Yurts Secures $40M In Series B Funding To Accelerate Growth for Mission-Critical Defense, Government, and Enterprise Systems

The funding round, led by XYZ Venture Capital, expands Yurts’ impact of empowering users by unlocking workflows with efficient, highly secure AI solutions.

SAN FRANCISCO, December 3, 2024 — Yurts, a leader in secure and trusted generative AI (GenAI) integration at scale for defense, government, and enterprise customers, announced today a $40 million Series B funding round led by XYZ Venture Capital, with participation from Glynn Capital, Nava Ventures, Bloomberg Beta, and Mango Capital. Yurts will use this funding to accelerate its growth and capabilities in leading an industry shift from experimental GenAI use to deep integration across mission-critical systems, unlocking real value within secure environments. 

Recently, Yurts delivered the first AI platform for the United States Department of Defense (DOD) on a secret-level network, providing new insights and superior decision-making capabilities for operational leaders and field personnel. Yurts has also won several additional enterprise deployments and government contracts, delivering a critical integration layer between models and internal applications that unlocks new workflows within high-security environments. 

“As GenAI adoption matures, the challenge is no longer about demos and pilots; it’s about delivering tangible results,” said Ben Van Roo, Co-Founder and CEO of Yurts. “For both the DOD and large enterprises, this means connecting AI to the systems that matter most—your systems of record and mission-critical applications. Yurts is purpose-built to meet this need, securely integrating AI where it can truly transform operations.”

Yurts has emerged as a trusted AI partner not just in the public sector but also in commercial enterprises. Large organizations in industries such as manufacturing and aerospace face similar challenges: integrating AI into legacy systems to unlock productivity, reduce costs, and provide users with a trusted resource that removes barriers to getting things done. Yurts’s approach is uniquely designed to address these parallels, combining precision, scalability, and compliance in secure environments. Importantly, Yurts does not train on a company’s proprietary data and can be deployed on-premise, ensuring maximum security and control for organizations handling sensitive information.

Yurts’s AI integration platform has been deployed in high-security settings across unclassified, sensitive, and secret environments, ensuring compliance with Department of Defense standards for sensitive data. With contracts spanning the U.S. Army, U.S. Air Force, Department of Energy, and SOCOM, Yurts is trusted to deliver AI solutions that strengthen mission-critical systems. Nearly 25% of Yurts’s workforce holds active security clearances, underscoring the company’s deep expertise in high-security environments.

“Yurts has broken out as a clear leader in the category of AI integration with their emphasis on deploying and scaling a solution grounded in data with a security-first framework,” says Ross Fubini, Managing Partner at XYZ Venture Capital, who led the deal. “Founders Ben Van Roo, Jason Schnitzer, and Guru Raghavan have built an AI platform that can be deeply integrated within high-security environments. This is a significant catalyst for both Yurts and the military, enabling the seamless integration of advanced AI capabilities into critical national security workflows. The company is positioned to meet the current and future need for AI head-on, and we’re proud to support them in this mission.”

While Yurts’s primary focus remains on the DOD and national security, its solutions are equally transformative for enterprises. A recent expansion of Yurts’s partnership with Oracle highlights the company’s ability to support commercial customers in modernizing their systems of record with AI, ensuring that GenAI delivers real, actionable value in complex, high-stakes environments.

“Defense and enterprise organizations face the same fundamental challenge: how to connect AI to their existing systems to unlock new workflows and insights,” added Van Roo. “This is where Yurts comes in. We provide the secure, integrated foundation that makes AI usable and transformative—not just theoretical.”

The Series B funding brings Yurts’s total investment to $58 million, enabling the company to scale operations, expand its team, and deepen its focus on connecting GenAI to mission-critical systems. With a proven track record in both the public and private sectors, Yurts is poised to redefine how organizations harness the power of AI in high-security environments.

“Right now, GenAI is only scratching the surface in terms of value for users. Yurts is bridging the gap between humans, GenAI, and the systems that matter most in meaningful and adaptable ways,” said Van Roo. “Over the past two years, we’ve developed technologies that move GenAI beyond experimentation, making it usable, secure, and impactful for the most critical and complex missions. Looking ahead, we’re focused on expanding these capabilities with our customers in the DOD, government, and commercial sectors—ensuring AI is flexible enough to meet their needs today and evolve with them for the future.”

About Yurts

Yurts delivers secure, production-ready AI solutions designed to transform mission-critical workflows in defense, government, and enterprise environments. Founded by Ben Van Roo, Jason Schnitzer, and Guruprasad Raghavan, Yurts originated from a strategic collaboration with the Department of Defense. Its AI integration platform connects models to high-security systems of record, enabling organizations to unlock operational insights, enhance decision-making, and achieve unprecedented productivity. Learn more at www.yurts.ai.

About XYZ Venture Capital

XYZ Venture Capital is a San Francisco and New York-based firm specializing in early-stage investments in transformative technologies. Founded by Ross Fubini, XYZ has backed companies like Anduril, Verkada, and Apex Space, focusing on overlooked industries poised for disruption. Learn more at xyz.vc.

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