Pryzm Raises $12M for Federal Procurement OS

In December 2025, the government technology startup Pryzm raised $12.2 million in a Seed funding round. The investment was led by Andreessen Horowitz (a16z) through its “American Dynamism” fund, with participation from XYZ Venture Capital, Amplify.LA, and Forum Ventures.

The company is led by CEO Nick LaRovere and a founding team of alumni from Palantir and Lockheed Martin. Pryzm is building an AI-powered “Operating System” to modernize the antiquated federal procurement process.

For decades, government contracting (GovCon) has relied on fragmented data silos and manual relationship mapping, making it difficult for agencies to find innovative tech and for companies to win contracts. Pryzm addresses this by unifying budget data, organizational hierarchies, and decision-maker networks into a single “Command Center.” Its AI agents analyze billions of dollars in funding movements to help contractors identify opportunities earlier and help government buyers discover emerging capabilities faster.

The new capital will be used to scale its engineering team in Boston and Arlington, and to deepen its deployment across defense and civilian agencies following its recent FedRAMP High authorization.

Market Signal

• The “American Dynamism” Thesis: a16z’s leadership in this round reinforces their massive bet on “National Interest” tech. Pryzm sits at the infrastructure layer of this thesis—it’s not building the weapons (like Anduril), but building the software rails that allow the government to buy those weapons efficiently.
• The FedRAMP Moat: Achieving FedRAMP High authorization at the Seed stage is virtually unheard of. This creates a massive defensive moat, as it allows Pryzm to handle sensitive CUI (Controlled Unclassified Information) that competitors’ lighter-weight tools cannot touch, effectively locking out non-compliant AI wrappers.
• Palantir DNA: The founders’ background at Palantir suggests a product philosophy centered on “Data Integration” rather than just “Chat.” They are solving the hard problem of cleaning and linking messy government data (budget lines + personnel + requirements) to create a source of truth for the industrial base.

Key Details

• Company: Pryzm
• Funding: $12.2M Seed
• Headquarters: Arlington, VA / Boston, MA
• Lead Investor: a16z (American Dynamism)
• Founders: Nick LaRovere (CEO), David Istrati, Justin Deckert
• Use Case: AI operating system for federal procurement and capture management