Oct 8, 2026 · 1h 25m
USV bets bigger on early-stage AI disruption
USV’s New $900M Fund: Fred Wilson, Rebecca Kaden & Mike Mignano
USV’s new fund shows how venture firms are adapting to AI’s capital demands without abandoning concentrated, thesis-driven early-stage investing.
- 1USV plans to deploy $900 million across roughly 30 to 40 early-stage companies while preserving selectivity and concentrated ownership.
- 2The partners see opportunity across AI applications, agents, open infrastructure, energy, security, and trusted brands—not just model companies.
- 3Their “obliterate, don’t automate” thesis argues AI may bypass incumbent industries by delivering expertise directly to consumers.
Don't miss
Fred Wilson’s “obliterate, don’t automate” thesis reframes AI as a force that can bypass incumbent industries and deliver expertise directly to consumers.
The brief
USV raised its largest-ever fund, but the partners reject the idea that scale is the goal. The $900 million vehicle is meant to match larger opportunities while preserving an early-stage, thesis-driven model.
Michael Mignano argues that AI has not killed the user interface: visual structure still builds trust, communicates concepts, and helps people navigate increasingly capable products.
The partners expect AI startups to need substantial capital despite cheaper and open models, citing compute, inference, subsidized usage, marketing, distribution, and network effects.
Their opportunity map stretches from application-layer startups and personal agents to open infrastructure, energy, security, and trusted brands that can make risky systems usable.
The sharpest thesis is “obliterate, don’t automate”: AI may make previously gatekept expertise available directly to consumers, threatening incumbents that cannot easily cannibalize themselves.
Fred Wilson, Rebecca Kaden, and Michael Mignano close by emphasizing nonlinear company-building, founder adaptability, and why venture outcomes need not reach trillion-dollar scale.
Books & mentions
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