Yurts, a leader in secure and trusted generative AI (GenAI) integration at scale for defense, government, and enterprise customers, announced 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 utilize 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. And Yurts had recently delivered the first AI platform for the US Department of Defense (DoD) on a secret-level network, offering new insights and superior decision-making capabilities for operational leaders and field personnel.
The company has emerged as a trusted AI partner in the public sector and 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, but it can be deployed on-premise, ensuring maximum security and control for organizations handling sensitive information.
Yurts’s AI integration platform has been deployed in many 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.
Even though Yurts’s primary focus remains on the DoD and national security, its solutions are equally important 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.
The Series B funding round 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.
KEY QUOTES:
“As GenAI adoption matures, the challenge is no longer about demos and pilots; it’s about delivering tangible results. 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.”
“Defense and enterprise organizations face the same fundamental challenge: how to connect AI to their existing systems to unlock new workflows and insights. This is where Yurts comes in. We provide the secure, integrated foundation that makes AI usable and transformative—not just theoretical.”
“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. 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.”
- Ben Van Roo, Co-Founder and CEO of Yurts
“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. 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.”
- Ross Fubini, Managing Partner at XYZ Venture Capital, who led the deal
