Archon

What do they actually do

Archon builds tools to help SaaS companies meet federal cloud security requirements (FedRAMP) faster. The product combines prebuilt, "pre‑compliant" infrastructure and an SDK to implement required controls like authentication, logging, access management, and monitoring, along with policy tooling that generates and maintains the large security documentation packages agencies expect archon.inc docs.

Archon is not an auditor; they guide customers through assessments with partnered accredited Third‑Party Assessment Organizations (3PAOs) and help package evidence and handle FedRAMP PMO inquiries during review archon.inc/how-it-works docs: FedRAMP flow. The company markets a material reduction in cost and timeline to reach authorization compared to the status quo, via its "FastTrack" approach and automation site YC profile.

Who are their target customer(s)

• Early-stage SaaS founders building cloud products for federal buyers: They face a long, opaque FedRAMP path that can take a year or more and significant spend, pulling engineers into non-core work and blocking sales. Archon targets this by providing ready-made controls and documentation generation to compress the early lift YC docs.
• Series A/growth-stage SaaS teams expanding into government: They must retrofit products to meet NIST SP 800‑53 controls and prepare a detailed System Security Plan and evidence, which disrupts product roadmaps. Archon’s modules and policy tools aim to reduce that retrofit and paperwork burden docs.
• Product and engineering teams responsible for shipping features: They end up building low‑level security plumbing (auth, logging, access controls, monitoring) that isn’t core IP and slows releases. Archon provides these components pre‑configured for FedRAMP baselines docs.
• Security/compliance teams preparing for audits and PMO review: They struggle to collect continuous evidence, coordinate 3PAOs, and respond to PMO questions, creating unpredictable timelines. Archon supports evidence packaging and coordinates with partnered assessors docs.
• Vendors selling to state/local or defense contractor ecosystems: StateRAMP or federal-equivalent controls are increasingly required by states and defense supply chains, leading to duplicate certification work. Archon positions its stack to help with StateRAMP-like requirements too site.

How would they acquire their first 10, 50, and 100 customers

• First 10: Run high‑touch pilots from YC and warm intros, offering a free readiness assessment and a time‑boxed build of missing controls plus an initial evidence package to create repeatable templates and case studies YC docs.
• First 50: Expand via VC portfolio referrals and channel partners (3PAOs, cloud providers); sell short, paid “prepare‑for‑government” pilots to Series A teams and publish practical how‑to guides that mirror the pilot steps YC FedRAMP details.
• First 100: Productize onboarding into a self‑serve checklist, connectors, and an evidence pipeline; drive inbound through webinars, VC partners, marketplaces, and targeted outbound to companies pursuing contracts; land with compliance lift and expand to ongoing monitoring support overview.

What is the rough total addressable market

Top-down context:

Federal agencies plan roughly $95B in civilian IT spending in FY2024 (excluding some DoD categories), showing the scale of public‑sector IT budgets GAO. As of late 2025, the FedRAMP Marketplace lists 479 authorized cloud services, plus additional Ready and In‑Process offerings, indicating a sizable installed base that must maintain compliance FedRAMP.

Bottom-up calculation:

Assume ~150 new cloud services seek authorization annually (FY2025 pace accelerated) and ~480 already‑authorized services require ongoing monitoring. If Archon monetizes at ~$300k for initial build/readiness and ~$100k/year for ongoing evidence/monitoring, annual TAM ≈ (150×$300k) + (480×$100k) ≈ ~$93M, with upside from StateRAMP and defense-adjacent work FedScoop on 2025 pace FedRAMP counts.

Assumptions:

• Archon can serve both net-new authorizations and a portion of the existing authorized base.
• Average initial and ongoing contract values approximate a blend of software + services for compliance automation and support.
• FY2025 authorization throughput remains elevated, but even at lower run‑rates (e.g., 100/year) TAM remains tens of millions.

Who are some of their notable competitors

• Vanta: Compliance automation platform with FedRAMP readiness workflows, evidence collection, and templates; it prepares packages but is not an independent assessor/3PAO Vanta help.
• Drata: Similar to Vanta, Drata maps controls, automates checks, and manages artifacts for FedRAMP readiness; it does not perform the official 3PAO assessment product glossary.
• Secureframe: GRC automation with FedRAMP readiness tooling and integrations, plus a partner network of assessors; it streamlines prep but authorization still requires an accredited 3PAO overview hub.
• Coalfire: Accredited FedRAMP 3PAO offering readiness, assessments, pen tests, and official reports used for ATOs; sells hands‑on audit and advisory services rather than SaaS alone Coalfire.
• A‑LIGN: Accredited FedRAMP 3PAO providing readiness consulting, formal assessments, and continuous monitoring support for federal authorizations A‑LIGN.