focus on the U.S. market. The average check size for accelerator participants is set at $200,000, but can go up to $500,000 in unique cases. Series A and Series B investments will range from $1 million to $5 million, with the goal of investing in 50 to 70 companies in total.
While SparkLabs did not disclose its limited partners, Moon mentioned that they include a government fund of funds. The firm plans to announce its first batch of investments at the upcoming Global AI Summit in Riyadh on September 10. With a track record of investing in over 550 startups globally, SparkLabs is poised to play a significant role in shaping the future of AI innovation and entrepreneurship.
SparkLabs’ new $50 million fund highlights the continued growth and potential of the AI startup ecosystem, both in Saudi Arabia and on a global scale. By investing in promising AI startups and supporting innovation in the field, SparkLabs is contributing to the advancement of artificial intelligence technology and the realization of its potential across various industries.
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