Early-stage investment firm Good Capital said it has launched its debut fund of $25 million (Rs 178.7 crore) and has already raised half of the target corpus to mark its first close.
"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," said Rohan Malhotra and Arjun Malhotra, co-founders and managing partners at Good Capital.
The Malhotra brothers had previously founded early-stage fund Investopad in 2013. Investopad has backed Meesho, HyperTrack and Autonomic.
The new fund will seek to make investments across pre-Series A and Series A stages with a ticket size of $100,000 to $2 million.
Good Capital's investment committee includes Sanjay Kapoor, senior adviser at the Boston Consulting Group and a former CEO at Bharti Airtel Ltd; Rahul Khanna, co-founder of venture debt firm Trifecta Capital; and Kashyap Deorah, a serial entrepreneur.
The launch of the fund is good news for startups in India as deal volume has fallen from the highs of the boom year of 2015 even as a bunch of domestic early-stage VC firms have emerged. Still, investors argue that 2015 was a one-off year and they have become more selective in their investments now.
Domestic early-stage venture capital firms which are on the road to close their new funds include Blume Ventures, Endiya Partners and India Quotient.
Earlier this year, Sequoia Capital India floated a separate seed fund as the marquee investor sought to sharpen its focus at different stages of investment.