The two-plus-year-old startup has secured timely funding for its innovative approach of using SEO agents that dramatically improve the execution of client strategies.
For years, the playbook for Search Engine Optimization (SEO) has been the same: hire an agency, wait weeks for a keyword report, and spend months slowly rolling out content.
But as Google and Bing lean deeper into generative AI, the old manual methods are becoming obsolete.
Enter daydream, a San Francisco-based “AI-native agency” that just secured a $15 million Series A funding round to fundamentally change how brands win in organic search.
Beyond Tools: The Rise of the AI-Native Agency
The funding was led by WndrCo, founded in 2016 by Sujay Jaswa and Jeffrey Katzenberg, with participation from First Round Capital and Basis Set Ventures. This brings daydream’s total capital to $21 million. The goal? To build what they call the “world’s best AI-native agency.”
While traditional software tools tell you how you’re performing, daydream is designed to actually do the work. By combining “SEO agents” (AI specialized in search tasks) with high-level human growth leads, the company claims it can execute strategy at a velocity that traditional agencies—and even in-house teams—simply can’t match.
“Most companies are still optimizing for a version of search that no longer exists,” says Shravan Rajinikanth, CTO and Co-Founder of daydream.
What is an “AI-Native Agency”?
The concept of the AI-native agency is one of the hottest trends in Silicon Valley right now. In fact, Y Combinator recently ranked this category #3 on its “Request for Startups” list for 2026.
Unlike a software-as-a-service (SaaS) platform that requires a human to operate it, an AI-native agency uses autonomous agents to handle the “grunt work” of SEO: keyword research, technical audits, and content scaling. While human experts focus on high-level strategy and quality control.
The “Unfair Advantage” in the Age of AI Search
The SEO landscape is currently in upheaval. With the rise of AI-generated answers in search results, brands are no longer just competing for blue links. They are competing for visibility within AI models themselves.
“The teams that figure out organic search in the age of AI will have an unfair advantage,” says ChenLi Wang, General Partner at WndrCo.
Daydream’s approach focuses on seven levers of organic growth. It ranges from traditional keyword strategy to modern “AI visibility.” By automating the execution, daydream aims to help high-growth companies pivot their search strategy in real-time as search engine algorithms evolve.
Why This Matters for the Future of Work
Daydream’s $15M bet is a signal that the future of professional services isn’t just about “using AI”. It’s about AI being the service.
For businesses, this could mean the end of the “slow-moving agency” era. It means the beginning of a period where marketing execution happens at the speed of software.
As CEO Thenuka Karunaratne puts it, the company is focused on “enabling maximum velocity in one of the most complex marketing channels to master.”
In a world where search engines change by the week, “velocity” may be the defining competitive advantage.
