TLDR: VC firm Good Capital to invest $25 million in AI startups this financial year
- Good Capital plans to invest $25 million in AI startups in the current financial year 2024-25
- The company will focus on cleantech, e-commerce, edtech, healthtech, SaaS, and deeptech segments
Early-stage venture investment firm Good Capital announced its intention to invest $25 million in AI startups in the current financial year 2024-25. The company will primarily focus on cleantech, e-commerce, edtech, healthtech, SaaS, and deeptech segments. Good Capital intends to invest in 15-20 AI startups across early-stage and Series-A funding stages, leveraging AI and LLM models to develop new businesses through an investment strategy that supports startups empowering intermediaries.
The Indian AI market is projected to grow at a CAGR of 25-35% to hit $17-22 billion by 2027. Over $4 billion in AI investments were received in India in 2022-23, with technology, healthcare, data, analytics, and digital content segments receiving the most funding. Good Capital’s portfolio includes over 25 startups like Meesho, LEAD, Entri, and Solar Square.
Recent advancements in AI offer opportunities to bridge skill gaps, allowing intermediaries to focus on high-touch execution while AI automates complex planning tasks. Good Capital’s investment strategy focuses on startups that leverage the expertise of local intermediaries to offer services & products with low acquisition costs and high conversion rates. The firm currently manages a $100 million capital pool across three funds.
The Cabinet in March this year approved a national-level IndiaAI mission with a budget outlay of Rs 10,371.92 crore to establish a comprehensive ecosystem catalyzing AI innovation through strategic programs and partnerships across the public and private sectors. This includes improving computing access and data quality, developing indigenous AI capabilities, attracting top AI talent, enabling industry collaboration, providing startup risk capital, ensuring socially impactful AI projects, and bolstering ethical AI.
