India: Investopad founders launch early-stage VC firm Good Capital

Good Capital founders Rohan & Arjun Malhotra

Investopad founders Rohan & Arjun Malhotra have launched Good Capital, a new venture capital firm that targets pre-seed to Series A investments across a broad range of industries in India, according to a statement.

The firm has already completed the first close of its debut fund at $12 million, backed by London-listed Symphony International Holdings, a host of European family offices, and a number of Silicon Valley entrepreneurs.

Good Capital aims to raise $25 million for the debut fund.

The new VC firm is different from Investopad, which the Malhotra brothers launched in 2014. Investopad backs early-stage technology product firms focused on India-centric problems and cross-border opportunities.

In a statement, Good Capital said it targets pre-seed to Series A investments. It is sector agnostic and will invest in both B2C and B2B opportunities.

The founders said Good Capital will look to make investments between $100,000 and $2 million across pre-seed to Series A companies, backing entrepreneurs who take a bottom-up approach to problem-solving and values first-principles thinking.

Good Capital has already made two investments through this fund into SimSim, a video-based ecommerce platform that seeks to replicate offline consumption behaviour online, and Spatial Inc, a cross-reality platform that addresses the future of the distributed workplace.

“Good Capital gives us the opportunity to provide meaningful capital and access to the companies that we are backing. We are thrilled to bring on some of the best-in-class institutional investment firms and Silicon Valley entrepreneurs to be a part of the early-stage opportunity in India,” the Malhotra brothers said.

Rohan and Arjun, aged 31 and 29, respectively, are the youngest GPs in the ecosystem and have drawn some non-traditional LPs to the venture capital ecosystem in India, including Symphony International Holdings Ltd, which is led by Anil Thadani, who founded one of Asia’s first private equity businesses and has been investing in the region for more than 30 years.

Good Capital will be overseen by an investment committee of Sanjay Kapoor, former CEO of Airtel and now a senior advisor at BCG; Rahul Khanna, former managing partner at Cannan Partners and now founder of Trifecta Capital; and serial entrepreneur Kashyap Deorah.

Meanwhile, Investopad’s first fund portfolio stands at a gross IRR of 138.3 per cent and nine of its 12 investments have realised returns, with every dollar invested already returned. This portfolio includes companies like Meesho (now backed by Facebook, Naspers, Sequoia and SAIF), Autonomic (acquired by Ford) and HyperTrack (now backed by Founders Fund, Social Capital and Nexus) among others.

Recently, entrepreneur-turned-angel investor Sanjay Mehta has floated a new venture capital firm, 100X.VC, to invest in early-stage startups. 100X.VC looks to invest in 100 early-stage startups in a span of one year.