SparkLabs launches $50 million fund to support global AI startups | Generative ai for finance course | Google generative ai free course | Is chatgpt generative ai | Turtles AI

SparkLabs closes a $50 million fund to support AI startups, expanding its global reach. The goal is to fund projects from the AIM-X accelerator in Saudi Arabia and other innovative AI startups. Here are the details of the new fund, the investment criteria, and the startups already involved.

Key Points:

•  SparkLabs has closed a $50 million fund to support global AI startups.
•  About 35 percent of the fund will go to startups in the AIM-X accelerator in Saudi Arabia.
•  The fund will support Series A and B investments with checks of up to $5 million.
•  The first 14 funded startups will be presented at the GAIN Summit in Riyadh.

SparkLabs, the well-known venture capital firm with a strong track record in supporting AI startups, announced the closing of a new $50 million fund, called the AIM AI Fund. This fund will be aimed at supporting emerging AI startups, with a focus on those from the AIM-X accelerator in Saudi Arabia, but also innovative startups in other parts of the world. SparkLabs, already known for funding the likes of OpenAI, Vectara, and Anthropic, has decided to step up its engagement in the AI sector to capitalize on the current boom in interest in generative AI and other advanced applications of this technology. 

In recent years, interest in AI has grown exponentially, prompting both startups and investors to look for new opportunities in this ever-expanding field. For example, according to a recent report by Edge Delta, as of March 2024 there were more than 210 AI unicorns, each with a valuation in excess of $1 billion. Despite the global nature of the phenomenon, the United States continues to dominate, with the largest number of AI startups founded between 2013 and 2022.

According to Bernard Moon, co-founder and partner of SparkLabs, 35 percent of the new fund will go to AIM-X accelerator participants, while the remaining 65 percent will be used in Series A and Series B investments in startups outside Saudi Arabia. The strategy includes geographic diversification of investments, with a significant portion going to U.S.-based startups. The SparkLabs Accelerator, launched earlier this year as part of Saudi Arabia’s national initiative to promote AI technology, will play a key role in this deal.

The AIM AI Fund aims to invest in a total of 50-70 companies, with checks for accelerator participants ranging from $200,000 to $500,000, and Series A and Series B investments between $1 million and $5 million. Moon also clarified that investments in Saudi Arabia or the MENA region will be limited to 10%-20% of the total.

The first group of startups funded by the new fund will be announced during the GAIN Summit in Riyadh on Sept. 10. Among the 14 startups already backed by SparkLabs are viACT, a Hong Kong startup using AI-based video analytics for construction site safety; IdeasLab, based in New York, which develops AI solutions for analyzing body movements without the use of sensors; and Ahya, a Pakistani startup specializing in climate software for reducing carbon emissions.

Other startups include Swirl, an Indian video platform that facilitates the connection between brands and customers through the use of AI; Contents.com, an Italian AI-based content creation platform; Orko, a Singaporean startup that manages electric vehicle fleets with the help of AI; and Layla, a German AI travel platform. SparkLabs has also invested in startups such as Roughneck AI, which develops a multimodal data platform based in San Francisco, and Arctech Innovation, a spin-off from the London School of Hygiene & Tropical Medicine that creates AI-based sensors for pest and disease detection.

With 14 global funds and two active funds in Saudi Arabia, SparkLabs has so far invested in more than 550 startups. The launch of AIM AI Fund represents a significant step in the company’s strategy to expand its global footprint in the AI sector, with an approach that prioritizes the quality of startups rather than their geographic location.

With the first batch of startups already selected and unveiled soon, SparkLabs confirms its role as a leader in funding new entrepreneurial ventures in AI, continuing to chart the course for the future of global technology innovation.