Euclid Ventures

Euclid Ventures Research Investment Thesis Euclid Ventures is an inception-stage venture capital firm purpose-built for Vertical AI. Founded in 2022 by Omar El-Ayat and Nic Poulos, the firm is based in San Francisco and positions itself as the first early-stage fund dedicated exclusively to backing domain-expert founders building vertical AI and vertical software companies. Their core conviction is that Vertical AI will create hundreds of billions of enterprise value over the next decade, and that over 50% of B2B software exits are already vertical in nature — a trend AI is accelerating. Euclid invests pre-product, pre-traction, and even pre-team — partnering with founders from the earliest possible moment ("Day Zero"). They make selective, high-conviction bets in a concentrated portfolio, targeting category-winning companies rather than pursuing high-volume deal flow. The firm emphasizes a strong premium on founder-market fit, seeking founders with demonstrated, deep connectivity to their target vertical, whether through past vertical software startups or industry operating roles. Sector Focus Euclid's primary focus is Vertical AI and Vertical SaaS across multiple industries: Construction Technology (BuildVision, BuildingConnected, Machinery Partner) Real Estate / PropTech (HomeLight, Roofr) Insurance / Risk (Frontier Risk) Healthcare / Digital Health (Indie Health, Ambra911) Food & Consumer (Hungryroot) Education / Childcare (Brightwheel) Enterprise Applications across regulated industries They avoid horizontal AI platforms and general-purpose technology plays, focusing instead on purpose-built AI solutions for specific industry verticals. Their published research via "The Verticalist" newsletter covers topics like vertical AI business models, design partnerships, voice-first playbooks, AI agents in vertical contexts, and the economics of vertical software. Stage Focus Euclid operates at the earliest stages of company formation: Inception / Pre-Seed : Primary focus — investing within approximately 3 months of company founding Seed : Secondary focus — teams with early product and initial traction Selective follow-ons : Participate in later rounds for existing portfolio (e.g., Roofr Series B, Machinery Partner Series A) They describe themselves as investing "pre-product, pre-traction, pre-everything" and aim to be the first institutional investor in their portfolio companies. Check Size Typical initial investment: $500K - $2M Omar El-Ayat's sweet spot: ~$750K Nic Poulos's sweet spot: ~$900K Target ownership: ~10% equity on average Follow-on capacity for subsequent rounds Lead Tendency Euclid leads and co-leads inception-stage and pre-seed rounds. They emphasize independent conviction — they form their own view on founders, ideas, and markets before investing, rather than relying on social proof or co-investor signals. Recent Activity May 2025 : Invested in Indie Health (healthcare enterprise systems) January 2025 : Follow-on in Roofr Series B (roofing technology platform) December 2023 : Follow-on in Machinery Partner Series A ($8M round, led by Armory Square/Pritzker Group) August 2023 : Led $3.1M Seed in Frontier Risk (vertical risk and insurance platform) August 2021 : Led $5M Seed in Machinery Partner (construction equipment marketplace) The firm is actively deploying capital with approximately 15 total portfolio companies to date. Portfolio Highlights Euclid's portfolio spans vertical software and AI across multiple industries: Exits / Acquisitions: Postmates — food delivery platform, acquired by Uber BuildingConnected — pre-construction software, acquired by Autodesk VNDLY — workforce management, acquired by Workday (Nic Poulos investment) Unicorn: HomeLight — real estate technology platform Active Portfolio: Roofr — roofing technology and measurement platform BuildVision — procurement network for $600B commercial construction market Machinery Partner — construction equipment marketplace Frontier Risk — vertical risk and insurance platform Indie Health — healthcare enterprise AI Ambra911 — assistive AI for emergency services Brightwheel — childcare and preschool management software Hungryroot — personalized grocery and recipe platform Pre-Euclid Notable Investments (by partners): Electric, Transfix, Netomi (Nic Poulos at Bowery Capital/Fifth Wall) Tally (financial technology) Team Omar El-Ayat, General Partner & Co-Founder Omar has 10+ years of experience leading early-stage investments in vertical startups. Prior to founding Euclid, he was a Partner at Crosslink Capital (joined 2010). Notable investments include Postmates (acquired by Uber), BuildingConnected (acquired by Autodesk), Hungryroot, and HomeLight (unicorn). Based in San Francisco. Nic Poulos, General Partner & Co-Founder Nic has 10+ years of experience leading early-stage investments in vertical startups. Prior to Euclid, he was a GP at Fifth Wall and co-founded Bowery Capital in 2013. Notable investments include Electric, Transfix, Netomi, and VNDLY (acquired by Workday). Based in San Francisco. Contact: [email protected] Together they bring 15+ collective years investing in vertical markets. Decision Process Euclid operates as a two-GP partnership making high-conviction, concentrated bets. They dedicate the majority of their time to existing portfolio companies, engaging with founders weekly or more frequently. The firm selects only a small number of founders per year, reflecting their concentrated investment strategy. Geographic Focus Primarily United States and Canada. The firm is headquartered in San Francisco and invests across North America. Founder Preferences Euclid strongly prioritizes founder-market fit — they seek domain experts with deep industry connectivity and experience in their target vertical. They look for founders who understand the pain points of their industry firsthand, whether from operating companies, building prior vertical software products, or holding industry-specific roles. Technical capability combined with domain expertise is the ideal profile. Community & Network Euclid operates The Vertical Collective, an invitation-only leadership community of 200+ operators including startup CEOs and post-IPO founders from companies like Instacart, Procore, Samsara, nCino, Palantir, ServiceTitan, Toast, Clio, and HomeLight. The Collective provides introductions, deal flow, advisory opportunities, roundtables, and an annual summit. This network is a key value-add for portfolio companies. Publications & Thought Leadership The firm publishes "The Verticalist" newsletter on Substack with research-driven perspectives on Vertical AI, including annual "Vertical Report" market analyses, founder insights, and industry trend pieces. Notable publications include "The State of Vertical AI," "The 5 Business Models of Vertical Software," and "We Need to Talk About Agents."