Tracxn Research: Government Tech Startup Landscape, July 2016

GovTech Report, July 2016

TracxnWorld’s Largest Startup Research Platform

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Contents

Topic Page No.

Scope of Report 05

Entrepreneur Activity 08

Investment Trend 10

Who is Investing 18

Exit Outlook - IPO, Acquisitions 22

Sub Sector Analysis 25

Interesting Companies 34

Useful Links 40

Company List 42

Team 138

3

3


Illustrative Sectors We Track

ENTERPRISEINFRASTRUCTURE

CONSUMER

SECURITY

STORAGE

NETWORKING

MOBILITY

IT OPS

CLOUD INFRASTRUCTURE

API MANAGEMENT

BIGDATA INFRASTRUCTURE

FOOD TECH

SECOND HAND GOODS

EDUCATION

TECHNOLOGY

INTERNET OF THINGS

VIRTUAL REALITY

CONSUMER ROBOTICS

WEARABLE TECHNOLOGY

SMART HOMES

DRONES

SMART CARS

3D PRINTING

EDUCATION IT

SELF LEARNING

HEALTHCARE

MOBILE

MOBILE COMMERCE

MOBILE PAYMENTS

MOBILE MARKETING

MOBILE DEV TOOLS

MOBILE HEALTH

MOBILE GAMING

MOBILE LEARNING

MOBILE COMMUNICATION

LIFE SCIENCES

DIGITAL HEALTH

FINTECH

ENTERPRISEAPPLICATIONS

SAAS

ERP

SCM Software

DATA AS A SERVICE

LEGAL TECH

MARKETING TECH

GovTech

BUSINESS INTELLIGENCE

BITCOIN

PAYMENTS


Sector Overview

Scope of report

This report covers companies providing software to government agencies. The companies considered either have governmentagencies as the only customers or governments being the major customers. They provide both on-premises and cloud-basedsoftware for government agencies in the areas of administration/operations, service delivery, and civic technology.

Companies that provide consulting services, custom software development services, resellers, IT infrastructure providers andsystem integrators are not included in the report.

This report focuses on the following sub-sectors:

The scope of this report includes equity as well as debt funding received by the companies.

Name Descriptions

SuiteCompanies offering a suite of software for government agencies to perform internal operations as well as serve citizen requests

Government Operations Software that helps government agencies in day-to-day internal activities or operations

Citizen Services Software helping government agencies in providing various services to citizens


Market & Funding Insights


Scope of Report

Entrepreneur Activity

Investment Trend

Who is Investing

Exit Outlook - IPO, Acquisitions

Sub Sector Analysis

Interesting Companies

Useful Links

Company List

Team

7

7


21

29

37

2726

22

3

0

8

16

24

32

40

2010 2011 2012 2013 2014 2015 2016

Nu

mb

er o

f C

om

pan

ies

8

YoY – Number of companies founded

Autogrid Captricity OpenGov PayIt LifeRaft Polco UwaziApp

Bidgely SeamlessDocs Mark43 Valor Water Analytics Documaster Citygram CommunityLogiq


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

9

9


YoY – Number of Rounds and Total Funding

$100M

$30M

$98M

$149M$138M

$306M

$760M

$1.2B

$114M

8 9

11

18

35

4344 43

17

0

10

20

30

40

50

0

280

560

840

1120

1400

2008 2009 2010 2011 2012 2013 2014 2015 2016

Nu

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er of R

ou

nd

sFu

nd

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Am

ou

nt

(in

Mill

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s)

Funding Amount Number of Rounds

Note: The funding includes debt rounds also.


YoY – Number of Rounds by Stage


YoY – Funding by Stage


Average Ticket Size – Early Stage


Top investments in last one year


Top investments in last one year


Funnel view of Sector


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

17

17


Most Active Investors in Sector

7 7 7

6 6 6

5 5 5 5

0

1

2

3

4

5

6

7

8

Govtech Fund KnightFoundation

Lauder Partners City Light Capital ClaremontCreek Ventures

Code for America Bain Capital DFJ Venture Formation 8 Founders Fund

Tota

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er o

f C

om

pan

ies

Mark43 PublicStuff SST Inc. SST Inc. SST Inc. Aunt BerthaRave Mobile

SafetyWaterSmart

EnvironmentalOpenGov Palantir

mySidewalk Citymart AmigoCloud Polaris Wireless Neighborly OpenGov


Where are Top Investors investing


Top Investor by Stage of Entry


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

21

21


IPOs

IPO Date Company OverviewFunding Amount

May-2002 verint.comVerint

(Melville, 1994)Security intelligence, anti-fraud, risk & compliance and customer engagement optimization

Mar-2000 onvia.comOnvia

(Seattle, 1996)

Procurement management and bid notification solutionsMohr Davidow Ventures, Comdisco, Internet Capital Group, GE Equity, Dominion Ventures $37M

Oct-1999 fabasoft.comFabasoft

(Linz, 1988)Records management for government agencies

Jul-1999 egov.comNIC Inc

(Olathe, 1991)Digital services and payment processing for government agencies.

Jun-1996 abmindia.comABM Knowledgeware Ltd

(Edinburgh, 1993)Administration and citizen service solutions

Feb-1970 tylertech.comTyler Tech

(Plano, 1966)End-to-end information systems for local governments


Acquisitions


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

24

24


July 2016Tracxn BlueBox : GovTech375+ companies in the sector, 86 funded in last 5 years, $1B+ invested in 2015/16


Top Business Models by Funding

$3.0B

$232M$53M

0

700

1400

2100

2800

3500

Government Operations Suite Citizen Services

Tota

l Fu

nd

ing

Am

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nt

(in

Mill

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s)

# Cos. 221 24 137

AVG FY 2001.1 1985.1 2007.5

Palantir Accela Lagan Technologies

InterAct911 American Data Group PublicStuff


Government Operations – Business Model Description


Government Operations – Entrepreneur Activity and Investment Trend


Government Operations – Most Funded Companies


Citizen Services – Business Model Description


Citizen Services – Entrepreneur Activity and Investment Trend


Citizen Services – Most Funded Companies


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

33

33


Interesting Series A Companies

Company Overview Business ModelTotal

Funding

granicus.comGranicus

(1999, Denver)

Cloud-based platform for transparency, process management, legislative efficiency, and citizen engagement

JMI Equity Fund

Government Operations > Legislative Management

$10.3M

smartprocure.usSmartProcure

(2011, Deerfield Beach)

Cloud based repository of government purchase data

New Ground Ventures, Govtech Fund

Government Operations > Procurement Management

$7.9M

placemeter.comPlacemeter

(2012, New York City)

Platform that senses and unlocks data about activity in physical places

NEA, Qualcomm Ventures, TriplePoint Capital, Techstars, Collaborative Fund, FundersClub, blisce

Government Operations > Analytics & BI > Smart Governance

$7.83M

diona.comDiona

(2012, Dublin)

Mobile solutions for delivering health and human services

ACT Venture Capital, InvestecCitizen Services > Service Delivery $5.5M

predpol.comPredPol

(2012, Los Angeles)

Crime prediction platform for law enforcement agencies

venturecapital.ucla.edu

Government Operations > Public Safety Management > Law Enforcement

$3.68M

Curated list of companies by the sector analyst are defined as Interesting


Interesting Series A Companies


Interesting Late Stage Companies


Interesting Late Stage Companies


Top Funded Deadpooled Companies


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

39

39


Useful Links

Title Content Platform Link

List of All Companies in readable format Companies Link

Upcoming Sectors Entrepreneur Activity Link

Top investments in last one year Investment Trend Link

IPOs Exit Outlook - IPO, Acquisitions Link

Acquisitions Exit Outlook - IPO, Acquisitions Link

Funded Companies Sub Sector Understand Link

Top Funded Deadpooled Companies Company Link

http://tracxn.com/theme/feedview/56d99a50e4b064ac7d8a078b

http://tracxn.com/theme/upcoming/56d99a50e4b064ac7d8a078b

http://tracxn.com/theme/feedview/56d99a50e4b064ac7d8a078b#%7Csort%3DdatePublished%7Corder%3DDEFAULT%7CfeedName%3DGovTech%7ClatestFundedDate%5Emin%3D01%2F01%2F2015%5Emax%3D29%2F06%2F2016

http://tracxn.com/theme/feedview/56d99a50e4b064ac7d8a078b#%7Csort%3DdatePublished%7Corder%3DDEFAULT%7CfeedName%3DGovTech%7CcompanyType%3DPUBLIC

http://tracxn.com/theme/feedview/56d99a50e4b064ac7d8a078b#%7Csort%3DdatePublished%7Corder%3DDEFAULT%7CfeedName%3DGovTech%7CcompanyType%3DACQUIRED

http://tracxn.com/theme/feedview/56d99a50e4b064ac7d8a078b#%7Csort%3DdatePublished%7Corder%3DDEFAULT%7CfeedName%3DGovTech%7CisFunded%3Dtrue

http://tracxn.com/theme/feedview/56d99a50e4b064ac7d8a078b#%7Csort%3DdatePublished%7Corder%3DDEFAULT%7CfeedName%3DGovTech%7CcompanyType%3DDEADPOOLED%7CisFunded%3Dtrue


Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

41

41


GovTech – Company List

COVERS THE FOLLOWING SECTORS

Suite Government Operations Citizen Services


Suite (1/6)


Company Details Funding Investors

Accela [San Ramon, 1999]: Accela's civic platform provides both on-premises and cloudsolutions to governments for land, permitting, asset, licensing, right-of-way, legislativemanagement, and resource and recreation management processes. The solutions are targetedtowards city, county, state, and federal government agencies. Claims to have more than 2200local and state government customers and more than 50% of cities in the U.S arepermitting/licensing customers. Acquired Publicstuff, Springbook software, and Softright in2015; Acquired Decade Software Company, Government Outreach, Kinsail, Envista, IQM2,GeoTMS in 2014.

$231.5M

Wells Fargo, ABRY Partners, Bregal Sagemount, Landmark Partners, Karlani Capital, jpelonline.com, Primary Venture Partner, Bregal

Sagemount

American Data Group [Centennial, 1983]: American Data Group provides web-based softwarefor local government agencies of all sizes. It offers solutions in the areas of financial processing& reporting, asset management, payroll & HR management, utility billing services, communitydevelopment, sales tax collection, and court management. City of Auburndale, Orange County,and City of Wheat Ridge are among the customers.

SoftwareSolutions [Dayton, 1978]: Software Solutions provides software for governmentagencies. Visual Intelligence Portfolio is a web-based ERP software for government agencies inthe areas of accounting, payroll, and utility billing, performance management, income taxadministration and analytics Provides Utility Customer Information Systems suite for utilitybilling, service order management, e-billing, and payment. Louisville, Bartholomew County, andGeorgetown municipal water are among the customers.

HiperWeb [Marietta, 1993]: HiperWeb, developed by PSD Software, provides software forgovernment agencies. Provides solutions for asset management, work management, materialsmanagement, performance management, utility billing, procurement management,inspections, strategic planning, and citizen services. Software for utilities, public works,compliance, administration, and engineering. City of Elberton, City of Griffin, and City of Edenare among the customers.

http://www.accela.com/

http://www.adginc.net/

http://www.mysoftwaresolutions.com/

http://www.epsdi.com/


Suite (2/6)


Bellamy Software [Edmonton, ]: Bellamy software, a part of Sylogist group, provides a suite ofboth web-based and on-premises software for public sector agencies and school districts inCanada. Provides software for financial management, budgeting, revenue management,analytics, HR management, operations management, citizen engagement, meetingmanagement, permitting, and planning.

Cayenta [Burnaby, ]: Cayenta, a subsidiary of Harris Computers, provides financialmanagement, HR/Payroll systems, Computer Information Systems(CIS), and OperationManagement Systems to government agencies, utilities, and cooperatives. The City of IdahoFalls, the City of Orangeburg, and Helix water district are among the clients. Acquired by HarrisComputers in June 2004, which is a group company of Constellation Software.

OTS [Thessaloniki, 1993]: OTS provides software for government authorities in the areas of e-citizen services. Solutions are provided for public accounting, payroll & personnelmanagement, revenue management, project monitoring, procurement management, andwater management. Solutions are for municipalities, public entities, regions, governmentagencies, and decentralized administrations.

FreedomSystems [Montgomeryville, 1986]: Freedom Systems, developed by MagisTechnology Group, provides solutions to local government agencies. CityShare is both web-based and on-premises software for local government agencies for revenue management,financial management, tax management, permitting, licensing, code enforcement, employeemanagement, asset management, and decision-making tools.


http://www.bellamysoftware.com/

http://www.cayenta.com/

http://www.ots.gr/

http://www.freedomsys.com/


Suite (3/6)


Northgate Public Services [Hemel Hempstead, 1969]: Northgate Public Services providessoftware, outsourcing, business processing services and document solutions to public sectorclients. Provides software lo local government agencies in the areas of housing, revenue, socialcare, citizen relationship management, financial, and utilities billing. Also provides software forlaw enforcement agencies called CONNECT. Offers solutions to police and other lawenforcement agencies in the areas of case management, forensics, intelligence, investigation,and GIS. Has clients in the UK, U.S, Australia, Canada, Ireland, New Zealand, and India. Thepublic services division of Northgate Information Systems was acquired by Cinven in December2014 and renamed as Northgate Public Services.

Diamond Municipal [Kelowna, ]: Diamond Municipal provides software for municipalitiesacross Canada. Provides solutions in the areas of financial management, revenue management,human capital management, licensing, permitting, community development, and a citizen self-service portal called Diamond Virtual City Hall. Diamond Smart is a suite for municipalities withpopulation less than 5000. Claims to be providing solutions to about 260 local governmentagencies across Canada. Recognized as Microsoft Dynamics ISV of the year 2012 for Canada.Acquired CompuPower in 2003 and WorkTech in 2005.

Dallas Data Systems [Pottstown, 1997]: Dallas Data Systems provides municipal mangementsolutions in the areas of financial management, payroll and HR, utilities management, courtmanagement, business tax, business and animal licensing.


http://www.northgatepublicservices.co.uk/

http://www.diamondmunicipal.com/

http://www.dallasdatasystems.com/


Suite (4/6)



Suite (5/6)



Suite (6/6)



Government Operations (1/55)





































































































































































Citizen Services (1/33)



































































































Scope of Report


Investment Trend

Who is Investing


Sub Sector Analysis


Useful Links

Company List

Team

137

137


Team

Vasudev Neehar Chinnam

Lead Analyst, Enterprise Applications

https://www.linkedin.com/in/vasudev-neehar-chinnam-03105410

https://twitter.com/Neehar1687

Data & Analytics

Tracxn Research: Government Tech Startup Landscape, July 2016