Hazel: Government Contracting Marketplace Made for All

Hazel, founded by August Chen and Elton Lossner, is an innovative company that aims to revolutionize the government contracting process. Recognizing the complexity and inefficiency inherent in current systems, where contracts are scattered across numerous websites and bound by extensive regulations, Hazel offers a streamlined, AI-driven solution. By automating the discovery, drafting, and compliance checks of government contracts, Hazel not only saves businesses considerable time and resources but also opens up new opportunities for smaller firms to compete in the lucrative government contract market.

Idea and Product

The core idea behind Hazel is the utilization of artificial intelligence to simplify and enhance the process of bidding for government contracts. This platform enables users to easily find relevant contracts, generate draft responses based on specific request for proposal (RFP) criteria and their company information, and ensure compliance with necessary regulations. Hazel’s technology is designed to lower the barrier for entry, making it possible for smaller businesses to participate in a market traditionally dominated by larger entities with more resources to navigate the complex bidding process.


Hazel operates in the expansive and fragmented market of government procurement, targeting the $2 trillion annually spent by state and local governments in the United States. With over 11 million contracts signed each year by the federal government alone, the potential for Hazel to make a significant impact is immense. The platform caters to both businesses seeking government contracts and government entities looking to find the best vendors, addressing pain points on both sides of the procurement process.

Business Model

Hazel’s business model is centered on providing AI-powered procurement software to businesses and government entities. By facilitating a more efficient, equitable marketplace for government contracts, Hazel aims to attract a wide range of users from local businesses to large firms and government bodies.


The technological backbone of Hazel is its sophisticated AI and machine learning algorithms, which automate the discovery of contracts, the drafting of responses, and compliance checks. This AI-driven approach is designed to reduce human error and inefficiency, thereby transforming a previously daunting and time-consuming task into a streamlined and manageable process. Hazel leverages the latest in large language models (LLMs) to parse and understand the complexities of government RFPs and match them with the capabilities and offerings of different vendors.

Vision and Ambition

Hazel is driven by a vision to democratize access to government contracts, breaking down the barriers that small and medium-sized businesses face. By leveraging cutting-edge AI technology, Hazel aims to level the playing field, enabling more businesses to compete for and win government contracts. This ambition extends to improving government procurement itself, by bringing in a wider pool of high-quality bidders and delivering better outcomes for governments and citizens alike.


Hazel is led by a dynamic duo of engineers and entrepreneurs, August Chen and Elton Lossner. Both founders bring a wealth of experience from their previous roles at Palantir and Boston Consulting Group, respectively. Their combined expertise in technology, strategy, and the public sector underpins Hazel’s innovative approach to government contracting. The team’s background, including their education from Harvard and their entrepreneurial ventures, positions Hazel for success in the intersection of technology and government procurement.

Investors and Funding

Hazel’s participation in Y Combinator (YC W24) indicates strong early support from one of the tech industry’s leading accelerators. This backing not only validates Hazel’s market potential but also provides the company with valuable resources, mentorship, and access to a network of potential investors and partners.

Achievements and Milestones

Since its inception, Hazel has made significant strides in simplifying the government contracting process. By developing an AI-enabled marketplace that matches businesses with government contracts and ensures compliance, Hazel has positioned itself as a leader in procurement innovation. The company’s acceptance into the prestigious Y Combinator program further highlights its potential and marks a key milestone in its journey towards transforming government procurement.

Challenges and Risks

Hazel faces several challenges, including the accuracy and reliability of its AI-generated responses and compliance checks. The complexity of government contracts and the potential for AI to “hallucinate” or generate inaccurate content poses risks to the effectiveness of Hazel’s solution. Additionally, gaining trust from both businesses and government entities in the efficacy and security of an AI-driven platform is a significant hurdle.

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AI-enabled equitable marketplace for government contracts

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