Good Capital, has unveiled its plans to launch a new fund worth $50 million. The fund aims to invest in startups who are utilizing artificial intelligence (AI) in areas such as distribution, personalization, and business operations. Over the course of the next four years, Good Capital intends to offer target investments of up to $1.5 million to eligible startups.
The early seed-stage venture capital firm has invested in successful unicorns like Meesho and LEAD School, and has built a reputation as an early supporter of promising startups. The firm has also made strategic investments in companies like OrangeHealth, which received backing from General Catalyst and Accel Partners, SimSim, acquired by Google, and SolarSquare, which secured a $13 million Series A funding round led by Lowercarbon and Elevation Capital.
Arjun Malhotra, Co-General Partner at Good Capital, emphasized the growing importance of AI integration for tech startups. He compared it to the transformative shift towards mobile technology that occurred in the past, stating that the success of today’s tech businesses relies heavily on their ability to leverage AI effectively. He further clarified that while the fund isn’t solely focused on AI, it recognizes the critical moment for startups that utilize AI in innovative ways, offering them a competitive advantage.
Good Capital to tap opportunities in underserved markets
The company is open to un-intuitive and contrarian ideas and support founders who are building off these unique learnings, especially in the non-attractive markets. The firm believe the best opportunities are in directions where no one else is looking.
Rohan Malhotra, another Co-General Partner at Good Capital, emphasized the firm’s approach of being lead investors in every investment they make. This proactive strategy reflects their commitment to guiding and supporting startups that contribute to overall growth and success.
According to the partners the founding philosophy of the company “While we don’t have a sector-specific focus, we tend to invest in technology products solving India-centric problems. We’re generally quite excited about software that can enable middlemen, traders, and micro-SMEs through technology – Meesho and Wealthy are two examples from our portfolio. Good Capital believes that empowering existing industries with technology (rather than disruption) is a superior approach for the local market.”
