Govini, a defense tech software startup taking on the likes of Palantir, has blown past $100 million in annual recurring revenue, the company announced Friday.

“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. With how “big this market is, we can keep growing for a long, long time, and that’s really exciting.”

CAGR stands for compound annual growth rate, a measurement of the rate of return.

The Arlington, Virginia-based company also announced a $150 million growth investment from Bain Capital. It plans to use the money to expand its team and product offering to satisfy growing security demands.

In recent years, venture capitalists have poured more money into defense tech startups like Govini to satisfy heightened national security concerns and modernize the military as global conflict ensues.

The group, which includes unicorns like Palmer Luckey’s Anduril, Shield AI and artificial intelligence beneficiary Palantir, is taking on legacy giants such as Boeing, Lockheed Martin and Northrop Grumman, that have long leaned on contracts from the Pentagon.

Dougherty, who previously worked at Palantir, said she hopes the company can seize a “vertical slice” of the defense technology space.

The 14-year-old Govini has already secured a string of big wins in recent years, including an over $900-million U.S. government contract and deals with the Department of War.

Govini is known for its flagship AI software Ark, which it says can help modernize the military’s defense tech supply chain by better managing product lifecycles as military needs grow more sophisticated.

“If the United States can get this acquisition system right, it can actually be a decisive advantage for us,” Dougherty said.

Looking ahead, Dougherty told CNBC that she anticipates some setbacks from the government shutdown.

Navy customers could be particularly hard hit, and that could put the U.S. at a major disadvantage.

While the U.S. is maintaining its AI dominance, China is outpacing its shipbuilding capacity and that needs to be taken “very seriously,” she added.

Dougherty also noted China’s dominance in rare earths and processed minerals that are critical to making parts and systems for the military.

“The rare earth crisis that we’re in is a serious one,” she said, “because one of the things that you can see in the data that we have in our proprietary data set tracks national security programs down to the raw materials.”

The post Defense startup taking on Palantir hits $100 million in ARR appeared first on Our Story Insight.