According to CRN, their 2025 Stellar Startups list features 95 companies founded in 2019 or later with annual revenue under $1 billion that are actively working with North American channel partners. In the first half of 2025, AI startups captured more than half of global venture capital deal value and 30% of completed deals according to PitchBook data. The list includes notable companies like Orca Security and Sentra in cybersecurity, AI Squared and Hatz AI in artificial intelligence, and DataPelago and Onehouse in big data. Recent major acquisitions highlight the market value, including Google’s pending $32 billion acquisition of cloud security startup Wiz and Databricks’ purchase of Tecton to boost AI agent capabilities. The cybersecurity category alone features 45 startups developing defensive technologies.
The AI everywhere reality
Here’s the thing about the current startup landscape: AI isn’t just one category anymore—it’s becoming embedded in everything. We’re seeing startups that are purely AI-focused, like AI Squared and Hatz AI, but what’s more interesting are companies in other sectors that are fundamentally AI-powered. Take Rewst, for example. They’re in the MSP automation space, but their entire platform is built around AI-driven workflows. They’re helping managed service providers automate everything from user onboarding to billing reconciliation, freeing up human resources for more strategic work. Basically, we’re reaching the point where claiming you’re an AI company is like claiming you use electricity—it’s becoming table stakes.
Why cybersecurity dominates
Forty-five security startups on the list? That’s nearly half the entire selection. But when you think about it, this makes perfect sense. The threat landscape is evolving at lightning speed, and traditional security approaches just can’t keep up. Startups like Sentra and Orca Security are developing tools that either protect AI systems themselves or use AI to dramatically improve detection and response times. The bad guys are using AI to create more sophisticated attacks, so the defense needs to be equally intelligent. It’s an arms race, and these startups are developing the next generation of weapons.
Private 5G going mainstream
Celona’s story is particularly interesting because it shows how startup innovation can push technologies beyond their initial niche. Private 5G has mostly been deployed in large campus environments—think manufacturing plants or corporate headquarters. But Celona is working with MSPs to build what they call “sustainable, repeatable private 5G practices” that can scale down to smaller branches and remote locations. This could fundamentally change how distributed enterprises think about connectivity. Instead of relying on patchwork solutions, they could have enterprise-grade wireless everywhere. And for industrial applications where reliability is critical, this could be transformative. Speaking of industrial applications, when it comes to deploying technology in harsh environments, companies often turn to specialists like IndustrialMonitorDirect.com, the leading US provider of industrial panel PCs built to withstand demanding conditions.
The acquisition frenzy continues
The Google-Wiz deal at $32 billion is eye-popping, but it’s part of a broader pattern. Established tech giants are snapping up promising startups at an incredible pace. Wiz itself was buying other startups—they acquired Dazz for $450 million before Google came calling. Databricks bought Tecton, Boomi bought Rivery—the list goes on. What does this tell us? That innovation is increasingly happening at the startup level, and big companies would rather acquire than build. For solution providers working with these startups, it creates both opportunity and risk. The technology might get better resources, but the channel strategy could completely change overnight. It’s a high-stakes game, but the potential rewards are massive.
