SparkLabs, a venture capital firm specializing in investments in artificial intelligence startups, has announced the creation of a new $50 million fund called AIM AI Fund. This fund aims to support emerging companies in the AI space, both through its own AIM-X accelerator in Saudi Arabia and in other parts of the world. The announcement was made on Tuesday, highlighting SparkLabs' commitment to expanding the global AI ecosystem.
Global Growth in AI and Saudi Arabia's Role
The growing interest in AI, particularly in the area of generative AI, has driven the creation of numerous startups in recent years. SparkLabs has been at the center of this movement, having previously backed prominent companies such as OpenAI, Vectara, and Anthropic. Now, with its new fund, the firm seeks to further capitalize on this boom.
The AIM-X accelerator, launched by SparkLabs earlier this year in Saudi Arabia, is part of the country's national initiative to strengthen its position in the AI field over the next five years. This initiative reflects a significant shift in the global technology landscape, where regions outside of Silicon Valley, such as the Middle East, are emerging as key hubs for AI development.
According to an Edge Delta report, as of March 2024, more than 210 AI unicorns (startups valued at over $1 billion) have emerged globally. Despite this global growth, the United States continues to lead in the creation of AI startups, with over 4,600 founded between 2013 and 2022.
Strategic Investments and Future Vision
SparkLabs' new fund will allocate approximately 35% of its capital to support accelerator participants, while the remaining 65% will focus on Series A and Series B investments in startups outside Saudi Arabia. According to Bernard Moon, co-founder and partner of SparkLabs, most investments will focus on the best AI startups, regardless of their geographic location, although a significant portion is expected to be in the United States.
Accelerator investments range from $200,000 to $500,000, depending on the circumstances, while Series A and B investments range from $1 million to $5 million. In total, SparkLabs plans to invest in 50 to 70 startups with this fund.
The first group of startups funded by the AIM AI Fund will be presented at the GAIN Summit, to be held on September 10 in Riyadh. The first 14 supported startups include viACT (Hong Kong), IdeasLab (New York), and Ahya (Pakistan), among others. These companies represent a wide range of AI applications, from workplace safety to electric vehicle fleet management.
