SparkLabs' New $50 Million AI Fund in Saudi Arabia

SparkLabs, a venture capital firm with a history of supporting early-stage AI startups like OpenAI, Vectara, and Anthropic, is doubling down on the AI sector with a new $50 million fund, aptly named AIM AI Fund. This investment vehicle aims to propel the growth of AI startups in both its Saudi Arabian accelerator, AIM-X, and globally.

The Growing AI Landscape: A Global Phenomenon

SparkLabs' venture into Saudi Arabia reflects the broader trend of AI innovation extending beyond Silicon Valley. The rise of generative AI has spurred a surge in AI startups globally, leading to a hunt for the next OpenAI or, at the very least, promising startups with the potential to be acquired by larger companies seeking to enhance their AI capabilities.

• As of March 2024, over 210 AI unicorns, valued at over $1 billion, have emerged, according to the Edge Delta report.
• Despite being a global phenomenon, the U.S. remains the leader in AI startup founding, with 4,633 startups founded between 2013 and 2022.

SparkLabs' Investment Strategy: A Blend of Saudi Arabia and Global Focus

SparkLabs' AIM AI Fund will allocate approximately 35% of its funding to support participating startups in its Saudi Arabian accelerator, AIM-X. The remaining 65% will be dedicated to Series A and Series B investments in AI startups beyond Saudi Arabia, with a particular focus on the U.S. market.

• The accelerator will aim for a minority allocation of 10%-20% for Saudi Arabia or MENA investments, with the majority going to the most promising AI startups regardless of location.
• The average investment amount for accelerator participants will be $200,000, with the potential for up to $500,000 in exceptional cases.
• Series A and Series B investments will range from $1 million to $5 million, with a target of 50 to 70 companies in total receiving funding from the fund.

AIM-X: SparkLabs' Saudi Arabian AI Accelerator

SparkLabs launched AIM-X, its AI-focused startup accelerator, in Saudi Arabia earlier this year. This accelerator plays a key role in the kingdom's broader AIM (AI Initiative) strategy, a five-year national initiative aimed at fostering AI technology development. AIM-X's inaugural cohort will be announced at the GAIN Summit (Global AI Summit) in Riyadh on September 10th.

SparkLabs' Initial AI Investments: A Diverse Portfolio

SparkLabs has already invested in 14 startups through its AIM AI Fund. The first batch of investments includes:

• viAct (Hong Kong): AI video analytics for workplace safety and construction management.
• IdeasLab (New York): AI solutions for analyzing body movements without sensors.
• Ahya (Pakistan): AI-powered climate software for emissions measurement, analysis, reporting, reduction, and carbon offsetting.
• Swirl (India): Video platform using AI to help brands connect with customers through videos, UGC reviews, video ads, and live shopping.
• Contents.com (Italy): AI content creation platform.
• Orko (Singapore): AI-enabled EV fleet management platform.
• Layla (Germany): AI-powered travel startup.
• Roughneck AI (San Francisco): Multimodal real-world data platform for deep learning applications.
• Arctech Innovation (London): AI-driven sensor-enabled products for pest and disease detection.
• OptimHire (San Francisco): AI-enabled recruitment platform.
• WideBot AI (Riyadh): Arabic generative AI platform.
• Orbo AI (Mumbai): AI-powered tool for beauty brands to boost loyalty, engagement, and sales.
• Vyrill (San Francisco): AI-powered video intelligence and marketing platform.
• Stack Tech Farm (Berlin): Agritech startup specializing in vertical farming.

SparkLabs: A Global Venture Capital Powerhouse

SparkLabs boasts a global presence with over 14 funds worldwide, including two funds in Saudi Arabia. They have invested in over 550 startups globally, demonstrating their extensive experience in supporting innovative companies.