The State of Vertical AI (Q2 2025)
Summary of Euclid Ventures Report
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.