The State of Vertical AI (Q2 2025)

Summary of Euclid Ventures Report

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Market Overview

$17.4B raised across 784 vertical venture financings (US & Canada)
57% of deal volume and 36% of dollars were in verticals
42% of deals > $10M, 10% > $50M
Healthcare & Financial Services: 58% of deal value, 52% of volume
Horizontal AI still takes mega-rounds, but Vertical AI leads early-stage growth

Sector Trends

Healthcare: Abridge ($300M), Commure ($200M), Tennr ($101M), Sword Health, Jane Software ($500M secondary)
Financial Services: Addepar ($230M), Altruist ($152M), Wealthbox ($200M), Juniper Square ($130M), Octaura ($47M)
Supply Chain & Logistics: Stord ($80M), Flock Freight ($60M), UniUni ($70M)
Retail & CPG: Owner ($120M), Ghost ($40M)
Hospitality & Media: Canary Technologies ($80M), Teamworks ($235M)
Legal AI: Harvey ($300M, $5B valuation), Laurel ($100M)
Education: SchoolAI ($25M), Elevate K-12 ($25M)
Construction & Trades: Miter ($23M), Remarcable ($15M), AIM ($50M)
Public Sector: Prepared ($80M), Onebrief ($20M)

Rounds of Note

Abridge – $300M → $5.3B valuation (a16z)
Harvey – $300M → $5B valuation (Kleiner Perkins, Coatue)
Commure – $200M → $3.5B valuation (GC)
Tennr – $101M (IVP)
Jane – $500M secondary at $1.8B valuation with only $10M primary
Sword Health – $40M → $4B valuation (GC, Khosla)
Nourish – $70M (AI dietitian platform)
Owner – $120M Series C → $1B valuation
Entrata – $200M → $4.3B valuation (Blackstone)

Exits of Note

vLex acquired by Clio ($1B) – legal AI
Acumatica acquired by Vista Equity (~$2B) – SMB ERP
Enfusion acquired by Clearwater Analytics ($1.5B) – asset management SaaS
Sevenrooms acquired by DoorDash ($1.2B) – restaurant software
SmarterDx rolled into New Mountain Capital ($1.5B deal) – clinical AI
PlusAI SPAC ($1.2B valuation) – autonomous trucking

Key Themes

Healthcare AI boom: scribing, referrals, nutrition, virtual care
Financial services tech: wealth, CRM, private markets
Legal AI rising: Harvey, Laurel, vLex deal
Capital efficiency valued (e.g., Jane)
Supply chain/logistics rebound
Hospitality & education showing early momentum
Consolidation & exits show vertical AI maturity

Bottom Line

Vertical AI is gaining traction with rising deal volume and early-stage growth, led by healthcare, financial services, and legal tech.
Capital efficiency is a differentiator, while exits and acquisitions highlight growing maturity in vertical ecosystems.

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