I am thrilled to announce that Yurts has successfully raised $40 million in Series B funding led by XYZ Ventures, Glynn Capital, and Nava Ventures. This milestone reflects the trust our investors and customers have placed in us and positions us to expand our impact across defense, civilian, and enterprise sectors, helping organizations achieve transformative results in their most critical operations.
As we move into 2025, we're witnessing a profound shift in enterprise AI. The era of proof-of-concepts and controlled demonstrations is giving way to something far more demanding: the integration of AI into systems where lives, national security, and critical infrastructure hang in the balance. Organizations are moving beyond flashy demos and experimental projects, confronting the hard work of deploying AI into production to deliver real value.
This shift to integrate AI deeply with enterprise and mission-critical systems — is precisely why we founded Yurts in 2022. We saw that the real challenge wouldn't be in creating impressive demonstrations, but in building systems that could operate reliably in environments where failure isn't an option.
In the past year, we've achieved several breakthrough deployments that demonstrate what's possible when you combine cutting-edge AI with rigorous operational requirements:
What sets these achievements apart isn't just their technical complexity—it's the real-world impact they're having on critical operations. Our success isn’t achieved through shortcuts or hypothetical deployments. Instead, it comes from hundreds of hours spent alongside our users: embedding with military units during exercises, troubleshooting in secure facilities, and iterating based on direct feedback from operators in the field.
In a noisy market filled with flashy demos and generic AI solutions, Yurts is focused on what truly matters: privacy, security, and solving real problems. We never train on customer data, we offer the option to deploy on-premises for maximum control, and let organizations choose any LLM that works best for them. Plus, Yurts provides Retrieval-Augmented Generation (RAG) that delivers accurate, explainable insights tailored for high-stakes workflows. Notably, our end-to-end RAG pipeline has demonstrated superior performance compared to competitors including a market-leading approach produced by Contextual AI. Moreover, in evaluations against Anthropic’s Contextual Retrieval technique on the Codebases dataset, both systems delivered comparable performance, yet Yurts’ solution achieved this at a fraction of a percentage of the cost ($221,000, vs $715). These benchmarks highlight our commitment to delivering high-performance AI solutions that are also cost-effective.
The team behind these achievements reflects the unique challenge we're tackling. Nearly one-fourth of our employees hold security clearances, reflecting our commitment to operating in environments where trust and compliance are paramount. Our team is composed of engineers with a variety of expertise, researchers, business professionals, and veterans from the U.S. Armed Forces. We’ll always seek to bring holistic ideas and features to the table that rival the largest companies while remaining agile, innovative, and deeply customer-focused.
With this new funding, we’re doubling down on our founding thesis: AI's true value lies not in its raw capabilities, but in its ability to serve people and the most pressing challenges within the national security community, the public sector, and the commercial world. This purpose drives us to advance our progress in ways that may seem less glamorous in parts of the tech world: building bridges into legacy systems, across multi-cloud and hybrid infrastructure, deploying into highly secure and austere environments.
To our customers, investors, and partners: thank you for believing in our vision of making AI work where it matters most. Whether you’re an innovator looking to join our team or an organization seeking to deploy AI in your most critical operations, we’d love to hear from you. Visit our careers page or contact us directly to explore how we can work together.
Together, we’re not just imagining the future of mission-critical AI—we’re building it, battle-tested and ready. Let’s get to work.
