Lowenstein represented XYZ Venture Capital, a San Francisco- and New York-based firm specializing in early-stage investments in transformative technologies, as lead investor in a $40 million Series B funding round in Yurts, a leader in secure and trusted generative AI (GenAI) integration at scale for defense, government, and enterprise customers.
Other investors included 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.
The Series B funding brings Yurts' 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.
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.
While Yurts' primary focus remains on the DOD and national security, its solutions are equally transformative for enterprises. A recent expansion of Yurts' 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 Lowenstein deal team included Carl J. Hessler, Tina Aoun, Noah R. Crousore, and Chynara Tolubaeva.
