July 26, 2025
5 min read
Chris Metinko
Agentic AI startups attract nearly B in funding as they transform enterprise workflows and boost human productivity.
1. Agentic AI or bust

- Enterprise AI agents are now being applied to long-running workflows that can span more time and require multiple outside actions to complete.
- Vertical AI agents that serve specific sectors like legal and tax are drawing bigger dollars than horizontal agents that address multiple industries. Yes, but: Startups will see how many customers renew over the next 12 months, and that renewal rate will show if enterprises have found AI agents to be useful, says Bhavan Suri, a William Blair managing director.
- Suri compared the coming period to late 2021 and early 2022, when many work-from-home collaboration tools faced a reckoning as the pandemic lessened and large enterprises cut back on user seats.
- Companies like Zoom saw their share price drop, and startups like Hopin eventually sold off assets. What they're saying: Better training models and improved reasoning capabilities will keep agentic AI platforms advancing, says Danel Dayan, a principal at Battery Ventures.
- "It's hard to hit the bull's-eye with the pace of change," says Dayan. Reality check: Despite the excitement around agentic AI, the technology is not replacing humans, according to industry operators, but making them more productive and keeping them in the loop as to what the agents do. Yes, but: It seems very likely to get to that place. What's next: "There will be upheaval in a world of unlimited agents," says Ted Smith, co-founder and president of investment bank Union Square Advisors. "Business models will change in an unfettered AI agent world, but 'how' is the question." Original Source
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