The State of Vertical AI (Q2)
Harvey, Abridge, Commure, Stord, Owner, Entrata, and More
Q2 2025 saw $17.4B in vertical venture financings in the US and Canada.1 These 784 deals represented 57% of relevant raises2 by volume and 36% by dollars. 42% of vertical deals were >$10M, and 10% were >$50M. Per usual, Healthcare and Financial Services represented by far the largest share of both deal value (58%) and volume (52%).
While vertical financings as a share of total VC financing value (36%) still lagged horizontal, the growing share of vertical deals by volume (57%) speaks to the ascendancy of the model, with much of the earlier stage activity centering around Vertical AI. Mega rounds for generalist AI platforms are likely to continue to weight anchor dollar shares toward horizontal for the foreseeable future (this effect was especially apparent in Q1).
Beyond the typical dominance of Healthcare, the comparable heft of Financial Services deals was notable this quarter. This swing was anchored by large rounds from the likes of Plaid, Addepar, and a range of other private wealth growth deals as covered below. Supply Chain & Logistics also saw a resurgence, with big rounds from Stord and Flock Freight, amongst others. Retail & CPG, Hospitality, and Media & Entertainment showed the most relative growth amongst verticals, driven by deals like Teamshares, Ghost, Owner, Canary, Ghost Kitchens, Everytable, and Krea. While Education saw a few great deals like SchoolAI and Elevate K-12, few growth stage platforms took in capital. Legal saw the most significant drawback in deal value captured—despite solid raises from the likes of Harvey and Laurel, overall deal counts in the space skewed very early stage in Q1.
We run the above analysis as a rough proxy for momentum across verticals.3 Q2 saw higher relative activity in Real Estate, Education and Hospitality. The most overweight toward later-stage was Public Sector and Life Sciences. This approach isn’t perfect in low-volume verticals (which can be swayed by 1 large late-stage deal, as in Retail & CPG above) but it’s an worthwhile data point. For us, it foots to less competitive, potentially more greenfield markets.
One final question on our minds this quarter: as Vertical AI composes more and more of this dataset, will we see capital efficiency affect downstream funding? From our perspective at Euclid, founders are indisputably doing more with less… but as of yet, they still seem to be opting into “kingmaker” VC rounds post-Series A. Perhaps we will begin to see more examples like Jane from this quarter: businesses that achieve scale—and still bring on growth partners—but minimize dilution along the way (see more on Jane below). The counter-balance to this possible future, of course, is the desire to be the AI-native first-mover in a vertical.
I. Rounds of Note
The Race to the First Vertical AI-Native Decacorn
Abridge. After a $30M round in late 2024 and a $150M round in February, Abridge vaulted to a $5.3B valuation with a fresh $300M infusion from a16z (with participation from Khosla). Continuing its rapid ascent as an AI medical scribe and clinical documentation platform, the company as raised nearly $800M to date. The company has an interesting unfolding dynamic with EHR leader Epic worth noting. Its early partnership was in many ways a potential moat (Epic being both notoriously dominant and sharp-elbowed). But last week, Epic announced its plans for a proprietary healthcare scribe. Shortly thereafter, Abridge announced a partnership with Highmark to launch prior auth solutions—how coincidental. Founded in 2018, its other backers include IVP, Lightspeed, Redpoint, CapitalG, CVS, Bessemer, USV, and early strategic partners like UPMC. This is the second quarter in a row Abridge has made the Review—and it very well might again before 2025 is done.
Harvey. 4 months after getting marked up to $3B, Harvey raised $300M more, taking its valuation to $5B. With ~$816M raised to date, the business is clearly making a play to suck the air out of the room in legal AI. Its backers span Sequoia, OpenAI’s Startup Fund, Kleiner Perkins, GV, Coatue, and noted angels like Elad Gil and Jeff Dean. Founded in 2022, Harvey emphasizes its expansion beyond core “associate-grade” work into workflows that reduce partner review cycles. The recent capital is aimed at scaling global deployments and verticalizing models for adjacent professional services.
New Vertical AI Unicorns
Owner. In May, Owner announced a $120M Series C at a $1.0B valuation co-led by Meritech Capital and Headline. Owner helps independent restaurants own their digital channels with websites, online ordering, CRM/loyalty and marketing automation. With ~$179M raised to date since its 2020 founding, the company will use the capital to scale product and AI for demand generation and operations. The round cements Owner as a primary alternative to marketplace take-rates as direct ordering gains share.
Teamworks. In June, Teamworks announced a $235M Series F at a $1.0B+ pre-money valuation led by Dragoneer (a mix of primary and secondary). Teamworks provides an “operating system for sports” spanning personnel/talent, performance, coaching/analytics, and operations for 6,500+ pro, college, and Olympic teams. With ~$400M raised to date since its 2004 founding, Teamworks was not AI-native, but it’s working to change that. The company will use the capital to accelerate AI-powered features and expand its data science team, amongst other things. The financing follows a push into M&A (e.g. Telemetry Sports) to cement its lead.
The Healthcare AI Bonanza Continues
Commure. Abridge isn’t the only Vertical AI player going after the massive enterprise HC market. Commure raised $200M from General Catalyst in June, bringing its valuation to ~$3.5B. With ~$2.1B raised to date, the hyper-funded platform seeks to be the healthcare AI infrastructure layer across hospitals and large systems, spanning both the scribe space (“ambient documentation”) and revenue operations. Beyond GC, backers include Sequoia, Nvidia’s NVentures, 8VC, Lux, and (again) UPMC-linked capital. Founded in 2017, Commure is more RCM-centric than Abridge perhaps making it less directly threatening to EHRs and ecosystem integration partners. GC’s investment came through its Customer Value Fund, which the company says is structured in a way to minimize dilution.
Tennr. Another key player in the healthcare AI automation space—albeit younger and more AI-native than Commure—is Tennr, which in June announced a $101M Series C at a $605M valuation led by IVP. Additional participation came from a16z, Lightspeed, GV, ICONIQ, Foundation Capital and Frank Slootman. Tennr automates patient-referral workflows for specialist practices by reading unstructured documents, routing pre-visit tasks and reducing denials. With ~$162M raised to date since its 2021 founding, the company will use the capital to expand products, scale go-to-market and build out Tennr Network to connect referrers, providers and patients. The round came just two quarters after its $37M Series B as providers lean into pragmatic AI for intake and referrals.
Jane. While we don’t normally report on secondaries in the Vertical Review—much less reported vs. closed deals—this one is worth noting. In May, Jane Software was reported to be finalizing a ~$500M secondary at a $1.8B valuation led by TCV, with existing shareholders selling stock rather than the company issuing new equity. The Canadian startup provides practice-management software—booking, charting, billing, payments and telehealth—for allied-health clinics (more Tenner than Commure in terms of customers). Jane has only raised ~$10M in primary capital since its 2012 founding: the company remains largely bootstrapped. It’s a notable case of a Vertical AI leader (though not native per se) achieving significant scale without the dilution we’re used to seeing. A story we expect more of in editions to come.
Sword Health. In June, Sword Health raised $40M at a $4B valuation led by General Catalyst, with participation from Khosla, Comcast Ventures, and others, reminding us that B2B2C healthcare models are still on a tear, with new breath from AI. Sword delivers AI-assisted virtual MSK therapy for employers and health plans and is expanding into behavioral health. With ~$380M raised to date since its 2015 founding, the company will use the capital to grow its AI Care platform, pursue M&A and expand globally. Concurrent with the deal, Sword launched Mind: an always-on AI mental-health product. Management shared its rumored IPO is unlikely before 2028.
Nourish. In April, Nourish announced a $70M Series B that vaulted it past a $1B valuation, led by JPM Growth with participation from Atomico, G Squared, PineGrove and returning backers including Index, Thrive, and YC. Nourish connects patients with registered dietitians for virtual, insurance-covered nutrition care, including GLP-1 companion programs. With ~$115M raised to date since its 2021 founding, the company will use the capital to expand its RD workforce, deepen payer-employer partnerships and build AI tooling. The financing reflects tailwinds for functional and integrative medicine as payers seek cost-effective chronic-care interventions. Also an interesting one to watch as we consider the evolution of the vertical business-in-a-box model, which has been popular in healthcare of late.
Superpower Health. In April, Superpower raised a $30M Series A led by Forerunner Ventures. Superpower is building a consumer “health super-app” that pairs biannual advanced labs and longitudinal data with AI and human care teams for proactive health. With ~$34M+ raised to date since its 2023 founding, the company will use the capital to grow product/engineering and expand access (including employer channels) and acquisitions. Early traction and roll-ups (e.g., Base) hint at a full-stack strategy in the longevity-focused care, which has been a rising area of VC interest.
CertifyOS. In June, CertifyOS announced a $40M Series B led by Transformation Capital, with General Catalyst, Upfront and SemperVirens participating. CertifyOS provides API-first provider data, credentialing, enrollment and network management for payers and digital health companies. With ~$69M raised to date since its 2021 founding, the company will use the capital to scale engineering and go-to-market. Payers’ focus on accurate provider data and faster time-to-contract underpins the tailwind.
Professional Services AI Flourishes
Addepar. Addepar raised $230M in a round in May led by Vitruvian Partners with returning backers WestCap, 8VC and Valor Equity Partners, valuing the business at $3.3B. With ~$725M raised to date, the raise reinforces its bid as the leading independent OS for wealth management, with a focus on aggregating and analyzing complex portfolios for RIAs, family offices, and institutions. A pre-LLM business founded in 2009, the company has focused new capital on global expansion, analytics, and AI productivity features to stay ahead of incumbent custodian stacks.
Altruist. In another vote of confidence for the fast-growing wealth advisory market, Altruist raised a $152M Series F led by GIC, with participation from insiders Salesforce Ventures, Geodesic, ICONIQ Growth. With ~$609M raised and a fresh valuation of $1.9B, the company serves nearly 5k advisors and has 3x’d AUM the last 2 years. Its product bundles custody, trading, and deeply integrated advisor workflows. Founded in 2018, Altruist will use proceeds to accelerate product and upmarket distribution.
Laurel. In June, Laurel announced a $100M Series C led by IVP with participation from GV and 01A. Laurel (formerly Time by Ping) is an AI time platform that automates time capture and links time to business outcomes for legal, accounting and consulting firms. With ~$153M raised to date since its 2016 founding, the company will use the capital to scale R&D and go-to-market and broaden beyond legal. The raise signals growing demand for “time intelligence” as firms operationalize AI.
Wealthbox. In June, Wealthbox announced a $200M strategic majority investment from Sixth Street Growth. Wealthbox is a modern CRM for financial advisors/RIA firms, integrating with the wealthtech stack across custodians, planning and portfolio tools. With ~$231M raised to date since its 2014 founding, the company will use the capital to scale product (including AI), distribution and potential M&A. The transaction signals aggressive competition with incumbent CRMs in wealth management.
Juniper Square. In June, Juniper Square announced its Series D round: a $130M raise at a led by Ribbit Capital, plus backers Fifth Wall, Redpoint, Blue Owl Capital and others, that brings it into unicorn status ($1.1B valuation). While fund admin may not be the sexiest or biggest professional service, it’s certainly lucrative at the top end of the market. Juniper aims to be the “OS for private markets” with hooks into both GPs and LPs. While its beachhead was CRE, it’s expanding into PE and VC. With ~$431M raised since its 2014 founding, the company will use the capital to build out (surprise) AI copilots for admin / reporting, in addition to potential tuck-ins. It will be interesting to see how they fare in a tougher alternatives fundraising environment across the board.
Octaura. In June, Octaura raised $47M from existing and new strategic investors: founding backers Bank of America, Citi, Goldman Sachs, J.P. Morgan, Morgan Stanley, Wells Fargo and Moody’s, plus new investors Barclays, Deutsche Bank, BNP Paribas, Apollo / Motive Partners, MassMutual Ventures and OMERS Ventures. Octaura runs an electronic trading, data and analytics platform for syndicated loans and (soon) CLOs. Consortium momentum suggests the digitization of private credit markets is finally breaking through.
Empathy. In May, Empathy announced a $72M Series C led by Adams Street Partners with participation from General Catalyst, Index Ventures, Entrée, Brewer Lane, SemperVirens, Latitude and LionTree. Empathy provides bereavement and estate support to families. While you might not think of it as related to professional services, its biggest distribution channel is life insurers (which overlaps heavily with the wealth advisory world), in addition to employers. With ~$162M raised to date since its 2020 founding, the company will use the capital to expand its benefits suite (including LifeVault) and deepen insurer partnerships. The raise follows brisk enterprise adoption as grief support becomes a mainstream workforce benefit.
Survival of the Fittest in Supply Chain
Stord. In May, Stord announced an $80M Series E at a $1.5B valuation led by Strike Capital, with participation from Baillie Gifford, G Squared, and existing backers Kleiner Perkins, Founders Fund, Lux, and others (plus $120M in growth debt from SVB and ORIX). Stord provides commerce enablement for omnichannel brands, combining high‑volume fulfillment and transportation with OMS / WMS and post‑purchase software. With ~$525M raised to date since its 2015 founding, the company will use the capital to scale its network and software, accelerate AI capabilities, and pursue selective acquisitions. The raise follows sustained profitability in 2024 and recent tuck‑ins of ProPack Logistics and Pitney Bowes’ e‑commerce fulfillment unit, as Stord pushes to consolidate share among mid‑market brands. Along with a debt refinancing for Summit-backed ShipMonk ($525M raised to date), this marks a recent uptick in tech-enabled warehouse / 3PL.
Flock Freight. In May, Flock Freight announced a $60M Series E led by O’Neil Strategic Capital, with participation from Susquehanna Private Equity Investments, SignalFire, GLP Capital Partners, Bracket Capital, and others. Flock runs a shared-truckload brokerage that pools LTL/partial shipments into terminal-free, multi-stop truckloads via its FlockDirect software and optimization engine. With ~$460M raised to date since its 2015 founding, the company will use the capital to expand its STL network, deepen enterprise integrations and cargo security, enhance AI-driven pooling/pricing, and hire key talent. The raise comes amid a soft freight market; management points to a consistently growing double-digit gross-margin profile and a continued focus on STL rather than broader brokerage pivots.
UniUni. In June, UniUni announced a $70M Series D co-led by Bessemer Venture Partners and Sinovation Ventures, with participation from Redpoint, DCM Ventures, and others. UniUni runs a tech-enabled last-mile delivery network for e-commerce across the US and Canada, serving marketplaces like Temu and Shein with a gig-driver model and automated sorting. With ~$202M raised to date since its 2019 founding, the company will use the capital to add warehouses, invest in AI, and expand its delivery footprint. Management has floated a late-2025 / early-2026 IPO timeline.
Ghost. In October 2024, Ghost announced a $40M Series C led by L Catterton, with participation from USV, Cathay Innovation, Equal Ventures and Eniac. (PR Newswire) Ghost runs a members-only B2B marketplace that lets brands and retailers buy and sell surplus and wholesale inventory with brand-control guardrails, logistics support and data-driven matching. (PR Newswire) With ~$100M raised to date since its 2021 founding, the company will use the capital to deepen AI capabilities, expand internationally and scale its infrastructure and go-to-market. (PR Newswire, PitchBook) The raise highlights ongoing demand for discreet, controlled channels to move excess goods as consumer brands rebalance inventory post-pandemic. While certainly supply chain, we see this primarily as a vote of confidence for the emerging bloom in vertical retail opportunity.
Kargo. In June, Kargo raised an $18M Series B led by Matter Venture Partners. Kargo builds AI-powered “dock door” infrastructure (Kargo Towers) that captures pallet / parcel data to automate receiving, inventory and yard ops. With ~$49M raised to date since its 2019 founding, the company will use the capital to develop new AI products and scale deployments with enterprise shippers and 3PLs. Instrumentation of physical flows is a pragmatic wedge as warehouse robotics cycles elongate.
Continued Appetite for Construction & Trades
Entrata. In May, Entrata announced a $200M minority investment at a $4.3B valuation from Blackstone. Entrata is an OS for multifamily communities spanning marketing, leasing, payments, accounting and resident services. With ~$707M raised to date since its 2003 founding, the company will use the capital to accelerate AI-driven pricing/ops, expand internationally and pursue M&A. Despite the choppy housing backdrop, Entrata is a very interesting story to follow in the Vertical world: both as a disruptor of old 800-lb gorillas in the space like Yardi and Realpage, but also as a barometer for the effectiveness of pre-LLM growth-stage businesses to adopt and benefit from AI vs. more AI-native potential competitors.
Miter. In May, Miter raised a $23M round led by Bessemer Venture Partners (CEO Conor is an alum of the firm). Miter is a contractor-focused OS unifying payroll, timekeeping, expenses/per diems, job costing and compliance. With ~$38M raised to date since its 2021 founding, the company will use the capital to scale product and support for large construction/service contractors. Vertical HCM remains attractive as field ops and finance converge on a single workflow.
Remarcable. In June, Remarcable announced a $15M Series A led by Insight Partners. Remarcable provides construction material management software for trade contractors, unifying procurement, supplier EDI/API, inventory/tool tracking and prefab workflows. With ~$18M raised to date since its 2017 founding, the company will use the capital to accelerate product (including AI), expand supplier integrations and grow go-to-market. Penetration among top electrical contractors suggests a beachhead for broader trades.
AIM. In June, AIM Intelligent Machines raised $50M from investors including Khosla Ventures, General Catalyst and Human Capital. AIM retrofits heavy construction and mining equipment to operate autonomously, offering modular hardware+AI for earthmoving fleets. With ~$91M raised to date since its 2021 founding, the company will use the capital to expand its Washington facility, hire and scale deployments. It’s a timely bet on autonomy as contractors grapple with labor shortages and productivity gaps.
Other Verticals
SchoolAI. In April, SchoolAI announced a $25M Series A led by Insight Partners with participation from existing backers. SchoolAI provides an AI platform for teaching and learning—teacher copilots, tutoring games, and student “Spaces”—used across hundreds of districts. With ~$32M raised to date since its 2021 founding, the company will use the capital to expand district adoption and build out data infrastructure. SchoolAI follows a strong round from MagicSchool last quarter.
Elevate K-12. In May, Elevate K-12 secured $25M in growth financing from Trinity Capital. Elevate provides live, synchronous instruction from certified teachers to district classrooms, addressing teacher shortages across core subjects. With ~$65M raised to date since its 2015 founding, the company will use the capital to expand footprint and enhance delivery quality.
Prepared. In May, Prepared announced an $80M Series C led by General Catalyst with participation from a16z and First Round. Prepared delivers assistive AI for emergency response, from non-emergency triage voice assistants to AI copilots for 911 call-taking and post-incident workflows. With ~$130M+ raised to date since its 2019 founding, the company will use the capital to expand deployments and invest in core research. Adoption is accelerating as agencies modernize NextGen 911 under tighter staffing.
Canary Technologies. In June, Canary raised an $80M Series D at ~$600M valuation led by Brighton Park Capital, with participation from Insight Partners, F-Prime, Thayer Ventures, Y Combinator and Commerce Ventures. Canary provides an AI guest-management platform for hotels (check-in/checkout, messaging, upsells, digital tipping and payments). Canary now serves 20k+ hotels across 100+ countries. With ~$175M raised to date since its 2018 founding, the company will use the capital to scale globally and ship new AI voice / chat products.
Onebrief. In June, Onebrief closed a $20M Series C extension led by Battery Ventures at a $1.1B valuation, following a $50M Series C three months prior. Onebrief is collaborative planning software for military staffs, replacing PowerPoint / SharePoint with a real-time operational planning environment. With ~$123M raised to date since its 2019 founding, the company will use the capital to scale engineering and classified-network deployments.
II. Exits of Note
vLex ($1B, Clio). In June, vLex announced its acquisition by Clio for $1.0B in a cash-and-stock deal. vLex provides a global legal information platform that uses AI to connect to publishers and help lawyers extract and search across legal documents worldwide. vLex will join Clio’s cloud suite to integrate research natively into practice management and accelerate AI-assisted workflows. Founded in 1998, the company has been traded and rolled up a few times (buyout by Oakley in 2022, combination with Fastcase in 2023). This marks continued consolidation in legal tech as established sponsor-backed platforms compete with AI-first entrants like Harvey.
Acumatica ($2B, Vista). In May, Acumatica agreed to be acquired by Vista Equity Partners for a reported ~$2B. Acumatica offers cloud ERP for SMBs across financials, distribution, manufacturing and service. With ~$65M raised to date since its 2008 founding, the exit is simultaneously a relatively capital-efficient story and a window into the challenges of speed-to-market in manufacturing software.
Enfusion. In April, Enfusion was acquired by Clearwater Analytics (CWAN) for $1.5B. Sellers included FTV Capital and ICONIQ Growth. Enfusion provides a SaaS investment management platform that unifies front-, middle-, and back-office workflows and data for asset managers. With ~$544M raised to date since its 1997 founding, the company will be integrated into Clearwater’s platform to accelerate a cloud-native front-to-back investment management stack. The company IPO’d in 2021 following a growth round from ICONIQ and a 2017 round from FTV and Hillhouse. This follows CWAN’s acquisitions of Beacon Analytics ($560M) and Bistro Software ($160M) in Q1.
Sevenrooms. In June, Sevenrooms was acquired by DoorDash (DASH) for $1.2B. Sellers included PSG, Comcast Ventures, Amazon Alexa Fund, and others. Sevenrooms builds reservation and guest-management software for restaurants—combining CRM, bookings, marketing and guest experience tools. With ~$75M raised to date since its 2011 founding, the company will be integrated into the DoorDash Commerce Platform to help merchants drive in-store sales, strengthen customer relationships and boost profitability. The deal marks a step by DoorDash into the full-stack restaurant software game, and perhaps into more direct competition with the likes of Toast and Owner.
Smarter Technologies. Announced in May, Smarter is the result of an interesting 3-sided, sponsor backed deal reminiscent of Commure’s origins. New Mountain Capital facilitated the acquisition and tuck-in of SmarterDx to a larger platform. The parts of the whole include:
SmarterDx: Clinical AI that analyzes charts to surface missed billing and quality assurance opportunities. High-growth, NYC-based startup backed by top VCs.
Thoughtful.ai: Automates RCM tasks like insurance eligibility checks, prior authorizations, and claims processing. Smaller portco of New Mountain’s.
Access Healthcare: RCM services provider anchoring the new platform. Mature, with 25k employees and $120B in annual provider revenue under management.
SmarterDx, the exited startup in this case, focused on analyzing patient charts with physician-built models to surface missed diagnoses and generate evidence-backed appeals. With a last known valuation of ~$325M, its cap table included BVP, Sequoia, and of course, lead sponsor / deal facilitator New Mountain. It was a $1.5B deal overall but purchase price on SmarterDx specific was unavailable.
PlusAI. In May, Plus announced its plans to go public via SPAC, giving the autonomous trucking software company a pre-money of $1.2B with expected proceeds of $300M. With ~$529M raised to date, Plus partners with OEMs and fleets to retrofit long-haul trucks with Level-4-ready autonomy. Investors include Sequoia, Lightspeed, Mayfield, Hedosophia, SAIC, and strategic logistics players. Founded in 2016, the company is leaning on a software-heavy, hardware-light go-to-market, with expansion into manufacturing. It’s the second recent SPAC deal in the AV space, following Kodiak Robotics—signaling investor bets on public appetite for the trend (and of course, investor desire for liquidity). More broadly, one has to ask themselves… are SPACs back? Is that a good thing?
Thanks for reading Euclid Insights! As a reminder, we partner with Vertical AI founders at inception. If anyone in your network is working on an idea in the space, we’d love to be helpful—drop us a line on LinkedIn or in the comments below.
While up nearly 50% from our Q1 numbers, much of this had to do with our filtering of deals. We will be able to properly comment on quarterly growth going forward.
>=$1M rounds raised (closed or announced-closed) by software & tech-enabled healthcare startups in the US and Canada in Q2. We generally exclude multi-B generalist AI deals to avoid skewing takeaways. That was only one this quarter: ScaleAI ($1.4B).
We calculate table values as follows: (for each vertical, # deals in given deal size range / total # of deals in that vertical) - average % share of # deals in that deal size range across all vertical financings. So a +20-30% in $1-5M would indicate relatively more deals in that bucket for said vertical, vs. all peers across verticals (and would should up on the heatmap chart as dark blue).