Union Square Ventures (USV) is an American venture capital firm based in New York City. Founded in 2003 by Fred Wilson and Brad Burnham, the firm focuses on early-stage investments in internet and mobile companies considered disruptive. USV has backed more than 130 startups, including Twitter, Etsy, Stripe, Coinbase, Zynga, Tumblr, Stack Overflow, Meetup, Kickstarter, MongoDB, Flurry, Cloudflare, Duolingo, Soundcloud, Clue, and Carta. In the field of artificial intelligence, USV has invested in companies such as Hugging Face, a platform for machine learning models and datasets.
History and Founding
Union Square Ventures was established in 2003 by Fred Wilson and Brad Burnham, who sought to support early-stage technology companies with disruptive potential. The firm's investment strategy has historically centered on U.S.-based internet and mobile startups, though it has expanded its scope over time. USV's 2004 fund is considered one of the best-performing venture capital funds in history, and by 2016 the firm had achieved seven exits valued at over one billion dollars, including Twitter in 2013 and Twilio in 2016. In 2011, USV was recognized as the best-performing venture capital firm in the United States based on investment return rate.
Key People and Partnerships
Albert Wenger, former president of del.icio.us, joined USV as a managing partner in 2007. Andy Weissman, co-founder of Betaworks, joined in 2011. Rebecca Kaden, previously a general partner at Maveron, joined in 2018. In 2019, Gillian Munson, former CFO of XO Group, and Nick Grossman, who had worked on special projects such as policy and crypto, became partners. In 2021, Samson Mesele, a former corporate attorney at Wachtell, Lipton, Rosen & Katz, joined as general counsel and partner.
Investment Focus and AI Portfolio
USV's investment thesis emphasizes network effects, platforms, and disruptive technologies. In recent years, the firm has increased its focus on generative AI and machine learning startups. Notable AI-related investments include Hugging Face, which provides tools for large language models and transformer architectures. USV has also invested in companies like AI21 Labs, which develops AI writing assistants, and Inflection AI, known for its conversational AI systems. The firm's approach to AI investing often targets infrastructure and developer tools, as seen in its support for Hugging Face's open-source model hub.
Recognition and Impact
USV has been regularly included in Red Herring's lists of top venture capital firms. The firm's early investments in companies like Twitter and Etsy have contributed to its reputation as a successful early-stage investor. Its 2004 fund's performance has been cited as a benchmark in the venture capital industry. USV's influence extends beyond financial returns, as it has played a role in shaping the New York City tech ecosystem and supporting open-source AI initiatives.
Recent Developments
As of 2023, USV continues to raise new funds and expand its team. The firm has shown particular interest in deep learning and neural network startups, aligning with broader trends in AI research and application. USV's investments in AI companies reflect a strategic bet on the transformative potential of machine learning across industries, from healthcare to finance. The firm's partners frequently publish essays and participate in conferences, contributing to public discourse on technology and venture capital.