Capitol AI, a secure artificial intelligence platform for high-stakes decision workflows, expects to launch a capital raise in the first half of 2027, said co-founder and CEO Shaun Modi.

The Washington, DC-based company will seek between USD 20m and USD 30m and target financial and strategic investors, sovereign wealth funds, and family offices, according to Modi. It may hire an advisor to run that process, he said.

Capitol AI expects at least USD 10m in annual recurring revenue (ARR) and profitability before kicking off the raise, Modi said. The debt-free company grew ARR by 4x in 2025, with 7x growth expected going into 2027, he added.

Enterprise AI companies such as Capitol AI in highly regulated, low-churn industries with “deep moats” can command valuation multiples up to 20x to 30x ARR, the CEO noted.

Capitol AI has raised more than USD 10m in outside capital, completing its last financing in early 2025, Modi said. Investors include Together Fund, Designer Fund, Y Combinator, and the three co-founders of Airbnb, where Modi previously worked as design lead. He also worked in similar roles at Google, Motorola, NASA, and Nokia.

Proceeds from the potential upcoming raise will be used to accelerate growth in the US and UK, hire engineers, and support commercialization of a self-service version of its product that it plans to launch within the next three months, according to Modi.

The company, which has grown organically to date, may also consider strategic acquisitions of US- and UK-based technology companies with “solid intellectual property, highly talented teams, deep institutional knowledge, and the infrastructure to help us accelerate growth in regulated markets where security clearances are required,” he said

Capitol AI’s software helps organizations quickly turn large volumes of internal data into clear reports and insights. The secure AI assistant searches documents, analyzes information, and produces decision-ready materials for regulated sectors such as professional services, financial services, and government agencies, particularly around national security.

Current high-demand use cases include regulatory compliance and automation, and “anything diligence related,” according to Modi, who said Capitol AI will expand into classified data later this year.

Modi said Capitol AI would like to go public, potentially within three to five years, though the CEO did not rule out a sale of the business, noting that banks, professional services firms, technology companies, and system integrators would be logical buyers. Capitol AI’s closest public comparable is Palantir, he said.

Capitol AI was founded in 2021 by Modi and CTO Tom Hallaran. The two co-founders, both in their early 40s, own the combined majority stake, Modi said.

The company has 22 employees and approximately 10 customers, primarily mid-market organizations along with some Fortune 100 customers, including one of the four largest global consultancies, Modi said.

Earlier this year, the company expanded into the UK with an office in London.

Capitol AI competes primarily with in-house teams, Modi said. He noted large enterprise AI and data platforms such as Databricks, Palantir, and Glean, while adding, “Our price point is much more affordable.”

According to Modi, companies in the US and UK are increasingly wary of becoming locked into a single AI provider as reliance on large model developers such as OpenAI and Anthropic deepens, driving demand for Capitol AI’s services. He said executives are raising concerns about data sovereignty and competitive risk, noting that uploading proprietary information to external platforms could expose sensitive insights or enable providers to develop competing products for the same customer base.

At the same time, as leading AI labs scale and pursue public market strategies, customers fear price increases, tighter rate limits, and caps on usage, with many organizations prioritizing model independence, the CEO added.

Capitol AI uses law firm Gunderson Dettmer and accounting firm Andersen.