SparkLabs launches $50M fund to support AI startups

SparkLabs, an early-stage venture capital firm, has launched a new $50 million fund named AIM AI Fund to support AI startups globally, particularly through its AIM-X accelerator in Saudi Arabia. This initiative is part of a broader national effort to enhance AI technology over the next five years. The fund aims to invest in 50 to 70 companies, with 35% of the capital allocated to accelerator participants and the remaining 65% for Series A and B investments outside Saudi Arabia. The firm has already invested in 14 startups, including viACT, IdeasLab, and Ahya, showcasing a diverse range of AI applications from workplace safety to climate software. The average investment for accelerator participants will be around $200,000, with potential increases in unique cases, while Series A and B investments will range from $1 million to $5 million. The growing interest in generative AI has led to a surge in startups, with over 210 AI unicorns emerging globally as of March 2024. Despite this global trend, the U.S. remains the leader in founding AI startups, with 4,633 established between 2013 and 2022. SparkLabs' new fund reflects the increasing demand for innovative AI solutions and the potential for significant returns in this rapidly evolving sector. The first batch of startups supported by the AIM AI Fund will be announced at the GAIN Summit in Riyadh on September 10. This event marks a significant milestone for SparkLabs and its commitment to fostering AI innovation, not just in Saudi Arabia but across the world, as it seeks to identify the next big players in the AI landscape.