USV sees New York as an advantage for consumer AI, but says top teams can be anywhere

A USV representative said New York can be a strategically advantageous place to build companies: the city is not at the center of AI infrastructure and can attract talent focused on consumer products and areas beyond enterprise software and infrastructure. He cited portfolio company Suno, which has offices in San Francisco and Boston but is making New York City its largest office.

Another USV representative said the shift from large-scale infrastructure building toward deployment and applications could diversify where talent and startups are based. The firm plans to invest in a relatively small number of opportunities aligned with its theses and to be where the best teams are; some will be in New York, but many will not.

On founder selection, USV said it has long been product-centric, but AI is making it easier to build a good product while winning in the market remains difficult. In the representatives’ view, founders increasingly need to be able to raise capital, hire strong teams, move quickly and tell a compelling story. One representative summarized four qualities the firm looks for: deep expertise and a distinctive perspective, the ability to attract talent, speed, and the storytelling ability to win a market before success becomes obvious.