Helios Secures $4 Million Seed Funding to Revolutionize Public Policy with AI Operating System

In a world increasingly shaped by complex regulations, rapidly evolving legislation, and intricate stakeholder networks, the work of public policy, regulatory affairs, legal, and compliance professionals is more challenging than ever. These critical roles, often operating at the intersection of government and enterprise, rely heavily on meticulous research, detailed analysis, precise communication, and strategic relationship management. Yet, the tools available to support these functions have, for too long, lagged behind the technological advancements seen in other sectors. Decision-making, even at the highest levels, frequently depends on a patchwork of disparate software, cumbersome spreadsheets, and the invaluable but often siloed resource of institutional memory.

This is the landscape that Helios, a new startup emerging from stealth, aims to transform. Founded by individuals with deep roots in national security and public service, Helios is building what it calls an AI-native operating system designed specifically for the unique demands of the public policy ecosystem. The company recently announced $4 million in seed funding, led by Unusual Ventures, with participation from Founders Inc. and Alumni Ventures, signaling significant investor confidence in their vision.

The genesis of Helios can be traced back to 2022, a period when large language models (LLMs) like OpenAI's ChatGPT were capturing global attention. While the public was marveling at the conversational capabilities of these models, Joe Scheidler, then helping establish the White House's new cybersecurity office, and Joseph Farsakh, engaged in sensitive peace negotiations at the State Department, were contemplating a different application: how AI could fundamentally reshape the day-to-day realities of public policy work. Their shared experiences navigating complex governmental processes highlighted a clear need for more sophisticated, integrated tools.

Their discussions, born from overlapping national security circles, revolved around the inefficiencies inherent in traditional policy workflows. They envisioned a future where AI could not only assist but actively empower policy professionals, freeing them from tedious, manual tasks to focus on strategic engagement and critical thinking. To bring this vision to life, they partnered with Brandon Smith, a machine learning expert with experience at tech giants like Microsoft and Datadog, who now serves as Helios's CTO, leading the technical development of their platform.

"Our unfair advantage is bringing a super unique blend of domain expertise, contacts, and technical expertise to a really important problem," Scheidler told TechCrunch, emphasizing the founders' firsthand understanding of the challenges they are trying to solve.

The company's flagship product, Proxi, is currently in beta but is already gaining traction. According to Scheidler, early users include professionals in federal, state, and local government agencies, as well as teams within Fortune 500 companies and startups. This early adoption across diverse sectors underscores the universal need for better tools in navigating the regulatory and policy landscape.

The Challenges of Modern Public Policy Work

Before diving into how Proxi addresses these issues, it's crucial to understand the inherent complexities of the public policy domain. Professionals in this field are tasked with monitoring, analyzing, and influencing governmental decisions across local, national, and international levels. This involves:

• Information Overload: Tracking legislation, regulations, court decisions, agency guidance, and public discourse from countless sources.
• Complex Analysis: Parsing lengthy, often dense legal and policy documents to understand their implications.
• Stakeholder Management: Identifying, engaging with, and managing relationships with a wide array of individuals and groups, including lawmakers, regulators, industry associations, NGOs, and the public.
• Content Creation: Drafting memos, policy briefs, regulatory comments, testimony, and other critical documents under tight deadlines.
• Risk Assessment: Identifying potential policy or regulatory changes that could impact an organization or government function.
• Manual Processes: Much of this work still relies on manual research, copy-pasting, spreadsheet tracking, and email communication, leading to inefficiencies and potential errors.

These challenges are compounded by the dynamic nature of policy environments, where changes can happen rapidly and with significant consequences. The need for timely, accurate information and efficient workflows is paramount.

Introducing Proxi: An AI-Native Operating System

Helios's answer to these challenges is Proxi, an AI-based operating system designed as an end-to-end solution for policy, legal, and compliance professionals. Scheidler describes Proxi as deploying a "web of secure AI agents that are trained and fine-tuned against really robust public policy data sets." The goal is to provide comprehensive support, from strategic advisement to complex writing and data analysis.

Proxi is built around four core features, each designed to address a specific pain point in the policy workflow:

1. Consult: The Always-On Policy Advisor

The "Consult" feature acts as a conversational AI agent, envisioned as a constant, vigilant team member. Users provide Proxi with details about their work, portfolio, focus areas, and objectives. The AI agents then continuously scan the legislative and regulatory environment, surfacing key information relevant to the user's specific needs upon login. This proactive monitoring helps professionals stay ahead of developments without the need for constant manual searching.

This capability is reminiscent of other AI platforms aimed at monitoring complex external environments. For instance, Hence, another startup covered by TechCrunch, uses AI to help organizations monitor geopolitical and business risk, highlighting a broader trend of applying AI to external intelligence gathering for strategic purposes. Proxi applies this concept specifically to the policy and regulatory domain, offering a tailored intelligence feed.

2. Scribe: Collaborative AI Writing and Editing

Policy work is inherently document-intensive. Memos, filings, policy briefs, and regulatory comments require precise language and adherence to specific formats. The "Scribe" feature is designed to streamline this process. It functions as a collaborative AI editing and writing tool, helping users transform insights gained from the "Consult" agent or their own research into polished, professional documents. This feature aims to reduce the time spent on drafting and editing, allowing professionals to produce high-quality written materials more efficiently.

3. Decipher: Large-Scale Data Analysis

Understanding the implications of lengthy bills, reports, and filings is a time-consuming but essential part of the job. The "Decipher" feature tackles this challenge by providing large-scale data analysis capabilities. It helps users parse complex, long-form documents, extracting structured insights, identifying key provisions, and generating risk alerts. Scheidler highlighted this feature's value, noting, "That’s a lot of what I spent my time doing at the State Department when I would have far preferred to just be on the Hill, building relationships with people who are actually making draft amendments and provisions." By automating the initial analysis, Decipher allows professionals to focus on strategic engagement and interpretation rather than manual data extraction.

4. CRM: Stakeholder Mapping and Relationship Management

Effective public policy and regulatory affairs rely heavily on building and maintaining relationships. Proxi includes a built-in CRM tool specifically tailored for this environment. It helps users visually map out their stakeholder environment, track interaction history, and store meeting notes. This integrated approach ensures that valuable relationship data is connected to the policy intelligence and document creation workflows, providing a holistic view of the policy landscape and the key players within it.

Taken together, these four features form an integrated operating system designed to provide end-to-end automation and support for the multifaceted tasks of policy professionals. By combining monitoring, analysis, writing, and relationship management in a single platform, Helios aims to create a force multiplier for teams navigating complex external environments.

Security and Compliance: A Critical Foundation

Given the sensitive nature of public policy and government work, security and compliance are paramount. Helios understands this necessity, particularly when working with federal clients. The company states that it uses top encryption standards and is actively working through necessary compliance audits. Building trust through robust security measures is essential for adoption in these critical sectors.

The Team's "Unfair Advantage"

The founding team's background is a key differentiator for Helios. Joe Scheidler's experience in the White House cybersecurity office provided firsthand insight into the operational needs and challenges of high-level government functions. Joseph Farsakh's work on complex international negotiations at the State Department offered a deep understanding of intricate policy processes and stakeholder dynamics. Brandon Smith brings the necessary technical expertise in machine learning and AI development to translate this domain knowledge into a functional, powerful software platform.

This combination of deep policy expertise and cutting-edge technical capability positions Helios uniquely. They are not just building an AI tool; they are building a tool informed by the lived experience of the professionals they aim to serve. This understanding is crucial for developing a system that is not only technically capable but also intuitively aligned with the workflows and priorities of policy teams.

Market Landscape and Competition

The market for tools supporting government and policy professionals is diverse, ranging from traditional data providers to modern software platforms. Helios enters a landscape with both established players and emerging competitors.

Existing tools like Bloomberg Government and Fiscal Note Forum provide valuable data and monitoring services, but they may not offer the same level of integrated, AI-native automation that Proxi aims to deliver. These platforms often serve as essential data sources, but the analysis and action based on that data still require significant manual effort.

In the longer term, Helios sees potential competition with larger players in the government and enterprise data space, such as Palantir, OpenGov, and Civica. These companies offer broad platforms for data analysis, government operations, and citizen services. While their scope is often wider, Helios is focusing specifically on the workflow of policy, regulatory, and legal teams, aiming to provide a deeply specialized operating system.

Scheidler acknowledged the scale of these potential rivals, noting Palantir's significant market capitalization. However, he believes there is ample room for specialized AI solutions in this vast market. "We think there’s a lot of room to play in this space over time," he stated, suggesting that a focused, AI-native approach could carve out a significant niche.

The emergence of AI is also spurring innovation across the GovTech sector. Startups are exploring various applications, from improving public services to enhancing internal government operations. Helios's focus on the policy and regulatory function represents a specific, high-impact application of AI, targeting the complex information flows and strategic decision-making processes that underpin governmental and corporate interactions with the public sphere.

Funding and Future Plans

The $4 million seed funding round provides Helios with the resources to further develop Proxi and scale its operations. A primary focus for the company is building out its product and engineering teams, ensuring they have the technical talent required to refine and expand the AI capabilities of the platform. Finding the right mix of AI expertise and domain understanding will be crucial for their success.

Rather than prioritizing rapid monetization, Helios is currently focused on building long-term business relationships and collecting detailed feedback from its early beta users. This approach suggests a commitment to developing a product that truly meets the needs of its target audience, iterating based on real-world usage and challenges. This feedback loop is vital for fine-tuning the AI models and ensuring the platform delivers tangible value.

The company's ambition is significant. Scheidler articulated a bold long-term goal: "Our goal in five to seven years from now is for Helios to be completely synonymous with all government public and private interaction." This vision extends beyond simply providing a software tool; it aims for Proxi to become the central nervous system for navigating the complex interactions between public and private sectors.

The Potential Impact of AI in Public Policy

The successful application of AI in public policy could have far-reaching implications. By automating routine tasks and providing enhanced analytical capabilities, platforms like Proxi could:

• Increase Efficiency: Freeing up policy professionals' time to focus on higher-value activities like strategic thinking, negotiation, and relationship building.
• Improve Decision Quality: Providing faster access to more comprehensive and structured information, leading to more informed decisions.
• Enhance Transparency and Accessibility: Potentially making policy information more accessible and understandable (though this depends on platform design and implementation).
• Strengthen Risk Management: Proactively identifying potential regulatory or legislative risks before they become major issues.
• Facilitate Collaboration: Providing a shared platform for teams to manage information and stakeholders.

However, the integration of AI into such sensitive areas also raises important considerations, including data privacy, security, algorithmic bias, and the need for human oversight. Helios's focus on security and compliance is a necessary step in addressing these concerns.

The development of AI tools specifically designed for the nuances of public policy work represents a significant evolution in the GovTech and RegTech (Regulatory Technology) sectors. It moves beyond simple data aggregation to providing intelligent assistance and automation tailored to the unique demands of navigating governmental and regulatory landscapes.

Conclusion

Helios's emergence from stealth with $4 million in seed funding marks a notable step in the application of AI to the complex world of public policy and regulatory affairs. By leveraging the firsthand experience of its founders and the technical expertise of its team, the company is building Proxi, an AI-native operating system designed to automate tasks, enhance analysis, and improve stakeholder management for professionals in government and enterprise.

With its four core features – Consult, Scribe, Decipher, and CRM – Proxi aims to provide an integrated solution to the challenges of information overload, complex analysis, and manual workflows that have long characterized this field. The focus on security and compliance is critical for building trust in the sensitive environments where Proxi is intended to operate.

While the market includes established players and larger potential competitors, Helios believes its specialized, AI-native approach offers a distinct advantage. The company's current focus on product development and gathering beta user feedback, rather than rushing to monetization, suggests a strategic approach to building a robust and valuable platform.

The success of Helios and platforms like Proxi could signal a broader shift in how public policy and regulatory work is conducted, moving towards more efficient, data-driven, and AI-assisted processes. As governments and businesses grapple with increasingly complex global challenges, tools that can streamline the navigation of policy landscapes will become ever more essential. Helios is positioning itself at the forefront of this transformation, aiming to become the indispensable AI operating system for the professionals who shape the future of public and private interaction.

The journey from beta traction to becoming synonymous with government-public-private interaction is ambitious, but the foundational elements – a team with deep domain expertise, a clear focus on user pain points, and significant early investment – suggest that Helios is well-positioned to pursue its goal of bringing AI-powered efficiency to the critical field of public policy.