May 5, 2024: Good Capital, an early-stage venture capital firm, which enables intermediary-led business models has committed $25 million to invest and back Indian AI startups by FY25.
The VC says they invest in companies that enable on-the-ground partners to solve this trust deficit by leveraging intermediaries to provide a high-touch, human interface to consumers
The Venture Capital company plans to make investments from Good Capital Fund II’s corpus of $50 million, which is expected to be deployed by 2027.
The VC plans to invest in 15-20 AI startups that are in the early-stage and Series-A stages. Presently, 80% of the Venture Capital’s potential startups consists of companies leveraging AI across various industries.
The VC plans to back startups engaged in cleantech, ecommerce, edtech, healthtech, SaaS, and deeptech that augment intermediaries rather than disrupt industries.
Good Capital excited about Indian AI startup growth and newer opportunities
“Good Capital holds the belief that 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,” it said in a statement.
“At Good Capital, we are committed to leveraging the inherent potential of India’s unique structure as a small-business economy. We focus on investing in startups that leverage the expertise of local intermediaries to offer services & products with low acquisition costs and high conversion rates,” said Arjun Malhotra, General Partner at Good Capital.
