Defense startup acquiring Palantir hits $100M in ARR

Jovini, A Defense technology Software startup takes on likes PalantirThe company announced Friday that its annual recurring revenue exceeded $100 million.

“We are growing faster than 100% over a three-year CAGR, and I expect we will continue to do the same in the coming year,” CEO Tara Murphy Dougherty told CNBC. Morgan Brennan In an interview. “With the size of this market, we can continue to grow for a very long time, which is really exciting.”

CAGR stands for compound annual growth rate, which is a measure of rate of return.

The Arlington, Virginia-based company also announced a $150 million growth investment from Bain Capital. It plans to use the funds to expand its team and product offering to meet growing security requirements.

In recent years, venture capitalists have poured more money into defense technology startups like Jovini to meet growing national security concerns and modernize the military as global conflict erupts.

The group includes unicorns like Palmer Luckey’s Anduril, Shield AI and artificial intelligence Palantir beneficiary, dealing with legacy giants like Boeing, Lockheed Martin and Northrop Grummanwhich has long relied on contracts from the Pentagon.

Dougherty, who previously worked at Palantir, said she hopes the company can capture a “vertical slice” of the defense technology space.

The 14-year-old Jovini has already secured a series of big wins in recent years, including a US government contract worth more than $900 million and deals with the War Department.

Govini is best known for its groundbreaking Ark AI software, which it says can help modernize the military’s defense technology supply chain by better managing product life cycles as military needs become more sophisticated.

“If the United States can get this acquisition system right, that could actually be a critical advantage for us,” Dougherty said.

Looking ahead, Dougherty told CNBC she expects some setbacks from the government shutdown.

Navy customers could be particularly hard hit, and that could put the United States at a significant disadvantage.

While the United States maintains its dominance in the field of artificial intelligence, China She added that the company exceeds its capacity to build ships and this should be taken “seriously.”

Dougherty also pointed to China’s dominance of rare earths and processed metals that are essential for making parts and systems for the military.

“The rare earth crisis that we face is a serious one, because one of the things you can see in the data that we have in our data set tracks national security programs all the way back to the raw materials,” she said.