SparkLabs, a notable early-stage venture capital firm, has recently announced the closure of a new $50 million fund, AIM AI Fund. This fund will primarily focus on backing AI startups emerging from its AIM-X accelerator in Saudi Arabia, as well as supporting AI startups globally.
Explosion of Interest in AI
The recent surge of interest in generative AI has led to a significant increase in startups in the AI space. Investors are keen on discovering the next OpenAI or a promising startup that larger companies might acquire to enhance their AI capabilities.
Global AI Startup Landscape
The landscape of AI startups has been rapidly expanding on a global scale. According to the Edge Delta report, over 210 AI startups, valued at over $1 billion each, have emerged as unicorns. Despite the global phenomenon, the United States still leads in founding the most AI startups between 2013 and 2022, with 4,633 startups.
SparkLabs plans to allocate 35% of its new fund to support accelerator participants, with the remaining 65% dedicated to making Series A and Series B investments beyond Saudi Arabia. Co-founder and CEO, Bernard Moon, stated that they will seek a minority allocation for Saudi Arabia or MENA investments, with the majority focused on investing in the best AI startups regardless of location, predominantly in the U.S.
Funding Breakdown
For accelerator participants, the average check size will be $200,000, but it can go up to $500,000 in unique cases. Series A and Series B investments will range between $1 million and $5 million, with the goal of investing in 50 to 70 companies in total from the fund.
SparkLabs will reveal its first batch of investments live at the GAIN Summit (Global AI Summit) in Riyadh on September 10. With a track record of investing in over 550 startups globally, SparkLabs aims to continue its support for the ever-growing AI startup ecosystem.
Overall, SparkLabs’ new fund, AIM AI Fund, signifies the continuing expansion and evolution of the AI startup landscape. With a focus on investing in promising AI startups globally, SparkLabs is poised to play a significant role in shaping the future of AI technology and innovation.