Khosla Ventures Expands to New York With First Office Outside Sand Hill Road
TL;DR
- Khosla Ventures will open its first office outside Menlo Park in New York City this fall, ending more than two decades as a Sand Hill Road-only firm.
- Partner Keith Rabois says the buildout is already underway, with the firm hiring in New York and planning a full-time partner presence on the East Coast.
- The move underscores intensifying coastal competition for AI, fintech, and health tech talent as top Silicon Valley firms deepen their bets on New York's startup ecosystem.
A Sand Hill Road Institution Heads East
For more than 20 years, Khosla Ventures has operated from a single home base on Sand Hill Road in Menlo Park, building a reputation as one of Silicon Valley's most concentrated and founder-driven firms.
That is about to change. The firm is set to open a New York office this fall, marking its first expansion beyond California and its most visible geographic bet to date.
The news confirms months of speculation about Khosla's East Coast ambitions as venture activity in New York has surged around artificial intelligence, applied research, and financial infrastructure.
Rabois: Buildout Is Already in Motion
Partner Keith Rabois, who rejoined Khosla Ventures after stints at Founders Fund and Miami-based initiatives, shared an update on the ongoing buildout this week.
According to Rabois, construction and hiring for the New York space are already in progress ahead of a fall opening. The office is expected to house investment partners full-time rather than operate as a satellite or flexible coworking footprint.
Rabois has been a driving force behind the move, having long split time between coasts and championed New York as a counterweight to the Bay Area. His return to Khosla in 2024 helped reorient the firm toward more aggressive company formation and East Coast sourcing.
Why New York, Why Now
Khosla's bet on New York reflects where the firm sees the next wave of technical founders emerging.
New York has become the second-largest hub for AI startups in the U.S., fueled by talent from Columbia, NYU, Cornell Tech, Wall Street banks, and Big Tech's growing Hudson Yards and Manhattan engineering offices. For a firm increasingly focused on AI, robotics, fintech, and health and longevity, partners see proximity as critical.
Vinod Khosla has argued that AI expertise is no longer confined to Stanford and Berkeley, and that being on the ground in New York gives the firm earlier access to applied AI in financial services, enterprise software, biotech, and energy.
The city has also become a magnet for early-stage founders priced out or burned out on the Bay Area, offering a denser mix of customers, regulators, and corporate partners — particularly in finance and healthcare.
What It Signals for Coastal Venture Competition
Khosla's arrival will intensify an already heated battle for East Coast deal flow.
Andreessen Horowitz, Sequoia Capital, Lightspeed, Index Ventures, and General Catalyst all maintain significant New York presences, turning Manhattan into a second front for Sand Hill Road rivalry. Until now, Khosla had been a notable holdout, flying partners east instead of planting a flag.
Venture insiders say a permanent office changes the dynamic, allowing Khosla to lead more New York-originated seed and Series A rounds, host founders in person, and compete more directly for partner-level talent based on the East Coast.
It also reflects a broader shift in venture geography: rather than a post-pandemic dispersal to Miami or remote, top firms are doubling down on a bicoastal model centered on the Bay Area and New York.
What's Next
The firm has not yet disclosed the exact location or size of the New York office, but Rabois indicated more details on team and opening plans will follow in the coming weeks.
If the fall launch stays on track, Khosla Ventures will enter 2027 as a bicoastal firm for the first time — a symbolic and strategic milestone for one of Silicon Valley's most storied partnerships.
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