Kite's $18M Series A: Pioneering the Agentic Web Infrastructure

The agentic web is no longer a speculative concept—it is an emerging economic layer where autonomous AI agents transact, collaborate, and innovate without human intervention. At the forefront of this transformation is Kite, a startup that has raised $18 million in Series A funding to build the foundational infrastructure for this new digital economy. With PayPal Ventures and General Catalyst leading the round, Kite’s total funding now stands at $33 million, signaling institutional confidence in its vision to become the “AWS of the agentic internet” [1].

The Agentic Economy: A $200 Billion Opportunity

The market for agentic AI is expanding at an unprecedented pace. According to a report by Precedence Research, the global AI agents market is projected to grow from $5.29 billion in 2023 to $216.8 billion by 2035, with a compound annual growth rate (CAGR) of 40.15% [2]. By 2030, the market could reach $46.58 billion, expanding at a CAGR of 43.8% [3]. These figures underscore a seismic shift in how enterprises and consumers interact with AI, driven by demand for productivity automation, virtual assistants, and machine-to-machine workflows.

Kite’s infrastructure is uniquely positioned to capitalize on this growth. Its Kite Agent Identity Resolution (Kite AIR) platform introduces two critical components: Agent Passport, which provides cryptographic identities with operational guardrails, and Agent App Store, where agents can discover and pay for services using stablecoins like USDC [1]. This infrastructure enables microtransactions with near-zero fees and millisecond-level settlement, addressing the high-volume, low-margin nature of agentic commerce.

Strategic Partnerships and Institutional Backing

Kite’s partnerships with Shopify and PayPal are pivotal to its market positioning. By integrating with Shopify, Kite allows merchants to be discoverable by AI shopping agents, creating a new revenue stream through machine-driven demand [1]. PayPal’s involvement—both as an investor and a collaborator—adds credibility, as the fintech giant brings regulatory expertise and a global payment network. As stated by a Cointelegraph report, PayPal Ventures’ $18 million investment reflects its belief in Kite’s ability to navigate compliance challenges while scaling [4].

Moreover, Kite’s collaboration with Avalanche, a high-throughput blockchain platform, further strengthens its scalability. The partnership aims to launch an AI-focused Layer 1 blockchain on Avalanche, optimized for high-speed data processing and interoperability [5]. This aligns with broader industry trends: venture capital investment in agentic AI startups has already exceeded $9.7 billion since 2023, and over 60% of new enterprise AI deployments now include agentic capabilities [6].

Competitive Advantages in a Fragmented Market

While Kite faces competition from other agentic infrastructure providers, its focus on identity, trust, and institutional adoption sets it apart. Unlike platforms that prioritize raw computational power, Kite addresses governance challenges through programmable guardrails in Agent Passport, ensuring agents operate within defined parameters. This is critical for enterprise adoption, where compliance and transparency are non-negotiable.

The company’s modular design and open standards also position it to adapt to evolving use cases. For instance, its Agent App Store supports APIs and commerce tools, enabling agents to access a growing ecosystem of services. As the stablecoin market expands—projected to reach $1.2 trillion by 2028 [7]—Kite’s stablecoin-based payment layer becomes increasingly valuable for cross-border and decentralized transactions.

Investment Thesis: Building the Base Layer for the Agentic Web

Kite’s Series A funding comes at a pivotal moment. With a $18 million injection, the company is accelerating the development of its infrastructure to support a decentralized, machine-driven economy. Its strategic partnerships, institutional backing, and technological innovations—particularly in identity resolution and stablecoin payments—position it as a key enabler of the agentic web.

For investors, the opportunity lies in Kite’s potential to become the default infrastructure layer for autonomous agents, much like AWS for cloud computing. As the agentic economy matures, Kite’s focus on trust, interoperability, and scalability could translate into a dominant market position. With the AI agents market expected to surpass $200 billion by 2035, the stakes for early infrastructure providers are enormous.

Source:
[1] Kite Raises $18M in Series A Funding To Enforce Trust in the Agentic Web [https://newsroom.paypal-corp.com/2025-09-02-Kite-Raises-18M-in-Series-A-Funding-To-Enforce-Trust-in-the-Agentic-Web]
[2] AI Agents Market Size to Hit USD 236.03 Billion by 2034 [https://www.precedenceresearch.com/ai-agents-market]
[3] AI Agent Trends and Predictions for 2025 [https://inoxoft.com/blog/ai-agent-trends-and-future-predictions/]
[4] PayPal Ventures backs Kite AI with $18M to power AI agents [https://cointelegraph.com/news/paypal-ventures-backs-kite-ai-with-18m-to-power-ai-agents]
[5] Kite AI to Launch the First Avalanche L1 Artificial Intelligence Platform [https://www.avax.network/about/blog/kite-ai-to-launch-the-first-avalanche-l1-artificial-intelligence-platform]
[6] Top 100 Agentic AI Facts & Statistics [2025] [https://digitaldefynd.com/IQ/agentic-ai-statistics/]
[7] Kite: Pioneering the Infrastructure for the Agentic Economy [https://www.ainvest.com/news/kite-pioneering-infrastructure-agentic-economy-2509/]