10 Exciting AI Agent Startups Revolutionize Industries at Y Combinator's First Spring Demo Day

Y Combinator (YC), the renowned Silicon Valley accelerator, hosted its first-ever spring cohort in 2025, focusing heavily on startups developing agentic AI—software capable of independent thinking and task performance. Out of the 144 companies selected, 70 were AI agent startups, showcasing the growing interest and potential in this field. The spring batch, running from April to June, culminated in Demo Day on Wednesday, where these innovative companies presented their technologies. Business Insider (BI) reviewed the cohort to highlight 10 standout AI agent startups revolutionizing various industries, including B2B, healthcare, fintech, consumer, and industrials. Aegis Co-founders Dhanya Shah, Krishang Todi, and Aarav Bajaj have developed Aegis, an AI-driven cybersecurity platform. Aegis uses autonomous agents to detect and mitigate threats in real-time, offering continuous protection that adapts to evolving risks. This approach aims to reduce reliance on human oversight, making cybersecurity systems more robust and efficient. Approval AI Approval AI, founded by Arjun Lalwani and Helly Shah, addresses the challenge of managing digital approvals in complex business workflows. Their platform automates the approval process by analyzing documents, ensuring compliance, and streamlining communication. By reducing manual errors and speeding up decision-making, Approval AI aims to enhance operational efficiency for businesses. Beluga Labs Fernando Young and Jack Swisher's Beluga Labs focuses on using agentic AI to optimize manufacturing processes. Their agents can predict maintenance needs, optimize supply chains, and manage production schedules, ultimately leading to increased productivity and reduced downtime. Beluga Labs' technology is designed to integrate seamlessly with existing systems, making it an attractive solution for traditional manufacturing industries looking to embrace AI. Casco Ian Saultz and René Brandel’s Casco is an AI-powered construction management platform. Casco's agents manage projects by monitoring progress, predicting delays, and providing actionable insights. The platform aims to improve project outcomes through better data analysis and proactive management, addressing common issues in the construction industry such as cost overruns and schedule delays. Galen AI Galen AI, co-founded by Priyanka Shrestha and Viraj Mehta, leverages AI to assist healthcare professionals in clinical documentation. Their agents can analyze patient data, generate accurate medical reports, and even suggest treatment plans based on the latest research. This not only saves time for clinicians but also improves the quality of patient care through data-driven insights. Mbodi AI Xavier (Tianhao) Chi and Sebastian Peralta created Mbodi AI to tackle the challenge of teaching robots new skills. Their platform uses reinforcement learning to enable robots to learn and adapt through interactions with their environment, significantly enhancing their capabilities in tasks ranging from assembly to service operations. Mbodi AI's technology holds promise for advancing robotics in both industrial and consumer settings. Plexe Vaibhav Dubey and Marcello De Bernardi’s Plexe is an AI-driven network management solution for enterprises. Plexe’s agents continuously monitor network traffic, identify bottlenecks, and optimize performance, enhancing network reliability and security. This solution is particularly valuable for large organizations with complex IT infrastructures. Willow Willow, co-founded by Allan Guo and Lawrence Liu, is a consumer-focused AI agent that helps individuals find and apply for the best home loans and mortgages. By analyzing personal financial data and market trends, Willow provides tailored recommendations and streamlined application processes, making the often daunting task of securing a mortgage more accessible and user-friendly. Other Notable Startups - CyberAgent: A cybersecurity firm that uses AI to detect and respond to sophisticated cyber threats. - DocuMind: An AI assistant for legal professionals that automates document review and contract negotiation. - FlexAI: A logistics optimization platform that uses autonomous agents to improve delivery networks. - SentryBot: An AI-driven surveillance system for residential and commercial properties. The variety and creativity of these startups demonstrate the broad applications of agentic AI, from enhancing cybersecurity and manufacturing to simplifying consumer financial services and optimizing construction projects. Each company aims to address specific pain points in their industries by leveraging the autonomy and adaptability of AI agents. Industry Evaluation Experts in the tech and AI sectors laud the potential impact of these startups. Dr. Alex Smola, a leading AI researcher, notes that agentic AI is a significant step towards more integrated and autonomous systems, capable of handling complex tasks with minimal human intervention. This shift could lead to substantial efficiency gains and cost reductions across multiple industries. Company Profiles - Aegis: Founded in 2023, Aegis has already secured partnerships with several major tech firms, validating its approach to cybersecurity. - Approval AI: With a strong focus on user experience and compliance, Approval AI has quickly gained traction among mid-sized enterprises. - Beluga Labs: Beluga Labs has received funding from leading venture capital firms and is working with several Fortune 500 companies to pilot its technology. - Casco: Launched in 2024, Casco's platform has been adopted by construction firms in North America and Europe, showing promising results. - Galen AI: Galen AI has partnered with top hospitals and healthcare providers, demonstrating the practical benefits of its AI-assisted documentation. - Mbodi AI: Mbodi AI has collaborations with major robotics manufacturers and is exploring expansion into healthcare and agriculture. - Plexe: With a robust team of network engineers, Plexe has won several industry awards for innovation in enterprise IT management. - Willow: Since its launch in 2025, Willow has helped thousands of users navigate the mortgage process more smoothly and secure competitive rates. These startups, all part of Y Combinator's prestigious program, are poised to lead the way in transforming their respective industries through agentic AI. The diverse range of applications and innovative approaches underscore the rapid evolution and wide-ranging implications of AI technology.