Falls Church, VA (February 24, 2026) – Scare the Bear Capital (STB), a private equity investment firm focusing specifically on lower middle market businesses supporting Federal Government missions, announced today that its portfolio company Knexus was acquired by DC Capital Partners.
Founded in 2006 and headquartered in Vienna, Virginia, Knexus is a trusted partner to U.S. defense and civilian agencies, designing, building, and operating enterprise-grade AI systems that enable secure adoption of next-generation AI in production environments. The Company maintains long-standing client relationships across defense and civilian agencies and has tremendous expertise in deploying Google enabled AI solutions. Knexus is a Google Public Sector Premier Partner, implementation partner for Gemini for Government and received the 2025 Google Cloud Partner of the Year Award for Business Applications in Government, reinforcing its role as a trusted bridge between leading commercial AI technologies and federal mission requirements.
Scare the Bear Capital invested in Knexus in 2024 and supported several value-added initiatives that included talent acquisition, M&A activities, and partnership building within the federal industry. “Our partnership with Knexus shows our vision of how small businesses and private equity coming together can be incredibly successful for the company, for STB Capital and for the federal mission”, said Matthew Dean, Managing Partner of Scare the Bear Capital. “The entire advisory team at STB was extremely proud to work with Adam Lurie and his team”
“Scare the Bear articulated a vision for how they support small businesses in the GovCon sector and their partnership was critical to help us take the next step,” said Adam Lurie, CEO of Knexus. “They understand exactly the type of investments & strategic decisions that small businesses need to maximize their potential.”
About Knexus
For two decades, Knexus has worked with dozens of agencies across the US Government as a trusted partner to deliver tailored AI solutions to mission-critical problems. With three patents and over 100 peer reviewed scientific papers, the scientists and engineers of Knexus are routinely advancing the frontier between human and machine intelligence. As a Google Cloud Premier Partner and 2025 Google Cloud Partner of the Year for Business Applications in Government, Knexus offers its customers expertise in working with Google Cloud’s AI products, such as the Vertex AI platform and Gemini models, to deliver AI solutions to the public sector.
Learn more at www.knexus.ai.
About Scare the Bear Capital
Scare the Bear Capital is a private equity investment firm headquartered in Falls Church, VA, that partners with lower middle market companies supporting Federal government clients. The firm makes non-controlling financial investments combined with bringing experienced advisors to support those small businesses in their growth and value creation trajectory.
Learn more at www.scarethebear.com.
