by Deborah Balshem
February 18, 2026
r4 Technologies, a cross enterprise artificial intelligence (AI) software firm, is about midway through a USD 100m-USD 150m capital raise, said founder and CEO Paul Breitenbach.
Existing investor Adit Ventures is leading the round and Latham & Watkins, r4’s corporate law firm, is advising, according to Breitenbach. Proceeds will support organic growth, partnerships, and potential M&A, he said.
Ridgefield, Connecticut-based r4 is primarily targeting strategic investors and family offices but remains open to traditional financial sponsors, the CEO added.
The current round is slated to be the last prior to an anticipated exit in the fourth quarter of this year or in the first quarter of 2027, likely via an initial public offering or sale to a strategic, Breitenbach said. The public markets “look very promising,” he added, noting r4 is mostly compared to the “Palantirs of the world.”
No advisors have been mandated yet for the expected public listing or sale, the CEO said.
r4’s cross enterprise AI platform brings together data from across the enterprise, regardless of location or format, in a secure private cloud. It then adds external data on customer segments, locations, distribution models, and other variables to create a unified model of a business and its markets that helps uncover new revenue opportunities and cost efficiencies.
The company is projecting revenue between USD 100m and USD 200m this year, up from “tens of millions” in 2025, according to Breitenbach. Roughly 85% of revenue is recurring, with that percentage growing as customers migrate from services to software, he added.
Multiples in the space vary widely, from 10x revenue to as high as 30x-50x in some cases, the CEO said.
r4 is debt-free and became profitable last year, though the company continues to reinvest, said Breitenbach. Its goal is to reach Rule of 40 by the end of this year or in early 2027. The Rule of 40 is a SaaS performance metric stating that a company’s revenue growth rate plus its EBITDA margin should total at least 40%.
Breitenbach, 56, was a founding team member and former CMO of Priceline. He founded r4 in 2013 alongside former Priceline executives. The co-founders own the majority of the company, Breitenbach said.
The company has raised more than USD 100m in capital, with the Priceline team investing “the bulk of that.” r4 last raised capital in early 2024. Investors include Adit Ventures, Pilot Growth Equity, and Parkway Venture Capital.
r4’s three core verticals are commercial, public services, defense and national security. It serves mid-size and enterprise organizations and has dozens of customers, Breitenbach said. The US is its largest market, followed by Europe, and the company is expanding into Southeast Asia and the Middle East.
Increased defense spending is providing significant industry tailwinds, Breitenbach noted. Earlier this year, President Donald Trump proposed an increase in defense spending to USD 1.5tn for the 2027 fiscal year, which represents a roughly 50% surge from the roughly USD 905bn approved for 2026.
Last year, r4 acquired DPRA to expand its enterprise AI platform across defense missions. The tuck-in deal was funded through cash and stock, Breitenbach said.
The company continues to evaluate targets for technology or geography. Ideal targets include “AI and more traditional software companies specialized in workflow systems and with an installed customer base, as well as a highly complementary computer vision company,” according to Breitenbach. Attractive new verticals include healthcare, he said.
r4 is interested in small as well as transformational acquisitions, with several large targets identified, Breitenbach said. The company is looking primarily in the US over the next year and then will expand its search internationally, he added.
Deals could be funded through any mix of cash, equity, earnout, and debt, the CEO said.
r4 has between 100 and 150 employees and expects to end this year with more than 500, given the rapid pace of AI adoption and a trend among companies toward “buying, rather than building” AI capabilities internally, Breitenbach said.
The company has additional offices in Oklahoma, Tennessee, Washington DC, Dublin, and Toronto. Its audit firm is CBIZ.
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