AI.FUND for AI apps made in Europe

22 February 2024

Venture capital fund to provide up to EUR 50 million for start-ups

The German AI.Fund has earmarked EUR 35 to 50 million for start-ups in Germany, Europe and Israel with AI-based business models for a ten-year term. Around 6,300 start-ups in Europe are working on AI, according to the Applied AI Institute for Europe. Germany has the highest number of generative AI start-ups in the EU. Yet, AI is severely underfunded in Germany. The fund now aims to counteract this situation and to reduce the funding gaps in Europe and to boost the use of AI overall.

Boosting AI in Germany and Europe

“We have lots of AI talent in Europe, but we struggle with commercialization and international scaling. Using our expertise, experience, and network, we want to strengthen the willingness to innovate in AI and thus advance the technology in Germany and Europe. It is important to unite the ecosystem and pool forces for a strong, competitive German business location. Now's the time to invest in AI.”

The AI.Fund has a network of over 4,500 AI start-ups hitherto. The Munich-based Sinpex is among the first recipients of a warehousing investment with which it is advancing the automation of the complex Know Your Customer (KYC) procedure in the financial sector with AI. Sinplex is one of the market leaders and closed a EUR financing round with EUR 4 million in late 2023.

AI.FUND with focus on entrepreneurs

Founded in 2021 by investors, entrepreneurs and experts in AI, the Hamburg-based venture capital counts Ragnar Kruse and Petra Vorsteher, founders of the AI.Hamburg, the AI.Startup.Hub and the IT company Smatoo, as well as corporate investor John Lange among its members. The AI.Fund works closely with the European AI network AI.Group and the start-up accelerator AI.Startup.Hub Hamburg. The investors target mainly entrepreneurs, single or multi-family offices and companies in Germany and abroad.

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