Boston-based startup Pryzm has raised $12.2 million in seed funding to build what it describes as an AI operating system for federal capture and acquisition.
The funding round was led by Andreessen Horowitz’s American Dynamism fund, with participation from XYZ Venture Capital, Amplify.LA, and Forum Ventures, Pryzm announced on LinkedIn on Thursday.
Pryzm is designed to give startups, small businesses, prime contractors, and dual-use companies real-time intelligence on federal opportunities, funding priorities, and key stakeholders. The goal is to help companies compete on technical capability rather than institutional knowledge of federal procurement, a barrier that has historically favored large incumbents.
“Our mission is simple: help the federal government discover, evaluate, and acquire emerging technology faster. And empower industry to capture more revenue by competing on true capability. Built by alumni of Palantir and Lockheed Martin, Pryzm is the AI operating system for federal procurement, connecting government and industry on a shared platform that turns months of work into minutes. We’ve built an AI system with IL5 and FedRAMP High authorization, seamlessly connecting federal data intelligence and CRM to power your sensitive capture and acquisition workflows. With this funding, we’re scaling across defense and civilian agencies, hiring the best of the best, deepening partnerships, and accelerating a faster, more competitive acquisition system for the U.S.” said the company on LinkedIn
The fresh capital will be used to expand Pryzm’s customer base, deepen deployments with existing partners, and add new capabilities to the platform. The company also plans to scale hiring and broaden its reach across both defense and civilian agencies.
Ross Fubini, managing partner at XYZ Venture Capital, wrote on LinkedIn: “Excited to see more capital coming to scale Pryzm which helps the best companies sell to government buyers. We’ve seen from decades of work with Palantir Technologies Anduril Industries Forterra TurbineOne Cape Nominal and so many others – go to market is the hardest part of building companies that serve the government. The buyers want the best solutions, but it’s a rare skill for how to find those buyers, prove value, and get contracts to done,”
Speaking of the Pryzm team, Fubini added, “Nick LaRovere and team have been relentless in building procurement /capture success for the modern companies focused on the public sector. Your federal sales teams should be trialing now and seeing how to move faster.”
Pryzm operates from Boston and maintains an office in Arlington, Virginia, placing it close to key federal agencies, defense contractors, and procurement decision-makers. As competition intensifies to bring emerging technology into government, Pryzm is betting that AI-driven capture and acquisition tools can level the playing field for smaller players seeking a foothold in the federal market.
Pryzm was founded in 2022 by a team of tech and defense industry veterans, including Nick LaRovere (former software engineer at Palantir), Matt Hawkins (former program manager at Lockheed Martin), and David Istrati, with Justin Deckert joining early as a co‑founder. The idea for the company grew out of conversations between LaRovere and Hawkins about the complexities facing technology firms trying to work with the federal government, and early development began during a ski trip in 2022. Pryzm’s leadership blends backgrounds from Palantir, Lockheed Martin, and academic research, and the company initially raised a pre‑seed round in 2024.
LaRovere’s background reflects a broader trend of engineers and operators leaving major defense and government technology firms to build software focused on modernizing public sector procurement. While federal agencies increasingly seek cutting-edge solutions from startups and small vendors, many of those companies struggle to identify the right buyers, prove value, and translate pilot programs into long-term contracts.
That gap in go-to-market execution is where Pryzm aims to position itself. The platform delivers real-time insights intended to help companies identify relevant programs, align offerings with agency funding priorities, and engage decision-makers earlier in the acquisition cycle.
