The firm plans to invest in 15-20 AI start-ups across early-stage and Series-A funding stages, utilising AI and LLM models.
Good Capital, an early-stage venture investment firm, has announced plans to invest $25 million in AI start-ups by FY25. These investments will primarily target sectors such as cleantech, e-commerce, edtech, healthtech, SaaS, and deeptech. The announcement comes at a time when India’s AI market is projected to reach a whopping $17 billion by 2027.
The firm plans to invest in 15-20 AI start-ups across early-stage and Series-A funding stages, utilising AI and LLM models to create novel businesses through an investment strategy that backs start-ups empowering intermediaries rather than the global trend of “disruption.” Currently, 80 percent of Good Capital's pipeline consists of companies leveraging AI across various industries.
As per the company, the recent advancements in AI present opportunities to bridge skill gaps. This enables intermediaries to focus on high-touch execution, while AI automates complex planning tasks. Essentially, AI acts as a catalyst, enhancing the capabilities of intermediaries by managing tasks beyond their core competencies. This shift allows intermediaries to concentrate more deeply on their core strengths. Good Capital's portfolio companies like Cloudchef, Definitive, Propacity, and MyGenie exemplify this approach by leveraging AI to streamline processes and enhance decision-making, thereby empowering intermediaries to focus on delivering value-added services to their clients.
Arjun Malhotra, General Partner at Good Capital, said, "We focus on investing in start-ups that leverage the expertise of local intermediaries to offer services and products with low acquisition costs and high conversion rates."
As per Good Capital, the firm's commitment extends well beyond mere financial backing; it also brings mentorship, access to networks, and resources essential for navigating the complexities of the start-up journey to the table.
Good Capital is a venture capital firm focused on early-stage concept to Series-A investments in technology start-ups addressing India-centric challenges. Founded by brothers and co-GPs Arjun and Rohan Malhotra, their decade-long entrepreneurial journey and investment acumen in Indian start-ups underscore the firm's significant role in shaping the success of emerging businesses. The firm manages a $100 million capital pool across three funds and has invested in over 25 start-ups.