Fred Wilson says USV wants to invest the funds in four areas.
Fred Wilson says USV has “filled the gas tank again” and that this tank is bigger. He points to four areas the firm wants to invest the funds in.
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Union Square Ventures announced $900 million in new funds to back startups “at the edge of large markets being transformed by technology.” The firm is increasing its firepower while keeping roughly the same investment pace as its previous funds.
USV said its last core fund was $275 million. The firm argues that AI has changed the economics on both sides of venture capital: founders can build products faster and with smaller teams, but competition for the strongest companies has pushed rounds and prices higher. The larger pool is meant to let USV lead more rounds, keep supporting companies for longer and pursue capital-intensive businesses in robotics, manufacturing and energy.
Partner Nick Grossman described the capital as backing companies “from inception to momentum.” Fred Wilson put it more colorfully, saying USV had refilled its “gas tank” and pointing readers toward four areas where the firm wants to invest.
The first is application-layer AI. USV says it is looking for companies that do more than automate existing work and instead reshape entire markets.
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The second is what the firm calls “Data at the Edge.” That includes businesses using physical intelligence or AI to collect and unlock offline data that was previously difficult to reach. USV places robotics, manufacturing, sensor networks and companies that connect online systems to the physical world in this category.
The third thesis, called “The Rebel Alliance,” focuses on products that offer increasingly capable intelligence while giving customers stronger alignment on trust, security, memory and cost.
The fourth is energy. USV began investing through a dedicated energy fund in 2021 and now plans to fold that strategy into its core fund, arguing that broader AI development will require substantially more power.
USV also detailed changes to its partnership. Michael Mignano, the co-founder of Anchor, is now a general partner. GroupMe and Fundera co-founder Jared Hecht is a venture partner, while Behance co-founder and former Adobe chief product officer Scott Belsky is a product advisory partner.
They join Fred Wilson, Rebecca Kaden, Nick Grossman and Nikhil Raman on the core investment team. Andy Weissman, Albert Wenger, John Buttrick and Brad Burnham will continue supporting USV and its portfolio companies.
The announcement frames the strategy as an update to USV’s original bet on businesses built atop internet infrastructure. In 2026, the firm says it is making a similar bet on intelligence, but with a much larger tank.
@mignanohttps://x.com/i/article/2108182027778269184
@nickgrossmanJust another day at the office @usv -- but excited to announce our latest set of funds: $900M in new capital to back startups from inception to momentum, at a moment when many large markets are about to be transformed.
@albertwengerExcited for this next iteration of @usv!@mignanohttps://x.com/i/article/2108182027778269184@nickgrossmanJust another day at the office @usv -- but excited to announce our latest set of funds: $900M in new capital to back startups from inception to momentum, at a moment when many large markets are about to be transformed.@albertwengerExcited for this next iteration of @usv!@mignanohttps://x.com/i/article/2108182027778269184@nickgrossmanJust another day at the office @usv -- but excited to announce our latest set of funds: $900M in new capital to back startups from inception to momentum, at a moment when many large markets are about to be transformed.@albertwengerExcited for this next iteration of @usv!@mignanohttps://x.com/i/article/2108182027778269184@nickgrossmanJust another day at the office @usv -- but excited to announce our latest set of funds: $900M in new capital to back startups from inception to momentum, at a moment when many large markets are about to be transformed.@albertwengerExcited for this next iteration of @usv!
