A seed-stage venture capital (VC) firm focused on the Indian startup sector, Good Capital, on Friday announced its plans to deploy a new $50 million fund to back founders leveraging AI for distribution, personalisation or business operations with target cheques of up to $1.5 million over the next 4 years.

Arjun Malhotra, a Co-General (co-GP) partner at Good Capital, said that AI integration has now become a pre-requisite for any tech startup, just like the shift to mobile in the past, the success of tech businesses today depends on how they leverage AI. He added, “This isn’t an AI-focused fund as much as a recognition of a land-grab moment, where startups leveraging AI in intelligent ways will have the right to win.”

The VC firm was an early investor in successful unicorns, including Meesho and LEAD School. The company has also invested in firms such as OrangeHealth, backed by General Catalyst and Accel Partners, SimSim, acquired by Google, and SolarSquare, which raised a $13mn Series A funding led by Lowercarbon and Elevation Capital.

“We invest with deep conviction by being lead investors for every investment we make,” highlighted Good Capital co-GP Rohan Malhotra, emphasising the firm’s proactive approach in guiding startups that help contribute to the growth and success of these ventures.