Indian Venture Capitalists Establish US Presence to Capitalize on AI Growth
Indian VCs expand US footprint to tap AI boom early
Image: The Economic Times
Indian venture capitalists are increasingly relocating to the United States to tap into the booming AI sector. Firms like Elevation Capital and Peak XV are expanding their teams in the US, reflecting a shift in investment focus towards AI, which now constitutes about 50% of investments in India.
- 01Elevation Capital has three members in the US, including AI partner Krishna Mehra.
- 02Peak XV has established an office in the Bay Area with a team that includes Arnav Sahu and Shelly Singh.
- 03AI investments are projected to account for 50% of funding in India, up from 15-20% in 2024.
- 04Indian VCs are investing in US-based startups, including those from YCombinator.
- 05Competition in the US market is intense, prompting Indian investors to establish a local presence.
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In a strategic move to capitalize on the burgeoning artificial intelligence (AI) sector, Indian venture capitalists (VCs) are increasingly relocating parts of their teams to the United States. Notable firms such as Elevation Capital and Peak XV have expanded their US operations, with Elevation Capital housing three team members, including AI partner Krishna Mehra, while Peak XV has established a Bay Area office. The trend, which began in 2025 as generative AI gained traction, reflects a significant shift in investment focus, with AI now comprising about 50% of investments in India. This is a notable increase from 15-20% in 2024. Indian investors are also actively engaging with US-based startups, particularly those from YCombinator, as they seek to understand the competitive landscape and forge connections with founders. However, the intense competition in the US market poses challenges, leading many Indian VCs to establish a presence on the ground to enhance their chances of success.
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The relocation of Indian VCs to the US is likely to enhance investment opportunities in the AI sector, potentially leading to increased innovation and growth in this field.
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