Trace raises $3M to solve the AI agent adoption problem in enterprise | TechCrunch

TechCrunch

by Russell Brandom

February 26, 2026

AI-Generated Deep Dive Summary

Trace, a London-based startup, has secured $3 million in seed funding led by Y Combinator and other notable investors to address the slow adoption of AI agents in enterprises. The company specializes in workflow orchestration, focusing on providing context for AI tools like OpenAI and Anthropic to function effectively within complex corporate environments. Trace's approach involves creating a knowledge graph from existing systems such as email, Slack, and Airtable. This allows users to assign high-level tasks, which Trace then breaks down into workflows, delegating some tasks to AI agents and others to human workers. When AI is involved, Trace delivers specific prompts tailored to the task, streamlining the integration process. While competition exists with Anthropic's plug-ins and platforms like Atlassian introducing their own AI agents, Trace differentiates itself through its knowledge-graph approach. This method enables context engineering, a shift from traditional prompt engineering, positioning Trace as a foundational infrastructure for future AI-driven enterprises. The significance of Trace's solution lies in bridging the gap between AI potential and enterprise needs. By automating the onboarding process and providing necessary context, Trace aims to unlock scalable AI adoption, making it a pivotal player in the evolving landscape of agentic AI within businesses.

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Originally published on TechCrunch on 2/26/2026