The success of companies like Palantir and Anduril has not only inspired a new wave of aspiring tech startups seeking to carve out a space alongside major defense primes like Boeing and Lockheed, but it has also given rise to a new ecosystem of startups uniquely positioned to support other defense tech companies.
One standout startup in this space is Pryzm, founded in 2022 with a focus on optimizing data related to government contracting, assisting companies in securing more contracts, and providing essential tools for the contracting process. Today, the company announced a $2 million pre-seed funding round led by XYZ Venture Capital and Amplify.LA. According to Nick LaRovere, a co-founder of Pryzm, “Our primary target market has been the VC-backed defense tech companies.”
Pryzm’s clientele includes companies like Forterra, an autonomous vehicle manufacturer with $243 million in total funding, SysGit, a coding startup, and Decisive Point, a defense tech venture firm.
Drawing from their experiences at companies like Palantir and Lockheed Martin, the founders of Pryzm recognized the complex and time-consuming nature of bidding for military contracts. To address this, Pryzm collects data from various sources such as contracts, congressional hearings, and news reports to provide clients with a personalized dashboard. This dashboard includes information on available unallocated funds, key decision makers in the government, and details of previously awarded contracts, enabling startups to better understand their competition and potential opportunities.
LaRovere highlighted how Pryzm’s services resemble what Palantir does for different types of data, indicating that Pryzm could be seen as a “Palantir for contracting.”
Pryzm not only assists companies in navigating the contracting process but also helps them understand the nuanced “soft power” dynamics involved. LaRovere emphasized the importance of influencing and staying ahead of the curve in the defense tech sector to secure valuable contracts.
The ultimate goal of Pryzm is to provide companies with insights into emerging sectors and the key influencers within the government to enhance their chances of receiving funding. Pryzm’s vision extends beyond its data dashboard to encompass tools for managing data throughout the contracting process, targeting not only startups but also larger prime contractors and expanding into other government contracting sectors.
Ross Fubini of XYZ Venture Capital, a co-leader in Pryzm’s pre-seed funding round, believes that the growth of defense tech startups like Pryzm will have positive implications for the broader society, emphasizing that improved products for the government benefit citizens as a whole.
