Govtech Fund Launches $25mn Second Fund
Govtech Fund today announced the launch of its second fund, a $25M early stage venture fund focused on rapid-growth startups that are modernizing the $500B global government software and IT market and, in turn, repairing society's connective tissue.
Since its launch in 2014, Govtech Fund's first venture fund has invested in fifteen govtech startups focused on new software tools for government employees that significantly improve how they deliver a wide array of government services including foster care, law enforcement, parking management, municipal bond issuance, procurement, food safety, and education administration, to name just a few.
Govtech Fund's early stage portfolio companies have attained double-digit monthly growth attracting more than $200M in capital from leading venture capitalists such as First Round Capital, Lowercase Capital, General Catalyst, Bezos Expeditions, Andreessen Horowitz, Khosla Ventures, Slow Ventures, Jim Breyer and more. Govtech Fund has also built an ecosystem of 20,000+ government agency relationships.
Today's announced second venture fund has already invested in four govtech startups focused on modernizing the internal operations of government. Examples of the new portfolio investments include Glimpse which identifies and evaluates school district eROI (education return on investment) for every product, program, service or strategy implemented in a classroom and Sema, which transforms legacy software code maintenance for government and industry software systems.
"As we considered a multitude of venture investors, our goal was to partner with the a fund that truly understood the govtech market," noted Matt Van Itallie, CEO of Sema. "We're not just backed by the Govtech Fund's capital, but with the govtech ecosystem they have built."
Govtech Fund's core belief is that startups -- through their ability to attract investment capital, recruit the best talent, and deliver innovation at enterprise-grade scale -- are society's best vehicle by which to modernize the internal operations of government and repair society's connective tissue.
"To reflect on the exceptional work of these startups and their teams is incredibly inspiring," said Ron Bouganim, Founder and Managing Partner of Govtech Fund. "From tripling the number of foster families in San Francisco, to adding the equivalent of 110 new police officers through up to 80 percent administrative time savings in D.C.'s Metropolitan Police Department, to saving Monroe County $50,000 on tree trimming, our startups' modern software tools are empowering dedicated government public servants to execute at their fullest potential and restoring confidence in government's role as society's connective tissue."
The Govtech Fund is also announcing today its inaugural Product Advisory Council members, including:
- Jascha Franklin-Hodge: former Chief Information Officer, City Of Boston
- Luke McCormack: former Chief Information Officer at the Department Of Homeland Security, Department Of Justice, and Immigration And Customs Enforcement
- Jay Nath: former Chief Innovation Officer for San Francisco and currently the co-executive director of City Innovate
- Stephanie Rawlings-Blake: former mayor of Baltimore
- Kirk Talbott: Deputy CIO and Executive Director of Smart City initiatives for the City of Atlanta
The Product Advisory Council will leverage its member's breadth of knowledge and experience to provide ongoing detailed feedback on portfolio company products. Council members have signed a non-lobbying pledge to affirm their commitment to exclusively provide product advice.
"I'm honored to be part of an accomplished group of government innovators on the Govtech Fund Product Advisory Council and to provide my expertise to the transformative teams that are making a significant impact on the internal operations of government," said Rawlings Blake.