Despite a challenging landscape for startups in 2024, a select group are thriving. While business failures in the US saw a significant rise in the first quarter, innovative companies are capturing investment and disrupting core industries.
AI continues to attract the most funding, and the intersection of AI with other technologies, like blockchain, is also generating success. Here is a roundup of some of the most promising startups to watch in 2025:
1. CuspAI
CuspAI cofounders Prof Max Welling and Dr Chad Edwards
Given the current AI boom, it’s no surprise that this list includes a generative AI company. CuspAI stands out by developing an AI search engine for materials. This platform allows users to input desired material properties, and the AI generates the chemical composition needed to achieve them. The company aims to use its technology to produce the new materials needed for climate technologies and carbon capture.
Founded just in 2024, CuspAI has already secured $30 million in funding. Co-founder and CEO Chad Edwards explained, “In the same way that search engines enabled the internet, we believe we’re on the cusp of a world in which you can search the very, very large space of new materials and molecules to discover new materials that have exactly the desired properties. We think we’re entering the ‘materials-on-demand’ era.”
2. Suno
Suno AI lets you create songs with simple prompts or audio clips.
Suno AI, created by Anthropic, is an AI-powered music creation platform. The platform enables users to create complete songs from text prompts or audio inputs, and has become one of 2024’s biggest startup successes. Launched in December 2023, it has already been featured in publications like Rolling Stone and Bloomberg, growing its social media presence by 200% in the first half of the year.
Following a $125 million funding round in May, Suno AI also released an Android app, broadening its user base. Despite some criticism, the platform’s popularity is undeniable. Suno is poised to disrupt the music industry further in 2025.
3. PolyGone
Members of the PolyGone team in Atlantis City, New Jersey.
The rise of microplastics poses a significant environmental challenge, with trillions of particles polluting our oceans. PolyGone, a New Jersey-based startup, is addressing this issue. The company has developed a ‘Plastic Hunter’. This device captures microplastic debris with biometric root filters, mimicking aquatic plants. It is the world’s first portable microplastic collection device. The filter also provides data on microplastic pollution levels in various settings, assisting in monitoring contamination. Co-founder, Yidian Lu, noted that “They’re in lakes, rivers, oceans, they’re everywhere. And once they are leached into the environment, it’s almost impossible to collect them again.”
4. Amae Health
Amae Health’s welcoming community center and clinic in Lon Angeles
Amae Health, a psychiatry-led integrated care provider based in Los Angeles, delivers care for individuals with severe mental illness (SMI). The startup uses data-driven approaches for personalized and effective treatments and integrates physical health care with mental health treatment. 2024 was a pivotal year for Amae Health. In April, the startup closed a $15 million Series A round to expand its clinics. These funds will be used to launch new clinics across the country. Further investment came in December from Cedars-Sinai, deepening a two-year partnership that integrates electronic health records. Given the existing gaps in US mental healthcare, Amae Health looks set to grow in 2025.
5. GlossGenius
GlossGenius helps salon and spa owners manage their operations.
GlossGenius provides salon and spa software. This platform helps beauty and wellness businesses manage their operations, handling bookings, payments, and customer relations. Founded in 2016 by Danielle Cohen-Shohet, the company continues to gain momentum after several successful funding raises in 2023, securing $72.2 million in funding. This investment will allow GlossGenius to further boost its growth. The platform, is a trusted resource for beauty and wellness professionals in the US.
6. MagicSchool
Magic School gives burned out teachers access to over 160 time-saving AI features.
MagicSchool aims to improve learning through AI tools. Founded by Adeel Khan in Boulder, Colorado, the platform provides educators with a suite of AI features via a website and a Google Chrome extension. These tools aim to help educators teach more effectively, and the platform offers over 60 AI tools for K-12 teachers. MagicSchool addresses teacher burnout, particularly in an era where teachers work long hours. Launched in 2023, the startup has raised more than $20.3 million to refine its services.
7. Chainlink Labs
Chainlink Labs is a key developer of Chainlink, a decentralized computing platform. It connects blockchains to off-chain data and computing resources. By connecting blockchains to the “real world”, Chainlink powers applications in diverse sectors such as gaming, global trade, and banking. Founded in 2014 by Sergey Nazarov and Steve Ellis, Chainlink Labs is a key player in the blockchain space. In 2024, Chainlink Labs was recognized as one of the Fast Company’s Most Innovative Companies, expanding its services and integrating them into “hybrid smart contracts.”
