Valley new base camp for desi AI startups

BENGALURU: For Indian AI founders targeting global markets, venture capital firms are increasingly pushing a clear message: move closer to the US market early. What was once an optional expansion step during the SaaS era is now becoming a core part of the AI startup playbook, as investors believe founders need to be physically present in San Francisco to stay close to customers, capital, talent, and rapidly evolving AI product trends.

“Earlier, SaaS founders would build from India and only start spending time in the US much later. Now, that shift is happening much earlier,” said Sumangal Vinjamuri, vice-president at Blume Ventures. He said founders building for North America increasingly need to be based there full-time much earlier in their journey.

VC firms are also adapting their support models around this shift. Blume is helping startups with go-tomarket strategy, hiring, fundraising, and customer introductions in the US. Investors argue that being in the Valley is no longer only about sales access, but about getting sharper signals on productmarket fit and monetisation. “US customers are much less budget sensitive and much more open to buy over-build. You get a much higher quality signal on monetisation potential,” said Krishna Mehra of Elevation Capital.

For founders who have relocated, the difference is immediate. “My market is entirely in the US, so being here materially changed the quality of customer conversations,” said Padam Kataria, co-founder of AI startup Ayden, who recently moved to San Francisco.

“In-person interactions build trust much faster and increase the likelihood of actually closing the loop.” He added that even unsuccessful meetings generate richer insights than remote calls.

Freshworks founder and Together Fund investor Girish Mathrubootham said the AI wave has fundamentally changed how startups should scale globally. “Today, I would advise at least one cofounder to either move to the US or spend significant time in the Valley, to have ears on the ground on how AI is evolving,” he said.
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