August 14, 2025

Code red

Hi there,

On August 19th, our analysts will break down how enterprises are building AI agents that actually work.

Unpack the complete stack powering today's most advanced agents, explore key enterprise use cases, and get a live view of CB Insights' agents in action.

And now, here is this week's Hot or Not.

Hot: Coding agents

Anthropic's Claude Code has reportedly hit $400M ARR in just 5 months.

Of the top pure-play AI agents by revenue, 4 out of 8 are software development platforms: Cursor leads with $500M ARR, followed by Replit and Lovable at $100M ARR, and then StackBlitz — demonstrating coding's dominance in monetizable AI applications.

Track the fastest-growing coding AI startups in CB Insights' AI agent revenue ranking.

Not: Traditional SEO

Generative engine optimization (GEO) startups are eating traditional SEO's lunch as brands pivot to AI-powered search.

Profound, the leading company in the market based on CB Insights Mosaic health scores, raised a $35M Series B led by Sequoia this week.

These companies are building tools to monitor brand visibility in AI-generated answers and optimize positioning across AI interfaces.

Nearly 40% of players in this market have launched in the last 2 years, and other early leaders like Daydream and Peec AI are gaining traction from major investors and brands.

See which GEO startups are redefining search in CB Insights' agentic commerce report.

Hot: Voice-first everything

Major tech companies are scrambling to own voice interfaces:

Oracle just launched its "voice-first" EHR where clinicians navigate using voice commands instead of clicks.
Apple is perfecting App Intents that will let Siri control your entire phone hands-free.
Meta acquired PlayAI last month.

Voice AI development startups have raised $371M in funding so far this year, matching all of 2024, as momentum builds across the landscape for conversational AI applications.

Using CB Insights' Mosaic scores, we identified the most promising startups in the voice AI development space.

Voice-AI-Mosaic-Change-July-25-884x1536-1

Not: Property & casualty insurtech

P&C insurtech funding cratered 89% from its Q2'21 peak to just $400M in Q2'25 — an 8-year low.

Property-and-casualty-insurtech-funding-falls-to-an-8-year-low-in-Q2-25-768x771

Just 5 startups captured over half the quarter's funding:

Ledgebrook, a professional liability MGA ($65M Series C)
Marshmallow, an auto insurer ($45M Series B)
Steadily, a landlord insurer ($30M Series C)
Orus, a small business insurance broker ($29M Series B)
Reserv, a third-party administrator ($25M Series B)

Yet, despite the broader funding decline, 3 of the top 5 P&C insurtech deals last quarter went to startups focused on small and midsize businesses (SMBs), signaling that targeted growth opportunities within this segment remain attractive to investors.

See which insurtech segments are still attracting capital in CB Insights' State of Insurtech Q2'25 report.

The +1

perfect-graph-thanks-team-v0-m96qpturqmhf1

Source: OpenAI

GPT-5 bombs. And we are to believe it's really good at math?

I love you.

Anand

@asanwal

Co-Founder & Exec Chair

P.S. Want to see how traditional banks are betting on blockchain? Check out our collaboration with Ripple and the UK Center for Blockchain Technologies.

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