Defense tech startup Govini just crossed a major milestone, hitting $100 million in annual recurring revenue while securing $150 million from Bain Capital. The 14-year-old company is positioning itself as a direct challenger to Palantir in the rapidly growing government software market, with CEO Tara Murphy Dougherty projecting continued triple-digit growth as military modernization spending accelerates.
Govini just threw down the gauntlet in defense tech's biggest battleground. The Arlington-based startup announced it's blown past $100 million in annual recurring revenue while landing $150 million from Bain Capital – a double-barreled shot across the bow of established players like Palantir.
"We're growing faster than 100% in a three-year CAGR, and I expect that next year we'll continue to do the same," CEO Tara Murphy Dougherty told CNBC's Morgan Brennan in an interview. Her confidence isn't just swagger – it's backed by a string of massive government wins including an over $900 million U.S. government contract.
The timing couldn't be more strategic. Defense tech startups are riding a wave of unprecedented investor interest as global conflicts reshape military priorities. Venture capitalists have poured billions into companies promising to modernize aging Pentagon systems, with unicorns like Palmer Luckey's Anduril and Shield AI leading the charge against legacy giants Boeing, Lockheed Martin, and Northrop Grumman.
But Govini's path runs directly through Palantir's territory. Dougherty, who previously worked at the Peter Thiel-founded data analytics giant, knows exactly what she's up against. Her company's flagship AI software Ark targets the same government customers that have made Palantir a Wall Street darling, focusing on modernizing military supply chains and managing increasingly sophisticated defense procurement cycles.
"If the United States can get this acquisition system right, it can actually be a decisive advantage for us," Dougherty explained to CNBC, positioning software modernization as a national security imperative rather than just a business opportunity.
The competitive landscape is heating up fast. While Palantir has dominated government AI contracts for over a decade, newer entrants like Govini are betting they can move faster and integrate more seamlessly with existing Pentagon workflows. The company's 14-year track record – longer than many realized – includes partnerships with the Department of War and multiple branches of the military.
