A venture capital firm renowned for its support of pioneering AI startups like Vectara, Allganize, Kneron, Anthropic, xAI, Glade (YC S23), and Lucidya AI is poised to further amplify its investment in innovative ventures within this realm. The venture capital agency announced Tuesday the closure of a new $50 million fund, the AIM AI Fund, designed to support AI startups emerging from its AIM-X accelerator in Saudi Arabia and other AI startups globally.
SparkLabs’ launch of a new fund underscores the lingering fascination with synthetic intelligence that has persisted over the past few years, reflecting the industry’s ongoing quest to unlock its vast potential. The proliferation of generative AI has sparked an influx of startups and investors seeking the next OpenAI or acquisition opportunity to enhance their own AI capabilities.
The expansion of AI alternatives also considers how they continue to spread beyond Silicon Valley. As part of its AI Mission, SparkLabs has launched AIM-X, a pioneering AI-focused startup accelerator in the kingdom, aimed at fortifying AI expertise over the next five years.
Significant growth has been witnessed globally in AI startup ecosystems over recent years. As of March 2024, more than 210 AI unicorns, collectively valued at over $1 billion, have emerged. Regardless of its global reach, the United States has been uniquely impacted by social media’s influence. According to a recent report, General nonetheless holds the top spot for launching the largest number of AI startups between 2013 and 2022, boasting an impressive total of 4,633 ventures.
According to SparkLabs’ co-founder and CEO Bernard Moon, approximately 35% of their new funding will support accelerator participants, while the remaining 65% will be directed towards making Series A and B investments outside Saudi Arabia.
According to Moon, the accelerator will focus on allocating around 10-20 percent of its resources to Saudi Arabian or Middle Eastern North African (MENA) investment opportunities, specifically targeting minority stakes. “The majority will likely comprise top-tier AI startups, regardless of location; however, I anticipate the majority to come from the United States.”
Accelerator participants’ typical investment will likely range from $200,000 to a maximum of $500,000, depending on the specific circumstances, according to Moon’s statement to TechCrunch. The Sequence A and Sequence B investments are likely to range from $1 million to $5 million, according to Moon’s statement. The investment aims to hold positions between 50% and 70% of the total assets in the fund.
While SparkLabs did not disclose its limited partners, Moon Ventures noted that its LPs comprise a sovereign fund of funds.
The inaugural batch is expected to debut at the International AI Summit in Riyadh on Tuesday, September 10. Moon announced to TechCrunch that SparkLabs had already backed 14 startups via its inaugural AI-focused investment fund.
- A cutting-edge Hong Kong-based AI-powered video analytics platform specializing in enhancing office security and streamlining administrative processes.
- A company founded in New York that has developed artificial intelligence solutions for analyzing physical movements without relying on sensors.
- A Pakistani startup, having developed an AI-driven localized weather software platform, enables accurate measurements, assessments, and reports on emissions, facilitating the purchase and trading of certified carbon credits.
- A leading Indian video platform leverages artificial intelligence to bridge the gap between manufacturers and customers through seamless connections on websites and mobile applications via innovative features such as videos, user-generated content, reviews, video advertisements, and live shopping experiences.
- A cutting-edge AI-powered content creation platform in Italy revolutionizes the way businesses craft engaging stories.
- A pioneering Singaporean AI-powered electric vehicle (EV) fleet management solution.
- : in Germany
- A pioneering digital hub fostering interdisciplinary exploration and in-depth learning experiences in the heart of San Francisco.
- : a startup that spun out from the London Faculty of Hygiene & Tropical Medication, utilizing AI to create sensor-enabled merchandise for the detection of pests and ailments
- A innovative AI-powered talent acquisition solution based in San Francisco.
- An innovative Arabic generative AI platform headquartered in Riyadh.
- A Mumbai-based startup has developed an AI-driven solution to enhance beauty companies’ customer loyalty, interactions, and revenue growth through its innovative technology.
- A pioneering AI-driven video analytics and advertising platform headquartered in San Francisco.
- A German-based agritech startup pioneering innovative vertical farming solutions in Berlin.
SparkLabs boasts a portfolio of over 14 international funds, with a notable presence in Saudi Arabia through two dedicated funds. With a portfolio that spans over 550 startups worldwide, its track record of innovative investment is truly impressive.
