Pryzm raises $12.2M in seed funding to accelerate procurement for defense tech innovators

A procurement startup called Pryzm Dynamics Inc. has raised $12.2 million in a seed funding round led by high-profile investor Andreessen Horowitz’s American Dynamism fund to try to accelerate innovation in the U.S. defense sector.

The round, which includes participation from existing investors XYZ, Amplify.LA and Forum Ventures, will help the startup scale up its impact across both the government and private industry sectors, it said.

Pryzm’s mission is to modernize how the U.S. government and its contractors discover, evaluate and acquire emerging technology, using artificial intelligence to accelerate how they identify opportunities and shape demand. Founded by veterans from Palantir Technologies Inc. and Lockheed Martin Corp., the startup has built an AI-enabled software platform for government contracting that combines deep, data-based insights with customer relationship management capabilities and more, all in one product.

Pryzm explains that America’s military has a well-deserved reputation for innovation, fueling the development of numerous transformative technologies and products, including the Internet, the Global Positioning System, microwave ovens, sanitary towels and even duct tape. However, increased bureaucracy has slowly but surely throttled the military’s pace of innovation, and these days it’s bogged down by endless paperwork and information silos that make it almost impossible for government teams to maintain the pace of yesteryear. Pryzm said this means there’s a growing gap between what technologies are theoretically possible, and what can actually be deployed.

This is the challenge that Pryzm is trying to solve – increasing the pace of innovation in the U.S. defense sector. It’s doing so with an AI-enabled procurement and acquisition platform that provides teams with a unified view of market intelligence, program activity and budgets.

For the industrial sector, Pryzm’s platform offers real-time insights such as U.S. government budget intelligence to assist companies in identifying opportunities and engaging with the right stakeholders, so they can better cater to the federal market. Meanwhile, government users can create a “digital thread” of every dollar they spend and streamline decision-making and acquisition processes, enabling products and services to be sourced and procured much faster.

Pryzm co-founder and Chief Executive Nick LaRovere said it’s vital for the defense industry to be able to get the right technology in the right hands as quickly as possible to speed up innovation. “Procurement shouldn’t be a barrier to innovation,” he said. “It should be the spark that drives it. With this round led by a16z, we’re accelerating a new era of speed, adaptability and technological advantage for national security.”

The startup has already enjoyed a lot of success, with its platform supporting key federal development programs such as the U.S. Defense Innovation Unit and government contracts such as Vannevar Labs and Forterra Inc. Crucially, it has also achieved IL5 and FedRAMP High authorizations, which certifies its ability to securely connect with sensitive mission and procurement data.

Moving forward, Pryzm wants to expand its customer base and extend its deployments with existing customers while improving the AI capabilities of its platform. It’s also planning to apply for new federal certifications and authorizations so its platform is eligible to be used by more government agencies.

Andreessen Horowitz General Partner David Ulevitch said Pryzm will become the connective tissue between America’s innovation base and its mission buyers. “We believe its platform will redefine how the government collaborates with private industry and strengthen our technological edge,” he said.

Images: Pryzm