The Rise of Agentic AI and Its Implications for Venture Capital
By Imran Aftab
As investment in technology accelerates, venture capitalists are increasingly focusing on autonomous systems powered by agentic AI. In the first six weeks of 2025 alone, European venture capital firms funneled an impressive $548 million into startups specializing in AI agents, indicating a significant shift in funding priorities.
Advancements in Agentic AI
Although variations of agentic AI have been around for several years, recent breakthroughs in natural language processing have opened new possibilities. We are moving beyond basic generative AI tools towards sophisticated agents capable of perceiving, strategizing, and acting independently. These AI systems can interact with existing software tools, collaborate with other agents, and improve their performance through learning.
Investment Focus: Implementation and Risk Management
It’s important to note that investors are not solely interested in innovative ideas. They seek founders who excel in implementation and risk management, thereby ensuring a clear path to return on investment (ROI). The emphasis is on quantifiable benefits that AI agents bring to business processes:
- Enhancements in productivity leading to revenue growth.
- Improved customer relationships driving loyalty, with measurable impacts on the bottom line.
Understanding these metrics is crucial for startups to secure funding.
The Importance of Data Integrity
Investors are essentially betting on the integrity of the data behind these algorithms. Major technology firms, including Google and Microsoft, have invested in frameworks to develop agentic capabilities. Yet, many companies still encounter issues like data silos, biased datasets, and inaccurate inputs, undermining their AI initiatives.
A robust data foundation is vital for successful outcomes in AI applications. Poor data management can severely limit effectiveness and financial returns, prompting venture capitalists to withdraw their support. It is essential to demonstrate that your data is verified and governed effectively to enhance trust in your AI capabilities.
The Role of Human Oversight
Human involvement remains critical in shaping effective AI frameworks. There is no scenario in which humans can be entirely removed from the decision-making process. Organizations that derive maximum value from agentic AI often integrate these solutions into their business processes while ensuring human validation of AI decision-making.
According to a McKinsey survey released in March 2025, businesses are intensifying efforts to manage risks associated with AI, such as inaccuracies and cybersecurity threats. To stand out and attract funding, organizations should:
- Integrate domain experts into AI initiatives.
- Educate staff on security best practices.
Moreover, creating a seamless relationship between human insights and AI capabilities is essential for addressing challenges when they arise. The strategic decision-making by humans plays a key role in mitigating AI risks. A BCG AI Radar survey indicates that leading organizations adopt the “10-20-70” principle—spending 70% of their time on people, processes, and cultural transformation, thereby decreasing investment risk.
Mature Human-AI Collaboration: The Key to Attracting Investment
As organizations introduce AI agents, the human factor remains indispensable for ensuring accountability and security. While agentic AI may perform autonomously in various processes, it is imperative that senior leadership maintains oversight to ensure alignment with broader strategic objectives.
Ultimately, the capability for mature human-AI collaboration serves as a pivotal factor in the investment appeal of a startup.
Imran Aftab is the co-founder and CEO of 10Pearls, a global technology partner specializing in AI solutions. Under his leadership, 10Pearls has expanded to over 1,300 employees across four continents, focusing on helping businesses innovate and scale through digital transformation and AI technology.