Govini is a defense technology software startup that: PalantirAnnual recurring revenue exceeded $100 million, the company announced Friday.
“We’re growing at a three-year CAGR of more than 100%, and we expect that growth to continue next year,” CEO Tara Murphy-Doherty said in an interview with CNBC’s Morgan Brennan. “This market is so large that we can continue to grow over the long term, which is really exciting.”
CAGR stands for Compound Annual Growth Rate and is a measure of rate of return.
The Arlington, Virginia-based company also announced a $150 million growth investment from Bain Capital. The company plans to use the funding to expand its team and product offerings to meet growing security demands.
In recent years, venture capitalists have poured more money into defense technology startups like Govini to meet growing national security concerns and modernize the military as global conflicts continue.
This group includes unicorns such as Palmer Lucky’s Anduril, Shield AI, and Palantir, which benefits from artificial intelligence and is pitted against traditional giants such as: boeing, lockheed martin and Northrop Grummanthey have long relied on contracts from the Department of Defense.
Doherty, who previously worked at Palantir, said he hopes the company can capture a “vertical slice” of the defense technology space.
At 14 years old, Govini has already racked up a string of big wins in recent years, including more than $900 million in U.S. government contracts and a contract with the Department of the Army.
Govini, known for its flagship AI software Ark, says it can help modernize the military’s defense technology supply chain by improving product lifecycle management as the military’s needs become more sophisticated.
“If the United States can get this acquisition system right, it could actually be a decisive advantage for us,” Doherty said.
Looking ahead, Dougherty told CNBC that he expects some setbacks due to the government shutdown.
Naval customers could be particularly hard hit, potentially putting the United States at a significant disadvantage.
She added that while the US maintains its AI advantage, China has surpassed its shipbuilding capabilities and this needs to be taken “very seriously.”
Mr. Dougherty also noted China’s dominance in rare earths and processed minerals, which are critical to manufacturing military parts and systems.
“The rare earths crisis we are in is serious because one of the things we learn from the data in our proprietary dataset is that it tracks national security programs down to their raw materials,” she said.
