[RonnieB]

Indeed -- and this will be a topic for some follow up posts (if I can actually get the time to write them :) -- much of the govtech innovation is happening today at the municipal level. I would encourage you to start there as there are tens of thousands of potential customers. None of our companies contract, sub-contract, lobby, etc and sales are done directly to the departmental buyer.

The good news is that we're starting to see many of the same industry trends mentioned (eg. adoption of the cloud, new wave of gov't employees/buyers due to retirement cycle, riding the cost curve, etc.) at the State level but that will, in our estimate, take the next 5 years to mimic what we're seeing at the municipal level.

Re: the Federal level, our expectation is that we will see the changes start to appear 5 years from now. I know that's a little depressing but a $400 Billion global spend does not turn on a dime.

All of this to say: the govtech revolution is very real as we see from the performance of our startups but it's happening bottom-up not top-down AND this will be a multi-decade technology replacement cycle (not to mention the govtech transformation globally where time cycles will vary).

Honestly, not to sound like we're overhyping, but the rewiring of government is inevitable. The major tech trends are just too powerful in both the consumer and enterprise spheres to skip government. And frankly, we deserve better.

It's also why we're pretty sure there will be Govtech Fund II, III, IV... :)

[USNetizen]

I'd only change one thing about your response, which was great by the way and is exactly like my own views of the space. The changes are happening NOW in the federal space, and quite quickly in some sectors, you just have to know where to look. My company has actually seen more of it at the federal level than at the state or local levels. It may not be widespread for another 5 years, but it is going on now in many agencies.

The change you mention is definitely inevitable. People just have to understand it a little better and push a little harder to break their way into the market. I've been working in this space for a while, but my latest company is relatively new to it. Even though, we've made incredible headway. Growing VERY fast from government contracts, pushing innovation at every turn and finding some very receptive federal customers for the ideas we are offering up to them.

[RonnieB]

Agreed. I should have qualified my comment as you are here. Indeed, what I'm referring to is a systemic shift ie. visible easily across a landscape. In that context, I think my comments make more sense. But I'm thrilled to hear of your success! Please share any stories with us on Twitter @GovtechFund.

[ilamont]

... [On] the Federal level, our expectation is that we will see the changes start to appear 5 years from now. ...

Can you share the evidence or reasoning on this particular point? I would expect that reforming the federal contracting system would require major legislative and organizational changes ... and I simply don't see that happening with the current Congress or slate of presidential candidates.