Pryzm Raises $12M Led by Andreessen Horowitz to Transform Federal Procurement with AI

The company's AI procurement operating system bridges government and industry, accelerating how America builds and buys the technologies that power national security.

ARLINGTON, Va., Dec. 9, 2025 /PRNewswire/ -- Pryzm today announced a $12.2 million seed funding round led by Andreessen Horowitz's (a16z) American Dynamism fund, with participation from existing investors XYZ Venture Capital, Amplify.LA, and Forum Ventures. The raise advances Pryzm's mission to modernize how the federal government discovers, evaluates, and acquires emerging technology, while giving industry a clearer, faster path to identify opportunities, shape demand and compete on capability.

Built by alumni of Palantir and Lockheed Martin, Pryzm connects government and industry on a shared AI-powered platform that helps defense and civilian agencies move faster from concept to contract.

"The future of national defense depends on how fast we can get the right technology into the right hands," said Nick LaRovere, Co-Founder and CEO of Pryzm. "Procurement shouldn't be a barrier to innovation. 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."

Reclaiming America's Innovation Advantage

For decades, America's military has served as a bastion of innovation, fueling the development of technologies that defend our freedoms and transform industry. From the internet to GPS, duct tape to compilers, breakthroughs born of the national security ecosystem have reshaped the world.

But in recent years, the burden of bureaucracy has throttled that innovation engine. Paperwork, opacity and countless information silos have made it harder for government teams to fund and field advanced technologies, and for industry to navigate the process. The result is a widening gap between what's technologically possible and what the government can actually deploy.

That dynamic is beginning to shift. In a November 7, 2025, address titled "The Arsenal of Freedom," Secretary of War Hegseth announced sweeping reforms to the Pentagon's acquisition processes:

"We will foster competition, embrace modularity, and pursue multi-source procurements at every opportunity, moving fast to contract, test, scale, and deploy when a solution is clear."

The key word here is fast. It's time to move effectively, with speed.

Pryzm has been building ahead of this moment, supporting major federal programs and innovators like Forterra, Vannevar Labs, HII and the Defense Innovation Unit (DIU). As the government embarks on this new mandate, Pryzm's platform provides the digital infrastructure needed to operationalize it, enabling a faster, more open, and more competitive acquisition system that closes the delta between innovation and deployment.

"Pryzm is building the connective tissue between America's innovation base and its mission buyers," said David Ulevitch, General Partner, Andreessen Horowitz. "We believe their platform will redefine how the government collaborates with private industry to strengthen our technological edge."

Powering a Smarter Defense Ecosystem

But translating these reforms into real-world outcomes requires more than policy; it requires systems, data, and tooling capable of executing acquisition at the speed modern defense demands. That's where Pryzm comes in.

Every year, the U.S. government spends over $900 billion on defense and national security, but much of that process still runs on outdated tools and fragmented systems. Pryzm bridges this gap by giving federal acquisition teams and private-sector innovators a unified, AI-driven view of market intelligence, budgets, and program activity.

"Pryzm isn't just speeding up procurement. They're becoming the operating system the entire defense ecosystem runs on. You can feel that shift happening across startups, primes, and government teams," said Ross Fubini, Founder & Managing Partner, XYZ. "It's rare to see a company define a category this quickly in a space as complex as federal acquisition."

For industry, Pryzm delivers real-time insights that help companies identify opportunities, align with funding priorities, and engage the right stakeholders, empowering startups, primes, and dual-use companies to navigate federal capture with confidence.

For government users, Pryzm creates a digital thread of every defense dollar, streamlining decision-making and accelerating acquisition timelines, so teams can source and procure emerging technologies faster. The result is that the highest-capability companies can compete and win, while agencies deliver mission-critical technologies where they're needed most.

A Year of Rapid Growth

Pryzm's differentiated approach is paying dividends and setting the stage for an ambitious 2026 and beyond. Over the past year, the company has:

• Developed a first-of-its-kind AI platform, fusing public data and each users' internal data into a comprehensive, targeted digital thread.
• Achieved both IL5 and FedRAMP High authorizations, allowing users to securely connect sensitive mission and procurement data across Pryzm, making true end-to-end procurement automation possible.
• Selected by the DIU for its Enterprise Workflow and Reporting Platform (eWARP) effort, powering AI-driven program, budget, and contract management.
• Supported leading government contractors in their capture efforts, including Forterra, HII, Vannevar Labs, and REGENT Craft.
• Opened a new office in Arlington, VA and expanded its Boston, MA headquarters.

Fueling the Next Phase

With this new funding, Pryzm is well-positioned to scale its impact across both government and industry. The company plans to expand its customer base, deepen deployments with existing partners, and continue to enhance its AI platform with next-generation capabilities. It will also grow its federal compliance posture with new certifications and authorizations, and increase its engineering and go-to-market teams across Washington, D.C., Boston, and New York.

By bridging the gap between cutting-edge innovation and real-world deployment, Pryzm is turning a long-stalled vision of faster, more open, and more competitive federal procurement into a reality. This work ensures America continues to lead, protect, and inspire on the global stage.

About Pryzm

Pryzm is the AI operating system for federal capture and acquisition. Built by alumni of Palantir and Lockheed Martin and designed for both commercial and federal users, Pryzm is trusted across the national security ecosystem to unify market intelligence, relationship insights, and real-time program awareness into a single, actionable view. The company is committed to ensuring the United States and its allies can rapidly field technology to the missions that matter most. Headquartered in Boston, Mass., with offices in Arlington, Va. Learn more at www.pryzm.io.

SOURCE Pryzm Dynamics Inc.