Union Square Ventures Announces $900 Million in New Funds as AI Shifts Focus

Union Square Ventures announced $900 million in new funds Oct. 8 as the New York venture firm shifts its investment focus toward AI-driven markets, physical intelligence, robotics, manufacturing and energy.

The announcement did not provide a fund-by-fund breakdown or establish that all of the capital had been closed. Union Square Ventures anticipates a deal count similar to its earlier funds, while the additional capital will let it lead more rounds, back companies for longer and invest across its updated focus areas.

The firm identified four investment themes: AI applications; data obtained through physical intelligence or AI; consumer and enterprise intelligence; and energy. Robotics and manufacturing are among the sectors highlighted as requiring greater capital as AI increases competition and makes products easier to build.

“Today, we’re proud to announce $900M in new funds,” investment leaders Nick Grossman, Rebecca Kaden, Michael Mignano and Fred Wilson wrote.

The core investment team includes Mignano, Wilson, Kaden, Grossman and Nikhil Raman, along with Venture Partner Jared Hecht and Product Advisory Partner Scott Belsky. Andy Weissman, Albert Wenger, John Buttrick and Brad Burnham will continue supporting the firm and its portfolio companies.

A July 16, 2026, Securities and Exchange Commission Form D for USV Opportunity 2026, LP listed a $400 million offering that included a parallel investment vehicle. The filing reported $0 sold and $400 million remaining as of the filing.

Union Square Ventures’ 2022 funds included a $275 million core fund and a $350 million opportunity fund. The firm invests in early-stage companies through a thesis-driven approach and previously emphasized Internet infrastructure and network effects.

Its latest strategy places greater weight on AI, sensors, physical intelligence, robotics, manufacturing and energy. “Now, that takes more capital,” Grossman, Kaden, Mignano and Wilson wrote.