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The Economic Times
The Economic Times
Swathi Moorthy

Indian VCs turn to US AI startups in search of bigger returns

Indian venture capital firms Peak XV Partners, NuVentures, DeVC and Activate are increasingly investing in artificial intelligence (AI) startups founded by non-Indians, drawn by the prospect of higher returns and opportunities to deepen enterprise relationships, some investors told ET.

In 2025, Peak XV Partners invested in more than 10 US-based AI startups, including backend platform Supabase and AI analytics company PostHog, both founded by non-Indians. Activate, an AI-focused early-stage fund, has backed ElevenLabs.

DeVC invested in six US companies last year, along with Y Combinator, Andreessen Horowitz and Bain Capital Ventures. Among them is Answers.ai, founded by Zhou Li.

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