Indian venture capital firms, including Peak XV Partners and NuVentures, are increasing investments in US-based AI startups due to a lack of innovation and big returns in India’s AI scene. In 2025, Peak XV alone backed more than 10 US companies, including Supabase and PostHog. Firms like Activate and DeVC are also spreading their bets, with DeVC investing in six US companies last year, alongside 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 is where customer connections and bigger risks and rewards are. To keep up with major American investors, large firms such as Peak XV Partners and Elevation Capital have expanded their US presence. Z47 is preparing to set up operations there, with partner Aakash Kumar relocating to the region, while Stellaris Venture Partners and Antler India are also spending more time in the US.