Indian VCs shift AI bets to US startups amid innovation gap at home

Indian venture capital firms like Peak XV Partners and NuVentures are putting more money into US-based AI startups.

The main reason? India’s own AI scene isn’t offering enough innovation or big returns right now.

In 2025, Peak XV alone backed more than 10 US companies, including names like Supabase and PostHog.

Indian VCs expanding US presence
Firms like Activate and DeVC are also spreading their bets, investing in projects such as ElevenLabs (voice AI) and DeVC invested in six US companies last year, along with Y Combinator, Andreessen Horowitz and Bain Capital Ventures.

According to Venk Krishnan, cofounder of NuWare and NuVentures, about 90% of their investments now head to the US because that’s where the customer connections and bigger risks (and rewards) are.

To keep up with major American investors, large venture capital firms such as Peak XV Partners and Elevation Capital have expanded their presence in the US.

While Z47 is preparing to set up operations there, with partner Aakash Kumar relocating to the region, other Indian investors, including Stellaris Venture Partners and Antler India, are also spending more time in the US. News Bytes App