SparkLabs, an early-stage venture capital firm known for investing in many AI startups such as OpenAI, recently announced the establishment of a new $50 million AIM AI Fund. The fund will focus on investing in AI startups located within the AIM-X accelerator in Saudi Arabia, while also focusing on AI projects in other regions around the world. This move coincides with the global AI investment boom, the emergence of a large number of AI unicorn companies, and increasingly fierce competition. SparkLabs’ move aims to seize this booming market opportunity and further consolidate its leading position in the field of AI investment.
SparkLabs is an early-stage venture capital firm known for backing OpenAI as well as numerous AI startups such as Vectara, Allganize, Kneron, and others.
Recently, SparkLabs announced the closing of a new fund, the AIM AI Fund, with a scale of US$50 million, aiming to further invest in start-ups in the field of AI. The new fund will support AI startups within the AIM-X accelerator in Saudi Arabia, but will also focus on AI startup projects elsewhere around the world.
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In recent years, with the rise of generative AI, investment enthusiasm in the AI field has increased dramatically. A large number of new startups have appeared on the market, attracting the attention of many investors. They hope to find the next OpenAI, or at least one. Startups worthy of acquisition by large companies to enhance their AI competitiveness.
It is worth mentioning that SparkLabs’ AIM-X accelerator was launched in Saudi Arabia this year to support the country in promoting the development of AI technology in the next five years.
According to a report by Edge Delta, as of March 2024, more than 210 AI unicorns with a valuation of more than US$1 billion have emerged around the world. And although this is a global phenomenon, the United States still leads the way in the number of AI startups launched between 2013 and 2022, reaching 4,633.
According to Bernard Moon, co-founder and CEO of SparkLabs, approximately 35% of the new fund will be used to support accelerator participants, while the remaining 65% will be used for Series A and Series B investments outside Saudi Arabia. He said the accelerator will seek to make 10%-20% minority investments in investments in Saudi Arabia or the Middle East and North Africa region, while the rest will focus on the world's best AI startups, with most investments expected to remain in the United States.
The average investment for an accelerator participant will be $200,000, but may reach $500,000 in exceptional circumstances. Series A and Series B investments range from US$1 million to US$5 million. SparkLabs plans to invest in a total of 50 to 70 companies through this new fund.
While SparkLabs did not disclose specific information about its limited partners, Moon said they include a government fund. SparkLabs has completed its first investment in 14 startups, covering multiple industries and regions, such as viACT in Hong Kong, IdeasLab in New York and Layla in Germany.
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? SparkLabs closed a new $50 million fund aimed at supporting global AI startups.
About 35% of the new fund will go to accelerator participants, with the remaining 65% going to Series A and Series B investments.
SparkLabs has completed investments in 14 startups, covering multiple industries and regions.
All in all, SparkLabs’ new fund marks its further expansion in the field of AI investment and also demonstrates Saudi Arabia’s emphasis on the development of AI technology. This huge investment will bring new development opportunities to global AI start-ups and is expected to spawn more breakthrough AI technologies and applications. In the future, SparkLabs’ investment trends in the AI field deserve continued attention.